jaytc2003

iTrader: (1)

Looking at getting a new build house and they also do a part ex. Our house is currently on the market but what the builders do is get 2 local estate agents to do a valuation for a 6 - 8 week sale. Just wondering if anyone has done this what sort of value they got.

Our house is currently on for £109950 so what realistically do you think we would be offered (we used 3 estate agents for valuation and we didnt tell them what we though it was worth and we used the lowest valuation of the 3 involved)

Cheers for any responses

NotoriousREV

It depends on the value of the house you're buying and how desperate they are to shift their new build.

We nearly px'ed our house in a weird deal. Basically, the guy whose house we were buying messed us around so much that the buyers of our house pulled out f the deal so he arranged to px our house with the builders of his new property. They offered us full asking price but that was a house worth £150k against a new build worth £750k that had been on the market for over 12 months.

In the end we didn't move forward on it because our original buyers came back in at the last minute.

Kuro

We did this through Westbury (now Persimmon) in 2001.

It was very well managed and saved us so much time and fuss. Westbury did the same in terms of Estate Agent valuations, they simply take the mean figure and go from there.

To be honest, given the saving in time, energy, no gazumping/chains and all that crap, I was expecting (and happy to) take a slight hit on the offer price. As it happens, most large builders offer market value anyway.

In summary, we'd definately go via the part-ex route again in fact, we wouldn't consider another new build house unless part-ex was an option.

Go for it

richs2891

Yeah did this in April this year with Mcdermott homes. They have some odd rule that the houe part ex for must be worth 30% more.
Makes for a whole lot less hassle - didnt have to pay any estate agents fee which was good (made up for the slight reduced price) and when moving easier as new house delayed, and had the keys to both house over three days so nice and relaxed moving house !
Defiantely a good idea if going for a new build
Richard

jaytc2003

iTrader: (1)

Ours is with Elite homes and they have the same kind of thing where the 30% rule applies. Have all the forms so may just give them their deposit tonight and go for it, they will give us carpets throughout, pay for removals, and also pay all fee's so can afford to take a bit of a hit on ours as we wont need to pay all the other stuff.

pslewis

Does the Stamp Duty apply to the exchange price (ie. the balance) or the New Build Price?

It used to be, in my day, a great way to avoid a Stamp Duty hit!

MattW

Stamp Duty applies to the New Build price.

Be aware though that most new build homes will have some incentives, we have our house on the market at the moment and the new builds we are after have £20k worth of incentives (read discount). If you take part ex it is unlikely you will have access to that so the move could in effect cost you 20k more than selling privately.

The market will pick up again in January, i'd wait till then before you do anything.

jaytc2003

iTrader: (1)

as mentioned above, we have got access to the incentives. The builders are trying to get rid of these plots so they can start on the next phase of development

CrisPDuk

Don't want to put you off here, just adding a note of caution.

A couple I used to work with went down this route with a nationally renowned builder. Written into the small print was a clause whereby they had to be out of their existing house by a certain date, they thought this would be fine as the date was well afer the proposed new build completion date. The new build got seriously delayed because somebody in the company's planning & regs dept screwed up.
The deadline date came & went, the building company attempted to evict them from their existing home, and when that failed, sued them for breach of contract
Fortunately in their case his father was/is a solicitor, so they were getting decent legal assistance right from the off, but even with that, 3+ years down the line, as far as I'm aware (I no longer work at the same company so don't see them that often anymore) it still isn't resolved

MattW

Go for it then. Won't need to pay estate agent fees either.

jaytc2003

iTrader: (1)

we are okay on that score, the completed agreement we have got (not given back into them yet as we didnt have our cheque book with us yesterday), states that we stay in our house until we move into the new house. We only hand our keys over to the person on site, on the day we recieve our keys for the new property.

Thanks for the responses guys, think it has helped lots with the decision.