Reply to: Property Part-ex

[JRCT]

Do they tell you (have you asked) how much under market value they'll give you? I mean it's not hard to get your house valued, even by the same agent, and then separately ask about part-ex.
If you find out, would you report back, I'd be interested.

So the part-ex never happened and it went pretty much as I expected.

The flat was vlaued at £100k. The estate agent has an Investment arm which make the part-ex offer. Without getting as far as an offer, they told me that I wouldn't get market value, and probably wouldn't get near to £90k that I'd suggested as my minimum. What they did say they'd do is speak to the vendor of the house I wanted to buy and see if they would drop their price by £20k. If so, then an offer of £80k for the flat would be the same as both properties going at market rate.

My answer to that was "If they're willing to drop the price by £20k, then I'll sell the flat myself at market rate and make an offer £20k less than they're asking". He said that was up to me. Hmmm.

[vetran]

Why do you need 75 houses?

I have to accommodate the concubines.

[vetran]

Yeah, there's never anything wrong with them. Except you have to replace the boiler. And the wiring is probably naff. And when you try to take the wallpaper off the plaster comes with it. Etc. There's always something wrong

which you factor into the price and have done by people you trust and to your taste.

If you are going to put lipstick on a pig at least make sure its a fit and healthy one that you fancy!

replaster , 3 new toilets / bathrooms, boiler and rewire is about £20-30K.

having a garden you can swing a cat in and more than one parking space = priceless

[JRCT]

Do they tell you (have you asked) how much under market value they'll give you? I mean it's not hard to get your house valued, even by the same agent, and then separately ask about part-ex.
If you find out, would you report back, I'd be interested.

They haven't said yet. I've had to fill out a form of what it's worth and what the minimum offer is that I would accept (What?). I clearly put something higher end in there.

The flat is going to be worth around £100k. I'm getting an independent valuation done next week, but that won't be far off.

I suspect if they offered anywhere around £90k I'd be tempted. If they offer £70k then forget it.

[JRCT]

there you go, just to cheer you up.

Homeowner finds 140 problems with his new £580,000 Taylor Wimpey home | Daily Mail Online

i'll stick with 1960-75 houses.

Why do you need 75 houses?

[d000hg]

The Estate Agents that are selling the house we are looking to buy - not the owner of the house - offer the part-ex. They will buy it and resell it.

Assuming they're happy to go ahead with the part-ex, they'll make me an offer less than market rate. I just wondered if anyone else had done this and what an acceptable drop is. They will obvoiusly try to make as much money for themselves as possible.

Interestingly they claim to have some success with something called 'cost-to-change'. So if the house you're buying is worth £50k more than the one you're selling, that's the cost-to-change. If they offer less than market rate on your part-ex, they convince the seller to drop their price so the cost-to-change is still £50k.

I don't see how that could work, but they claim it's quite successful.

Do they tell you (have you asked) how much under market value they'll give you? I mean it's not hard to get your house valued, even by the same agent, and then separately ask about part-ex.
If you find out, would you report back, I'd be interested.

there you go, just to cheer you up.

Homeowner finds 140 problems with his new £580,000 Taylor Wimpey home | Daily Mail Online

i'll stick with 1960-75 houses.

Yeah, there's never anything wrong with them. Except you have to replace the boiler. And the wiring is probably naff. And when you try to take the wallpaper off the plaster comes with it. Etc. There's always something wrong

[vetran]

there you go, just to cheer you up.

Homeowner finds 140 problems with his new £580,000 Taylor Wimpey home | Daily Mail Online

i'll stick with 1960-75 houses.

[JRCT]

The Estate Agents that are selling the house we are looking to buy - not the owner of the house - offer the part-ex. They will buy it and resell it.

Assuming they're happy to go ahead with the part-ex, they'll make me an offer less than market rate. I just wondered if anyone else had done this and what an acceptable drop is. They will obvoiusly try to make as much money for themselves as possible.

Interestingly they claim to have some success with something called 'cost-to-change'. So if the house you're buying is worth £50k more than the one you're selling, that's the cost-to-change. If they offer less than market rate on your part-ex, they convince the seller to drop their price so the cost-to-change is still £50k.

I don't see how that could work, but they claim it's quite successful.

[eek]

I am a bit confused about doing a part-ex when the house is already owned, not new. Would you swap houses? If not, who are you part-exing with?

I did consider a few years ago doing part-ex as a way to get out of the house we own in a rather insalubrious area, but in the end we just moved and then let it out.

When doing part-ex with a housing company, they say local agents will be asked for a fair price but I assume they don't, does the housing agency sweeten the deal for them to offere a depressed price?

Probably the people selling the house. I've seen a few recently where sellers of large houses part exchange to shrink the chain to manageable levels.

[d000hg]

You're right, of course. I do like the house. It's much bigger than where we are. It's detached with a big garden all round, and the current owner has put down enough block paving for about 12 cars. I think they'll mostly be going on eBay if I do buy it.

So, the question was just about the part exchange aspect of things. I'm hoping to part-ex a flat we rent out. We don't live in it, but it would make the purchase a lot smoother if we could release the capital from it.

I can see that a part-ex could make the whole process quicker and easier, but is that me just being lazy? What losses on market value should I expect to take for this laziness?

I am a bit confused about doing a part-ex when the house is already owned, not new. Would you swap houses? If not, who are you part-exing with?

I did consider a few years ago doing part-ex as a way to get out of the house we own in a rather insalubrious area, but in the end we just moved and then let it out.

When doing part-ex with a housing company, they say local agents will be asked for a fair price but I assume they don't, does the housing agency sweeten the deal for them to offere a depressed price?

[eek]

You're right, of course. I do like the house. It's much bigger than where we are. It's detached with a big garden all round, and the current owner has put down enough block paving for about 12 cars. I think they'll mostly be going on eBay if I do buy it.

So, the question was just about the part exchange aspect of things. I'm hoping to part-ex a flat we rent out. We don't live in it, but it would make the purchase a lot smoother if we could release the capital from it.

I can see that a part-ex could make the whole process quicker and easier, but is that me just being lazy? What losses on market value should I expect to take for this laziness?

It depends on what the person offering the part ex (probably the seller of the house) wants. It could be full market value it could be less 10% you won't know until you see what they offer...

[JRCT]

You're right, of course. I do like the house. It's much bigger than where we are. It's detached with a big garden all round, and the current owner has put down enough block paving for about 12 cars. I think they'll mostly be going on eBay if I do buy it.

So, the question was just about the part exchange aspect of things. I'm hoping to part-ex a flat we rent out. We don't live in it, but it would make the purchase a lot smoother if we could release the capital from it.

I can see that a part-ex could make the whole process quicker and easier, but is that me just being lazy? What losses on market value should I expect to take for this laziness?

[d000hg]

Assuming you are going for a new build – don’t do it, unless it’s an “executive home” the build quality on new builds tends to be shocking, with minimal room size, gardens & parking

One would rather assume he's actually looked at the house and decided he likes it already by the time he gets to this point!

FWIW I mostly agree although in towns the "small house" thing is common anyway, and there are some nice examples. We're in a nice-ish one where they had to make the houses look nice due to conservation rules, but signs of poor workmanship are evident (drafty windows, etc).

There's a great new-build development in Durham but we didn't have the cash when the house we were renting there came up for sale so we got kicked out.

[northernladuk]

... and if you want a garage to put a car in and it says garage make sure you measure it up. You can't get a car in to a Persimmons one nowadays.. Well you can but you can't get out of the car.

[Halo Jones]

Yep but at least prior to 1998 the amount of space between houses wasn't quite as bad as it was after that...

True, that & other details has gotten worse over the years, this is why I don't like resi works - I will stay in commercial build.