One of my children is thinking of buying a new house from a major national house builder. The estate is at an early stage and will contain around 100 houses when it is finished.
As an interested party, I’d appreciate any comments from those who have experience of negotiating a part exchange with a major builder.
The current house has been valued by a local estate agent who suggests it should be fairly straightforward to sell as it’s a standard three bed link detached. Its value will be around two thirds the cost of the new house.
I will be the provider of most/all of the upgrade cost. It will be a simple gift and I am aware of the legal implications of this. The current mortgage is small (thanks to the bank of dad and mum in the past and should be easily transferable.)
We’d like to feel that we’ve negotiated a “good deal” and that’s why I’m asking the above question. If it were me, in this situation in the past, I would sell the house myself and then be a cash purchaser but this might take time and they are a busy family. I’m guessing that the builder’s part exchange price will be lower than the estate agent’s estimate.
The move is not urgent and we are not desperate to buy so are in a reasonable negotiating position.
Any views or experience of the best method to understand the total cost of changing houses including all the extra charges/taxes would be appreciated. And any tips on negotiating with a big builder?
regards
Howard
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How to negotiate a house part exchange?
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Re: How to negotiate a house part exchange?
We have twice part exchanged when buying a new build.
Last time was twenty five years ago, so things may have changed a bit in the meantime. I think it's certainly easier to weigh up how good the offer is now with the likes of Zoopla/Land Registry sold prices.
Yes, the offer was less than we might have been able to achieve with a private sale, but having no estate agents fees, no worries about chains failing and greater certainty over completion dates (though this tends to be dependent on the new build's progress rather than anything else) made it worthwhile for us.
We tried negotiating but the offer was very much a take it or leave it one.
Last time was twenty five years ago, so things may have changed a bit in the meantime. I think it's certainly easier to weigh up how good the offer is now with the likes of Zoopla/Land Registry sold prices.
Yes, the offer was less than we might have been able to achieve with a private sale, but having no estate agents fees, no worries about chains failing and greater certainty over completion dates (though this tends to be dependent on the new build's progress rather than anything else) made it worthwhile for us.
We tried negotiating but the offer was very much a take it or leave it one.
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