Should I part exchange?
11 Aug 2015
Part exchanging your home may seem tempting, especially if you’ve been on the market for a long time and can’t find a buyer, or if you want to avoid estate agents’ fees and be chain-free. But before you decide if this is the right option for you and your home, consider carefully before going down this path.
Part exchange, or PX, gives you the option to trade in your current home as part payment for a new build property from a builder or developer. Although the market is bustling at the moment, some areas in the UK are not doing as well, so part exchange schemes help guarantee sales for the house builders/developers.
Most of the big names (Barratt, Persimmon, Bovis and Taylor Wimpey) will offer part exchange on their new homes, and will advertise this on their website.
However, as tempting as a quick chain-free sell may be, you may get less for your home than holding out and waiting for a buyer.
The house builders/developers wanting to PX, will make an offer on your home after usually at least two independent estate agents valuations. But don’t just take their word for it. Before you agree the price of your home, make sure you get the valuation checked yourself so you understand how they arrived at their offer. If not, they could potentially offer you a lot less than your home is actually worth.
If you do receive an offer, don’t be afraid to negotiate! Try and get the best price on your home by not accepting the first offer, and try and get some money knocked of your new property. Every penny counts!
Part exchanging can be good option and it depends on your circumstances. If you need to move quickly for a new job, or for the start of the school term, PX can move the process a lot quicker.
However, with this comes the potential of not getting the best price for your home, and if you’re in a position to wait, you may get a better deal.