What could be more perfect than realising that dream of buying and owning a brand new home? A new-build property!
New home buyers have it easy these days: free carpets, free turf, free kitchen appliances, free legal fees, free this and a little bit of free that.
Combined with new-build help-to-buy schemes via government and developer equity loans where the buyer only has to front up an initial 5% deposit moving into a new house all seems easy. Too easy.
Easy, until that is… Aaarrgghh you forgot, you still need to sell your own home!
What choices have you got when it comes to selling property when you want to buy a Barratt, Redrow, Taylor Wimpey, Rowland, Persimmon, Morris Homes or other developers property?
Bear in mind, you will be buying the end of the chain, your new house will be vacant possession and will have no chain delay. You don’t really want to tie yourself up in a huge multiple property chain dragging you down with delays, surveys, gazumping, gazundering, re-negotiations and a whole alphabet of different estate agents combined with different buyers all wanting to move on different days. It’s a toxic mix just waiting to breakdown, and breakdown they do!
In fact RICS advised over 1 in 3 (36%) of private treaty property sales fell through and failed to complete in 2015 and the most common reason? Buyers changing their mind! Nothing any more complicated than that. How fickle a bunch we home movers are.
So how can I sell my property quickly, securely and with a certain degree of certainty? In an ideal world you would sell fast to a quick cash buyer in no chain, with no house to sell, no mortgage, does not need a survey and can offer cash in 24 hours with 5 day completion. 365 Property Buyer, will buy any property, in any condition, anywhere in the UK. Fast cash property buyers make a viable alternative and whilst they may offer a discounted cash offer, they allow you to buy chain free and secure a better discounted purchase price with the builders. Builders love selling new homes to chain free buyers and will often agree to big discounts to ready willing and able buyers.
You could use the services of an estate agent – either a high street estate agent or a more modern online internet based estate agent Both are easily accessible and a tried and trusted route to sale, but, both come with the risk of the sale not completing, a chain collapse, a sale fall through as a buyer has pulled out due to a change of mind, lets not forget 36% chance of that sale going no where fast.
Part exchange. Of course you can always part exchange, well, nearly always. Some new housing developments are so popular that builders don’t offer part exchange, It’s first come, first served so if you have not sold your own house yet… you’d better get to the back of the queue. For those new home sites where Part Exchange or PX is offered it can be an ideal solution. Basically the part exchange process involves the builder arranging for several valuations and a survey of your home – they want to make sure its got high a chance of selling quickly and is priced keenly or discounted in the market place – you wont always get a choice of agent or the best price or even get a say in the asking price but you will get a part exchange offer from the builder.
Effectively, the builder is your buyer and the offer they make on your property is then deducted from the new home your wanting to buy. Providing that the new home is more expensive, in most cases there must be a 30% difference in value between the re-sale house and the new build. Part exchange does offer speed, certainty and ease but rarely does it offer the seller a good financial deal – you end up taking a discounted offer on your own home (so the builder can sell it quickly and make a profit to cover their costs) but even worse you are forced into buying the new home at full retail list price – no room to negotiate – the developer wins both ends. Sure you get a nice new shiny house but at what cost, you sell cheaply and buy at full price.
Before you part exchange make sure you get a cash offer from 365 Property Buyer because then you can haggle with the builders, and we are here to answer any questions you may have, simply contact us.