Due to the recent economic slowdown in the United Kingdom, caused in no small part by the Brexit vote, many homeowners are concerned about whether or not they will be able to sell their property within a stagnant market. One option you could consider is a part exchange house scheme (or a PX scheme for short). These programmes allow a property owner to literally “exchange” their home and put the value towards a new property. This helps by giving much-needed liquidity, completing a purchase faster and avoiding pesky property chains. However, are part exchange home schemes worth it in today’s climate? To answer this question, let’s take a look at a few facts and figures in more detail.
Part Exchange House Schemes: A Basic Overview
The first thing we need to take into account is how buoyant the market is within your area of London. Of course, some locations are known for higher property values and quicker sales than others. Chief Executive Mark Harris of SPF Clients explains that choosing a part exchange scheme in these areas can actually lower the sale price of a home. In this instance, he believes that a traditional sale could be a much better prospect. This assumes that the property owner is in no rush to move his or her home onto the open market.
Another concern revolves around the part exchange value of the home. As part exchange house schemes tend to focus on a quicker sale, the owner may not be receiving the best price. As estate agency giant Taylor Wimpey points out, it is wise to get multiple property valuations to avoid this.
Finally, there are a few other positive issues to take into account before making a decision:
- You won’t need to pay any estate agent fees.
- The sale process can be much faster
- You won’t have to deal with multiple potential buyers viewing your home and the hassle that causes.
- Long and frustrating property chains will be eliminated altogether.
These are all critical factors if you wish to sell your London home within a specific period of time.
Taking Brexit Into Account
Like many property owners, you are probably wondering how Brexit is going to affect the UK housing market. The second-largest estate agency in the United Kingdom LSL recently warned that uncertainty within the market could put a very real dent into sales for years to come.
This is where the true power of the part exchange house scheme comes into play. Companies and builders are looking to snatch up homes at discounted prices, while sellers will be able to complete the process in a much quicker fashion. These two advantages cannot be denied.
So although there is still a lot of uncertainty about what the future holds for the housing market. By looking at the options in a simple, informed way, you will be able to make the best decision at the right time.