Anyone who has followed the news lately is well aware of the supposed property boom in and around London. While these stories have taken the lion’s share of public interest, there are always some circumstances where a property does not sell quickly enough. One interesting way to combat this situation is to engage in what is known as a part exchange scheme. If you are looking to buy new build property but you need to sell your existing home first, this is an important concept to understand. How does this process work and what are its benefits?
Part Exchange Schemes Defined
A part exchange scheme is an agreement between a new build property developer and a buyer. This arrangement states that the developer of a new build property will buy your existing home to enable you to purchase one of their new build properties. Please note that the developer will supply an offer after your current home has been priced by at least two separate and independent firms. This way, you are able to avoid the frustrations of a stagnant market while simultaneously keeping yourself out of those dreaded property chains. What other advantages will you be able to enjoy?
Taking Estate Agents Out of the Equation
Many property owners can quickly become frustrated in regards to the time it may take an estate agent to sell a home as well as the fees that are often involved. A part exchange programme can avoid these pitfalls altogether. This is an ideal situation for those who may not have the time or the funds to wait for months.
The price offered is usually on the short side due to the service and convenience that such a scheme offers. Although this is a great benefit, we should still mention here that many reputable sources add that it is wise to have your home evaluated by an unrelated third party to make sure the price that you receive is fair and balanced.
It is also likely that the buyer (the builder in this case) will take care of the other logistics behind a home sale. These can include handling paperwork, litigation issues and any surveys which may be needed beforehand. Above all, let’s not forget that a part exchange by its very definition indicates that you already have found a buyer for your home. Assuming that you live in a rather stagnant area in terms of real estate, this advantage can never be overlooked.
Let us finally point out that not all homes are included within this plan. The developer will take into account the condition of the current property, its location and the difference between the value of this property and the new home that you want to move into.
Some developers are known to use the services of third party property purchasing companies such as Molae Properties. Property purchasing companies are able to facilitate the purchase of new build properties for the buyer. This also helps the property developer to sell their stock. In these times of boom or bust, part exchanges can be a convenient way forward.