Should I Part-Exchange My Home?

The term part-exchanging is more commonly heard around the sale and purchase of a car. But did you know that you can part-exchange your home? This is where you can part-exchange your existing house to buy a new house. This is done instead of selling your property through an estate agent. If you are looking to move house quickly, part exchanging your home is a good option. The developer of your new home will buy your existing home and subtract the value of it from your new home.

As with most things, there are reasons for and against the part-exchange of your home. For example, maybe you should part-exchange your home because you can avoid the open market and get rid of estate agency fees too. There will also be no unpredictable chains or constant appointments for viewings. You get the advantage of a guaranteed sale and all in all, it’s a less stressful way to sell and buy a new home.

However, there are disadvantages to part exchanging your home too. For example, you may be offered 5% to 10% less on the market value of your current home. You may also find that it is impossible to negotiate any discounts on your home with domestic conveyancing experts on your side. Not every property is eligible for a part-exchange, so you will need to look into it for your home.

You will find that your current home must also be worth around 70% of the value of the new property. In many cases, leasehold flats and short-lease properties will be less attractive to the property developer. It’s important to remember that the value of a new home will drop as soon as you move in. This is because part-exchange new homes are often priced at the top of the market.

If you are a homeowner looking to move up the housing ladder without the stress and unpredictability of the housing market, then part-exchanging your home could be the perfect solution. But it is important to get expert legal advice and guidance.

Call our residential conveyancing legal specialists now. We will be happy to answer any questions you have. Our conveyancers in Peterborough can help you through the part-exchange process to help you get your dream home.