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Guest horace

Purchase Of `part Exhange` House From Builder.

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Guest horace

Despite my advice a neighbour is considering purchasing a `part exchange`house from Westbury Homes.

It is 4 bedroomed with en suite etc,etc and about 5-6 years old.

Presently on the market @ £162950 which is about £15k- £20k less than similar properties in the area.

A search of the LR shows that the house changed hands in January 2002 @ £126950.

How would you approach negotiations with the vendors?

horace.

Edited by horace

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Despite my advice a neighbour is considering purchasing a `part exchange`house from Westbury Homes.

It is 4 bedroomed with en suite etc,etc and about 5-6 years old.

Presently on the market @ £162950 which is about £15k- £20k less than similar properties in the area.

A search of the LR shows that the house changed hands in January 2002 @ £126950.

How would you approach negotiations with vendors?

horace.

Hi - when you say part exchange, do you mean that they can part exchange their house?

if so, then they could use that valuation as a good negotiation.

Alsos, not sure why it is owned by "westbury homes" if it is 5-6 years old - was it rented out before?

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Guest horace

>> LL

My neighbour is a FTB`er.

The property in question is presently occupied by the owners who are moving to a new Westbury home in the next few days.

I presume that under Westbury`s part exchange scheme Westbury become the new owner when the present encumbents move into their new Westbury home but I could be hopelessly wrong in this assumption.

horace

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Back in 1995 or 1996, can't remember exactly, but I bought a part-ex house from Barrett's. I got a discount then of over 10%, from memory I think the house was £56,000 and I got it for £50,000, together with cash back of £1000 if I completed by end of the year because they wanted it all cleared from their books by then. It was about this time of year that I put the offer in as everything was all done and dusted in 4 weeks. I would try a really cheeky offer as I think they just want shot of all these properties rather than have them lingering on their books.

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Despite my advice

How would you approach negotiations with the vendors?

horace.

"Despite my advice " - Are you his accountant or a very close member of his family?

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Horace, why did you adivse against, if it is 10% less than similar properties in the area?

This would mean even if the market dropped by 15% over the next few years, they would be able to weather the storm.

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I part-exchanged a house 7 years ago in what sounds like an identical sort of arrangement. I got a lowish offer from the builders, but we were in a hurry to move, since their development was selling fast.

I think it's rather common, and completely above board. In our case the builders sold our house within days, and the buyer moved in as we vacated.

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I part-exchanged a house 7 years ago in what sounds like an identical sort of arrangement. I got a lowish offer from the builders, but we were in a hurry to move, since their development was selling fast.

I think it's rather common, and completely above board. In our case the builders sold our house within days, and the buyer moved in as we vacated.

builders needing to do part ex is yet another sign times are getting hard. See vendors are like dope junkies they have overdosed on ever rising prices, so will not face up to the reality of the market and be prepared to drop their asking price.

Builders on the other had having bought this land going back a while nodoubt, and only jacking the prices up not because of rising cost but because the punters were in a feeding frenzy, thus driving their profit margins skywards.. So because they are sat on potential massive profits, they buy your house for a average of say three valuations, and move it one hopefully without having to drop the price to much.

As you can see by the builders offer price it is 10% below what the local market is asking right now, so straight away you can see the real market valuation is 10 % below vendor expectations. Me if I had to, I'd offer another 10% below the asking and look non plussed about a possible rejection. Buyers in a position to complete are as numerous as piles of rocking horse poo.

IMHO it is the early stages of a protracted market correction, and as such there is the possability that there will be other less informed market watches just happy to bag a deal they see as 10% below perceived market value.

Like the poster who cited they did the same in 95/96, once markets turn negative it is hard to complete chains. And think on even in the last correction the FTB was not priced out of the market like they are today, then it was purely negative sentiment holding them back along with lenders being more cautious. Today when the public wise up, the market will face a double whammy, in that not only setiment will be against it, but a real inability of FTB'ers to afford a house in the first place.

Me,I'm STR'ed and I'll go back into the market when the market is that hungry for a deal I can count it's ribs..................Unless of course the wife threatens to cut off my "sweet meats" coz she needs a house NOW :rolleyes:

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>> LL

My neighbour is a FTB`er.

The property in question is presently occupied by the owners who are moving to a new Westbury home in the next few days.

I presume that under Westbury`s part exchange scheme Westbury become the new owner when the present encumbents move into their new Westbury home but I could be hopelessly wrong in this assumption.

horace

If I really wanted to help the friend, I would go to Westbury homes with my property & see what they would offer me for a part exchange on my house. this would give a good idea of what they have accepted on the property they are trying to sell.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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