Question:
Online Enquiry
An enquiry has been made on the Property Price Advice website with the following details.

Full Name:
Jeanne – Bristol

Enquiry:
I’d like your opinion on ‘trading in’ my 3 bed semi for a new build.  Would I be doing this at the right time?  I would also like to know more about any hidden costs or possible pitfalls of doing this via a builder.

Answer:

Timing is always an issue in any property situation and never more so on new builds with the election looming in 2010 however that shouldn’t affect a part exchange deal undertaken now as most builders part exchange where the home being traded in is no more than 70% of the selling price of the house/plot being purchased ie:  the same % applies regardless of the current market value.

A few things to watch out for are:
1) Check the limit that the builder will offer i.e. there’s usually a maximum value for your current property.
2)Be aware that at least two (2) independent valuers will value your home at what it is likely to achieve in the current market i.e. not an advertised sale price and the offer is likely to be an average of those.
3) If you cancel the deal after introduction of a buyer by the builder for your own home you can still be liable for the fees involved so check first.
4) The builder will ask for a retention bond/deposit against the condition of your old home and accurate meter readings from utilities companies of around £500

Having said that doing a part exchange for a newly built home is one of the better ways to achieve the home you want in a deflated market where selling your own home is difficult.  It provides you with a guaranteed purchase, you can move in when your new home is ready and, more often than not you save on expenses as newly built homes are economical and efficient in terms of energy saving and maintenance giving you peace of mind too!