Simply put, the new house is paid for by transferring ownership of the buyers existing property and a cash top-up – usually a minimum of 30% of the complete deal. So if the new house is valued at £100,000, the existing property should be valued at £70,000 or less and the cash payment would be £30,000 or more. The housebuilder then sells the PX property, recrewing the rest of the payment when the sale completes.
The whole process hinges on an accurate, realistic valuation of the existing property and that is where Moving Made Easy starts.
Our comprehensive Property Valuation Appraisals are based on the findings of up to three local estate agents, exhaustive online comparisons of similar properties in the area and a study of the Land Registry Data for the relevant postcode. We take into consideration the pros and cons of the area, the condition of the property, the location – anything that may affect the desirability of the house in question. All that information is collated in our reports and then presented to you and your potential buyer for consideration. The fair, unbiased and realistic valuation can then be used as the basis for the Part Exchange Proposal and, once the figures are agreed, the sale of the new property can proceed very quickly. To see a sample of a typical Property Valuation Appraisal click here.
Once the existing property has transferred ownership we immediately start to market it using a tried and tested multi-agency approach ensuring you get the value we suggested as quickly as possible. On average this approach finds buyers in half the time a traditional single-agency achieves and we usually get the value we predicted – if not a little more.
It’s not unusual for customers to have unrealistic expectations of what their existing property will fetch on the market, especially if they have been talking to estate agents directly. In the event that our valuation is not acceptable to the homeowner, we suggest that they set the asking price they prefer and we take their home to market at that level. If, after six weeks the property has failed to sell or has gained little interest, the price is then dropped to the one we originally proposed. This does mean a short delay on the progress of the sale of the new home but ensures happy customers who are confident that they have not been short-changed in any way and is generally acceptable to the housebuilder.
If you’re building retirement homes, it’s likely that your customers are down-sizing from a larger family home which could mean the value of their existing property is more than the value of the new one. In this case, the cash balance owed to your buyer gets paid once their old home is sold or within a specified time period – whichever comes first. It means they can take residence in the new property quickly. As before the process hinges on an accurate, reliable valuation agreed by all parties.
Whichever Part Exchange type you choose, once a proposal has been accepted, the team at Moving Made Easy take over the marketing, negotiation and progression of every aspect of the sale of the existing property, freeing your teams up to make more plot deals. You and your customers will be kept informed every step of the way with detailed weekly reports (click here for a sample), listing all the activity that has taken place. We’ll check and monitor every part of the chain of sales, liaising closely with buyers, estate agents and solicitors to avoid delays.