Selling your current home can be an obstacle for many looking to move. The process can be lengthy – you may experience low demand for your current home or broken property chains that can hinder your plans to move on. Therefore, this raises an interesting question: should I sell my home before I buy my next home?
Here, Ella Pumford from St. Modwen Homes, helps to explore the topic of part exchange. We answer your most commonly asked questions and explore how you can make your home-moving experience not only easier but also more enjoyable.
What is part exchange on a house?
Part exchange refers to the process of trading some or all of your property’s value in order to buy a new-build home. By doing this, the housebuilder will buy your home from you. This means the equity can then be used from the sale to help you purchase the new property.
It’s a popular idea for those who are looking for a hassle-free sale because it means the sale is guaranteed, quick, and without any of the fuss of having home viewings and dealing with estate agents. In fact, searches for the question ‘What is part exchange on a house?’ have increased by 118% in the past year, showing how many more people are now interested in this way of buying.
How does part exchange work?
The process of part exchange can depend on your location in the country and who you do the exchange with. However, where you are allowed to part exchange, the process is usually similar.
Ella Pumford from St. Modwen Homes explains the process: “Part Exchange is perfect for customers who want to take the hassle out of buying and selling at the same time. Our part exchange scheme allows people to buy a new home at one of our developments while selling their existing home to us, meaning there’s no waiting around for a buyer.
“During the process, we obtain up to three independent valuations on your existing home. These are from trusted estate agents. We’ll then agree on a fair price for your property with you.
“The bonus is in the convenience - we remove the hassle of selling your home. Due to us taking care of the whole selling process, you’ll have no estate agent fees to pay and no risk of any broken chains delaying your chance of moving into a beautiful new home.”
So, should you actually do a part exchange?
Well, there are benefits and things you may want to think about – as there is with any house sale process. Today, people want to know the benefits of part exchange more than ever. Google searches for ‘Are part-exchange homes a good idea?’ have increased by 260 per cent between 2019 and 2021. The real positive with part exchange is the convenience. As explained, there’s no estate agent fees and no risk of broken chains. In essence, the sale of your home is quick and hassle-free.
There are a few factors that may make selling privately difficult and can mean you lose the chance to live in your new dream home. For example, demand for new-build houses can be high, and if demand for your existing house doesn’t match this, you may miss the opportunity to secure the plot you want. Also, your new-build home may not have been built yet. The part exchange allows you to secure the plot and then live in your existing home until you’re ready to move.
Ultimately, it depends on your circumstances and how convenient you want your moving process to be. If you’re looking for a stress-free sale you’re after an in-demand new-build, then part exchange gives you a serious advantage.
