JANE Pearce (pictured below) from Devonshire Homes explains the growing popularity of part-exchange.
For many households, moving up the property ladder is a stressful challenge.
A buyer may have found a house to move into but, without a purchaser for the existing property, it is impossible to complete.
Add the effect of a slow housing market and the situation can seem never ending.
Changes in the mortgage market have seen property developers more inclined to include bigger family homes within their developments to feed the demand for second-time buyers.
Aware of the difficult circumstances these buyers are facing, some developers are offering these family homes through a part-exchange.
Part-exchange offers buyers the chance to trade in their existing home as part-payment for the new build.
Effectively the developer purchases the existing property, releasing the potential new buyer from the constraints of the property chain.
The benefits are obvious; compared to an open market sale the whole process is speeded up, the stress of a chain is wiped out and you could avoid an estate agent's fee.
Buyers find the biggest value of part-exchange is that it offers a fast track option to selling your house in a market that could otherwise have you waiting months if not years to move.
Devonshire Homes has just introduced the concept to select properties within its Rumsam Meadows development on the outskirts of Barnstaple.
The developer will arrange for at least two independent valuations of your existing home and will make an offer based on these valuations. Each price is agreed on the merits of the home, taking into account the market value and that of other properties in the area.
Terms and conditions apply. For various reasons not all homes will be suitable for part-exchange as there are stipulations about the value and the type of property according to the property developer.
