Quick Move Properties’ revolutionary part exchange service has a huge impact on your sale figures, but it can also require significant risk if you choose to offer it as an in-house service
Whether you’re a large builder who wants to minimise your financial risk, or a small to medium sized developer who doesn’t have the large balance sheet required to offer part exchange directly to your clients, Quick Move Properties – the UK’s largest independent part exchange provider – says it can help, by offering an independent, third-party part exchange service at no financial risk to your company.
Part exchange can benefit new home builders in several ways:
Guaranteed sales: Tying your customers into a purchase through part exchange gives you peace of mind that the sale is secure and will not fall through at the last minute.
Conversion of potential customers into proceedable buyers: Part exchange can convert potential customers into proceedable buyers by removing the risk associated with being in a property chain. Your customer will be free to buy your unit quickly, without hassle, and on a date that fits in with your financial targets throughout the year. Being able to offer part exchange also reduces the chances of losing your customer to a competitor who is able to offer a more attractive incentive.
No chain: With only Quick Move Properties below your buyer, you don’t need to worry about the usual issue of buyers dropping out further down the chain. This enables you to focus on selling more new homes, rather than spending precious time chasing a sale through.
Express completion: If your new home is ready for immediate occupation, Quick Move Properties can complete a sale in as little as 7-14 days.
High volume purchases: With a vast amount of experience in the property sector, Quick Move Properties are well aware that sales at certain times of the year are more critical than others. Practised at handling high volume purchases, Quick Move Properties can support your sales requirements for half year, year end and any other busy periods.
Control completions and cash flow: Part exchange allows you to fix completion dates and budgets, meaning you’re no longer dependent on issues associated with a general sale and property chain.
Flexibility: As a third party, independent part exchange provider, Quick Move Properties are able to offer a considerable amount of flexibility and are happy to adapt the service to best suit your business.
Part exchange can increase sales of your new homes, offer more proceedable buyers and bring an end to chain issue delays.
Patrick Chambers, Sales Director at Quick Move Properties, explains: “Offering a part exchange service has several benefits for a new homes builder; it removes the risk that a sale will fall through due to chain collapse, it frees your customers up to commit to a purchase – helping to convert potential customers into proceedable buyers – and, because we use our own balance sheet to make the purchases, we are able to offer a great deal of flexibility. Part exchange also allows you to decide on your own timescales; if units are immediately available we can complete in as little as 7-14 days, or completion can be flexibly timed to best meet the needs of you and your customer.”
Q&A with Patrick Chambers of Quick Move Properties
Capitalise on buyers early enthusiasm, tie them into a sale and speed up the return on your investment, says Sales Director, Patrick Chambers.
What are the benefits of part exchange?
Part exchange allows developers to capitalise on the enthusiasm that buyers feel when they are viewing the home, tying them into a sale on their property and minimising the risk of losing them to a competitor. Cash flow is king in the building industry and part exchange speeds up the return on investment.
The benefits to the buyer are speed, convenience and certainty; they are able to secure their dream home without worrying about estate agents, viewings, negotiations or the risk of a sale falling through.
What types of properties are suitable for part exchange?
Traditionally developers have only been able to provide part exchange schemes to cover local properties where the buyer was trading up, but using a third-party provider means developers can offer part exchange on all types of property in any location.
Quick Move Properties will part exchange flats, bungalows, terraced, semi-detached and detached properties, long leasehold and ex-local authority housing and high or low value residences anywhere in England and Wales. Last year we bought properties for as little as £20,000 and as much as £1,000,000.
What kind of buyer benefits from part exchange?
There are two main groups of buyer who benefit from new home part exchange. The biggest group is aspirational buyers – those who’ve found their dream home and want to move quickly.
The second largest largest group is retirement age people who are downsizing. They tend to use part exchange to avoid the stress and uncertainty of selling on the open market. They find viewings, negotiations and all the associated worry upsetting and really appreciate the ease of the service.
How can sellers ensure they
receive the correct valuation?
Sellers need to ensure that valuations are being done independently, and with all relevant detailed information, in order to guarantee that their part exchange offer is fair.
Quick Move Properties obtains valuations from two local, independent estate agents, conducts in-depth research into the local property market and prices, and asks a RICS surveyor to provide a valuation.
Why do you think part exchange continues to be popular with house-builders?
Part exchange is major incentive for house builders to use, as it turns potential customers into guaranteed, proceedable buyers; increasing the number and speed of completions.
While lots of other marketing schemes, such as discounts and furnishing packages, encourage people to buy, part exchange is unique in that is actually enables people to buy and ties them in to purchasing one of your units.
In order to avoid accruing too much second hand stock, many large house builders establish a limit on their balance sheets, and when it is reached they will stop using in-house funds to buy part exchange properties. At this point a third party provider such as Quick Move Properties can step in.
Smaller house builders tend to work entirely with third party providers as they do not wish to take on any unnecessary risk.
Do you think part exchange will continue to be used in the future and why?
As house-building increases to meet the Conservative Government’s high targets, we expect the use of part exchange to increase across all sectors of the industry in the coming years.
Traditionally, part exchange was only really offered by volume builders, but smaller developers are increasingly seeing the benefit of part exchange and we expect this area to see significant growth.
Both part exchange and Help to Buy are great incentives to help house builders increase unit sales but sadly there is a misconception that only one of the schemes can be used at a time. It is true that a builder cannot finance part exchange on a house that is being bought using Help to Buy, however, a third party provider can provide a part exchange service in this circumstance.
About Quick Move Properties
Quick Move Properties is the UK’s largest, independent part exchange provider. When part exchange was pioneered by the main house-building companies, Quick Move Properties began to offer its service to the small and medium players in the industry – those who wanted to offer part exchange in order to increase sales but who didn’t have the balance sheet to support it. Increasingly, the larger house builders are also starting to take advantage of the service in order to limit the amount of risk they hold.
Quick Move Properties offer risk-free, hassle-free, guaranteed part exchange, with the aim of helping new home builders to increase their sales.
The company is happy to purchase properties of any age and in any price bracket, in England and Wales. They can buy all types of property; houses, flats, bungalows, detached, semi-detached and terraced properties, as well as long leasehold and ex-local authority properties of both high and low value.
For more information contact Quick Move Properties on: 01793 840917 or visit: www.quickmoveproperties.co.uk
