As more individuals are turning to part exchange schemes to sell their homes, it is time to understand why this scheme is so popular and what its benefits are.
The process of buying and selling a house is an ancient practice that throughout the decades has adapted in order for it to be easier for consumers to gain access to a home. Mortgages, mezzanine loans, and bridging loans are just a few ways that help a variety of buyers attaining or selling a property they desire. As types of buying and selling methods can be quite time consuming, developers and homeowners alike have been turning to quicker means in order to sell and gain access to a house earlier. On top of this, selling a house is known to be a very hard and an unreliable process. It is common for house chains to fall apart as buyers pull out. Therefore, new selling methods are becoming more popular to ensure the reliable selling and acquisition of a house. One of these methods is known as the part exchange method. When people think of part exchange, usually what comes to mind is the buying and selling of cars. However, this process is also applied to the housing sector. Thus, this feature will evaluate the part exchange housing scheme, how it works and the benefits of using this type of process to sell a house.
What is the Part Exchange Scheme?
Though this type of property scheme has become more popular in recent years, part exchanges have actually been around in the property world for a few decades now. A part exchange homes scheme is defined as when a seller trades the value of their current house against a new build property. In turn, the property serves as part payment for a new-build house. The key difference with part exchange is that a property developer takes the place of the estate agent in a way. Therefore, the seller will be dealing with the development company that puts up the new-build houses instead. This means that the selling will help avoid the need to repair a property chain and means that the individual will own a brand-new property.
Many prefer this type of selling method because the sale of their property is seen as a greater guarantee. Furthermore, many major developers in the UK offer part exchange schemes but the terms and conditions are known to vary depending on the company. Sellers are warned to read contracts with developers’ schemes carefully before committing to a part exchange.
How does it work?
Of course, negotiations with buyers are typical of a part exchange scheme, and any property selling scheme in general. With part exchanges, this negotiation will occur with the new build property developer. The developer will agree to the price of the house to help smooth the way to seal the new-build property. Many developers will claim that they will offer a fair price under these types of schemes based on the current market value. However, those who participate in part exchanges should really expect less than the market value of their house, as developers desire to make a profit.
Read more of the article here: January – February 2022 Issue Form – Show Home Magazine (yourshow-home.com)
Media contact
Roshini Bains,
Editor, Showhome Magazine
Tel: +44 (0) 1622 823 922
Email: editor@yourshow-home.com
