Part Exchange Houses: How Does It Work & Is It Worth It?

There are a number of ways you can sell a property. There are the obvious – appoint an estate agent or try your luck at an auction – and there are the lesser explored. Part exchange property is one of them.

In this blog we answer the most commonly asked questions on the matter, helping you to decide if you should trade a house.

Q. What is part exchange house?

A. Traditional part exchange property is when you agree to trade a house for another without using an estate agent or selling on the open market. Think of it this way: you’re directly exchanging one property for another. Part exchange is a way of moving home usually offered by house builders, but it’s also a service offered by professional part exchange companies and cash buyers, including Open Property Group.

Q. How does part exchange work?

A. Firstly, let’s explain what happens when you part exchange property with a house builder.

• Find out if the house builder offers a part exchange scheme and if so, what developments and properties it applies to
• Meet with the sales staff and let them know the particular new home you’d like to buy
• Prepare to have at least two estate agents come in and value the property you need to sell
• Understand the agents will give a ‘selling price’. This differs from an asking price as it will be a low figure that allows the house builder to sell your home in a couple of weeks.
• Agree to the valuation figure, which may be lower than you expect as it is designed for a quick sale
• The house builder buys your property from you and you arrange a mortgage to purchase one of their new homes
• The conveyancing process starts and proceeds in the traditional way but it will be faster as there is no chain above or below the new home

Q. What are the benefits of part exchange?

A. Although when you part exchange property it may result in a below-market sales price, there are benefits. You will avoid the open market, skip the need for a ‘for sale’ sign and viewings, avoid gazundering and experience a fast house sale due to a shorter chain and the house builder not needing a mortgage to buy your home. Additionally, as you avoid using an estate agent, you won’t have to pay estate agent’s fees.

Q. Are there any downsides to new property part exchange?

A. We have already mentioned that the house builder will make you an offer for less than what could be achieved on the open market but there are other drawbacks. When you trade a house with a house builder, you are obliged to purchase one of their new homes - the choice could be limited and brand new homes usually carry a price premium. If you choose to buy a property off plan – that’s before it is built – you are also at the mercy of the construction schedule. The house builder may be unable to stick to the forecast completion date if there are building delays.

Finally, it is possible a house builder will reject your request to part exchange property based on your home’s address, condition and current value, so don’t have your heart set on a new home.

Q. Can I part exchange property with a cash house buyer?

A. Yes! A professional cash house buyer, such as Open Property Group, can take the place of a house builder in the part exchange process, allowing you to sell your house quickly but with much more flexibility.

When you trade a house with Open Property Group, you will enjoy more freedom as well as a fast house sale. The valuation process is the same as with a house builder, and you’ll also:

• Avoid estate agents and their fees + Open Property Group will also pay your legal fees
• Trade a house in any condition and of any value, anywhere in England and Wales
• Gain peace-of-mind that you have a guaranteed buyer that won’t pull out or mess you around
• Sell in a much quicker timeframe than the open market – complete in an average of just 41 days, or set a schedule that suits your onward purchase
• Enjoy the option of timing your move precisely, becoming an attractive cash buyer with no chain below you
• Choose to buy any property anywhere, and not be restricted to a new build one
• Gain the support of an independent part exchange and property sales team

Open Property Group would love to be your part exchange property partner. Our team is waiting to explain how this could work for you – especially if you need a guaranteed fast house sale. Contact us now to trade a house and get your move off to a quick start.