Part exchange is a process where you trade your current property as part payment towards buying a new one. Typically, house builders act as the buyer of your old home and sell it later. This method avoids the need for estate agents, viewings, and chains, often speeding up the buying and selling timeline from several months to just a few weeks. The builder usually offers 80-90% of your home's market value because they take on the risk and costs of reselling it. After valuing your current home, if you accept the offer, the builder buys your old home while you purchase the new one, often simultaneously, making the transition smoother and faster. Key aspects of how part exchange works:
- You express interest to a builder offering part exchange on new homes.
- The builder assesses if your home qualifies based on value, condition, and location.
- Independent experts typically value your home with photographs and measurements.
- The builder makes an offer, usually less than full market value.
- If you accept, paperwork for both properties begins, and the exchange completes usually within weeks.
- You avoid estate agents, fees, viewings, and chains.
- You can stay in your current home until the new one is ready to move into.
Part exchange is popular with large builders and is a helpful option for sellers wanting a quick, guaranteed sale and a streamlined home buying process without the stresses of a traditional sale.
