8 Benefits of Part Exchange in a Subdued Property Market

Has the cooling house buyer’s market been making you perspire with anxiety? An uncertain property market with low customer interest and very few inquiries is a natural cause for concern.

Fortunately, however, part exchange (PX) services can help you drum up enough business to stay productive even in an unproductive market.

In this post, we will review the eight ways PX can benefit you as a house builder or seller.

1. Attract more customers.

One of the most important benefits of offering PX is that it will attract more house buyers to your services. It’s an added convenience that not all house builders can offer. Those individuals who are interested in shopping for a new property at this time will be more interested in your listings if you can also offer them PX.

2. Stand out as the top seller among your competitors.

The competition gets even more fierce when there are many sellers vying for the business of a limited number of buyers. When you have PX to offer your potential customers, you’re offering them an experience of higher value so they will be more likely to choose you as their seller.

3. Make your customers excited to buy.

People may lose interest in buying a new home when they experience the frustration of trying–unsuccessfully–to sell their current home. PX is the perfect way to help your customers break out of the housing chain and it helps them maintain their enthusiasm for moving ahead with a purchase.

4. Enjoy reduced sale fees.

Selling a home in part exchange can mean getting less for it than if you put it on the market. But did you know that the price difference is really insignificant? 

Try an online calculator like this one to compare a discounted offer with the total of a house sold via an agent. The discount is quite small once you realise that selling with an agent can incur additional fees plus VAT. There are no additional fees with a PX purchase, however. 

5. Close more sales and stay out of debt. 

PX will increase the rate of sales on-site and where the development is leveraged, it will enable you to repay the debts earlier. This enables capped debt facilities to be revolved on to the next site.

6. Avoid budget capping.

By outsourcing PX, you can offer it as often as you need to without being limited by your budget.

7. Help buyers downsize without paying the value differential.

It’s easy to provide PX to your customers who want to downsize when you outsource the task. A third party company will buy just about any property from your client even if the new property is of lesser value.

8. Get your house builder off the site early and save money.

PX can facilitate an early exit for your house builder which can reduce the overhead costs associated with on-site presence.

Experience the full benefits of outsourcing PX and watch your housebuilding business grow despite the current market slump. 

For more tips on incorporating part exchange into your house offers, contact HBB Solutions.