If you’re a builder, developer or estate agent, offering a part-exchange (PX) scheme to your clients can be a great way to attract new business and avoid problem property chains slowing down sales.
But many people are unaware of PX, uncertain about what it is or wary of exploring this option for fear of losing money on their home.
Our team of property experts at HBB Solutions have put together this simple guide to the benefits of part-exchange to help your clients understand why PX could be advantageous for them. Increased client awareness of part-exchange can boost sales, reduce delays and lead to high levels of customer satisfaction.
Why Should Your Client Part-Exchange Their Home?
A guaranteed sale. With up to half of all house sales in England and Wales failing before completion, a guaranteed sale is a rare and precious thing. House sales can fall through for a number of reasons — failed mortgage applications, a poor survey, or simply because the buyer or seller changes their mind.
With part-exchange, as soon as the homeowner and the developer agree on to the deal, the sale is guaranteed. Compared to selling on the open market — which can take months or even years — this is a huge benefit. Waiting for a house to sell, enduring endless viewings and potentially dealing with failed sales can be extremely time-consuming and stressful. In a Nationwide survey, selling a house was voted the most stressful life event. Homeowners can avoid this stress with PX.
No estate agent fees. Traditional high street estate agents charge the seller a percentage of the sale price, typically 0.75% to 3%. Online estate agents are more cost-effective, as they charge a one-off upfront fee, which often works out to be considerably less than a percentage of the sale price. However, neither can compare to PX, which does not require the services of an estate agent, so the seller incurs no agent fees.
A part-exchange deal is agreed directly between the homeowner and the developer they are selling to and buying from.
No risk of a broken property chain. One of the most common reasons for a house sale to fall through is the property chain breaks because a buyer cannot sell their home or cannot secure the mortgage they need. Unless a seller is lucky enough to find a first time or cash buyer and have the means to buy their next home outright, they’re likely to be part of a property chain that could involve numerous houses. If just one fails, the others fall like dominoes.
Part-exchange allows a homeowner to avoid the dreaded property chain altogether. They sell their home directly to the developer of the property they are buying, which means the homeowner has none of the stress, uncertainty and delays of being in a chain.
A fast and simple transaction. Selling a home via a part-exchange scheme is much quicker than selling the traditional way. The same two parties are involved in selling the homeowner’s existing property and purchasing the new one. Selling and buying are part of one deal.
Additionally, no-one is waiting to move into the house being sold and no-one currently occupying the new-build property. All of which makes PX a great option for people who want to move quickly. A PX house sale can complete in a matter of weeks, whereas the average time for a house sale to complete on the open market is over four months.
Things to Consider
Part-exchange is only available for the purchase of new-build properties and not all property developers offer a PX scheme.
Partnering with HBB Solutions to offer your clients part-exchange can give your business a competitive edge and attract new clients. Part-exchange is particularly popular with people seeking a retirement property. Tap into this lucrative market by contacting us and taking the first step to set up your PX scheme. We can facilitate the entire PX process during your next direct property purchase. Rest easy knowing the exchange is in capable hands and deliver an excellent service to your clients.