Too many housebuilders and estate agents actively avoid part exchange (PX) because they feel that it’s an unnecessary, risky or unprofitable hassle.
If you’re a builder or agent who’s inexperienced in part exchange for similar reasons, then you could be missing out on the benefits of PX. You might even be losing business because of not offering part exchange.
How not offering or outsourcing PX affects your business
Not offering PX amounts to missed opportunities to sell homes. Since your business depends on successfully selling houses, then not having a PX provision means that your business isn’t doing as well as it could be.
Here are a few ways that ignoring the benefits of PX will impact your business.
Customers will choose to buy from your competitors.
There are potential buyers out there who research their property purchase funding options and look for sellers who offer PX. If that’s not you, then you’ll miss out on their business when they visit your competitors.
You’ll sell fewer properties.
PX allows you to market every new home and second-hand unit on your register. You’ll be more likely to find a buyer for every property that you want to unload. You’re missing out on this business advantage if you don’t offer PX.
You’ll win fewer instructions.
Offering an outsourced PX service as a tool at market appraisal is an effective way to win instructions.
Budget limitations can prevent you from promoting PX.
Even if you do appreciate the benefits of PX, your budget caps may limit how often you can offer the service to your customers. Outsourcing PX allows you to promote this convenient service to all of your potential buyers. But if you don’t outsource the service, then you may be missing out on many opportunities to sell and earn a profit.
Your bottom line could suffer from value differentials.
If you try independently offering PX, then you might not have sufficient funds to extend the service to all of your customers who need it. Your business may not be able to afford the value differential of purchasing a client’s home and applying the value to a smaller house of lesser value. That is, in fact, why most housebuilders won’t take a second-hand property into PX if its value is greater than 70% of the value of the new unit.
How to increase your business with PX
Despite the challenges of an uncertain house buying market and tight property development budgets, PX remains an important tool for both housebuilders and buyers alike. Actually, PX is indispensable because of these challenges.
Now is the perfect time to boost your business by promoting part exchange.
Outsourcing PX to a third party is the best way to take advantage of the benefits of part exchange minus the hassle and the expense.
Boost your housebuilding business by contacting HBB Solutions.
We make the PX process simple and rewarding for you by:
- Buying virtually any property, even ones that would have large value differentials for you
- Repairing property chains and unlocking income for you that could be locked up in those chains
- Offering a referral commission on every property purchased, if you’re an estate agent
Are you ready to discover all the ways outsourcing part exchange can benefit your housebuilding business?
Contact HBB Solutions today to get started.