Dealing with part exchange is confusing, especially when you have absolutely no idea how it works!
Zoopla Q&A user Teolis put forward the question – Confused, how does part exchanging your house for a new build work?
We go into full depth on how the process can work for you.
I often get asked this question what is part exchange. Part exchange is generally where you decide to part with your property, you may be buying a new home and you’ll top the rest of the balance up with a mortgage or cash.
Or, you decide to buy second hand property, where you decide part-exchange. You might downsize, might upsize or there might be a cash transaction again applicable.
Generally speaking in the new housing market if you decide to go for part-exchange you will not get full market value for your property. You will get a value that is less than what the market value is.
The builders will give you the full market value you’ll receive but they’ll offer you no discount on the new build that you’re buying.
So they’ve got a margin that they need to factor in, in order to take your property in for part exchange.