What is Part Exchange?

Key takeaways

Part exchange allows existing homeowners to sell directly to a developer, avoiding chains and fall-throughs.
The value of the sale is deducted from the price of your new home.
Benefits include no estate agent fees, faster completion, lower costs, and a stress-free process.

Buying made easy

Searching for your next dream home is an exciting time in life, but it’s not without its challenges. For many existing homeowners, the fear of a buyer pulling out of the sale and putting you back to square one can feel endless, even after months of progress. Thankfully, with new build developers, schemes such as part exchange can help buyers move into their new home without any risk of a chain collapse. This helpful guide explains what part exchange is, and why it is such a valuable option for homeowners across the country.

Part exchange scheme Sky-House Co

What is part exchange?

Part exchange is a great scheme, which offers existing homeowners the chance to sell their property directly to a developer. Once an assessment is complete, a price is agreed upon by both parties, with the value of the sale deducted from the purchase of a new build property. The best part is that a buyer doesn’t need to be lined up in order to move into a new home; it’s all taken care of by the developer.

Part exchange sales are designed to be entirely effortless and simple, ensuring the buying journey is breezy from initial contact to the eventual completion date.

How does part exchange work?

Part exchange schemes differ depending on the developer, but the process is typically similar and easy to navigate.

Step 1

The first step begins with your chosen developer, where you sit down to discuss the details of your property and its eligibility. The initial phase covers information such as the location, value, and status of your existing home, while also allowing you to browse pre-approved homes across a range of sites. Once given the green light to go ahead, the team will get to work and guide you through the next phase.

Step 2

The developer will act as the guaranteed buyer, so you know that your property has an assured sale at a much faster rate. At this stage, a valuation will be done on your existing home to offer a fair price, according to market value, with the sale value being put towards your new home.

Step 3

Once you’re happy with the offer and go ahead with the sale, you can then reserve your new build home! The developer will typically take care of surveys and costly fees during the process, so all you have to do is focus on packing.

Step 4

Upon sale completion, your new home will be ready to move into. Many developers will provide a transitional period between the completion date and how long you can take to move your belongings, allowing for a stress-free moving period.

What are the pros of part exchange?

There are many benefits of choosing a part exchange sale. Some of which include:

Guaranteed sale

Many would agree that the most stressful part of buying a home is the long journey, with no added security for sellers or buyers. Part exchange eliminates this fear, with a guaranteed sale offered directly from the developer.

No estate agent fees

With the developer as the direct buyer, estate agents can be cut out entirely. Some developers even take care of solicitors and surveys, potentially saving homeowners thousands during the sale.

No broken chains

Since there are no other parties involved during the buying process, the risk of a chain collapse is gone. This provides complete peace of mind for sellers, allowing them to move without any worry.

Quick and easy

A part-exchange sale is often far quicker to reach completion date, compared to a traditional sale. Where available, it also allows homeowners to downsize or upgrade to a higher-value property without great difficulty.

A happier experience

The home-buying journey is often rewarding, but there are many ways in which the process could be made more efficient. For existing homeowners who already have experience in the sales process, part exchange offers a joyful and effortless buying process.

What is the eligibility for part exchange?

Eligibility requirements differ depending on the developer, but typically they include:

The property’s condition must be structurally sound and up to a good standard.
The value must meet the developer’s threshold, which can be capped at 80% of the value of a new property; this can be a wider or smaller gap, depending on requirements.
The location and current property market factor into requirements, with developers needing confidence that the property can be sold.
The onward purchase must be a new build home from the developer.

Confidently sell your home with Sky-House schemes

Sky-House offer existing homeowners so much more when purchasing a new home with us. Our part exchange scheme features no estate agent fees, a guaranteed buyer for your home, a week-long transition period, and no need to find a home that’s of greater value than your existing property!

Whether you’re looking to expand or want something a little more cosy, we have sustainable homes suited for all phases of life. Our experienced and friendly sales team are on hand to clearly guide you through the entire process. Thinking about selling? Get in touch with a member of our team to learn more about part exchange.

Get in touch Sky-House Co

Choosing a Sky House really was the best decision. My Sky House is completely different to all new build homes and that's why I love it. Hassle free with all the extra details. Of course, the economic values are great but the roof terrace is the perfect touch and my favourite part.

Resident at Fox Valley

I love the sense of space and light. I like how every part of the house has a purpose and feels different in its own right. I think one of my favourite spaces is the landing. It could easily have just been an after thought - but I like that it feels like an extra little room to sit and read or just chill in.

Resident at Oughtibridge Mill