If you’re thinking about moving into a new build home but you already own a property, the process of selling up and moving can feel daunting. One option worth exploring is part exchange, so here’s what you need to know.

What Does Part Exchange Mean?

Part exchange is a scheme offered by some new build developers that allows you to put the value of your existing home towards the purchase price of a new one. Rather than selling your property independently on the open market, the developer effectively buys your home from you as part of the transaction.

It’s a concept that’s been around for a long time in the car industry and works in much the same way when applied to property.

How Does Part Exchange Work?

While the exact process varies between developers, most schemes follow a similar pattern. Once you have identified a new home you’d like to buy, the developer arranges for independent valuations of your existing property. Based on these valuations they make you an offer. If you accept, the developer takes on your current home and you proceed with buying the new one, with the value of your old property offset against the purchase price.

It is worth knowing that the offer you receive may be slightly lower than what you might achieve on the open market. Developers factor in the cost of marketing and selling your property themselves, so the offer reflects that. For many people though, the certainty and simplicity of part exchange is worth more than achieving the highest possible price through a traditional sale.

What are the Benefits of Part Exchange?

The appeal of part exchange comes down to a few key things:

It Removes the Chain

One of the most stressful parts of buying and selling simultaneously is the risk of a chain collapsing. With part exchange, that risk largely disappears because the developer becomes your buyer.

It Gives You Certainty

You know what you’re getting for your property and you know your move is happening. There are no fall-throughs and no last-minute renegotiations.

It Simplifies the Process

Rather than juggling two separate transactions with different agents and timelines, part exchange brings everything under one roof.

It Lets You Focus on What Matters

Planning a move into a brand-new home is exciting. Part exchange means you can focus on that rather than the stress of selling.

Is Part Exchange Right For Me?

Part exchange is not the right fit for everyone. Here are a few things to consider before deciding.

It could be a good fit if:

  • You are prioritising speed and certainty over achieving the maximum possible price for your current home
  • You want to avoid the risk and unpredictability of a property chain
  • Your existing property is in reasonable condition and likely to be straightforward to sell
  • You are buying a new build from a developer who offers the scheme

It may not be the right choice if:

  • Getting the highest possible price for your current home is your main priority
  • You are happy to take your time and test the open market
  • Your existing property falls outside the eligibility criteria set by the developer

It is always worth checking the eligibility criteria early on, as most developers set conditions around the value of your existing property relative to the new home you are buying.

Part Exchange with Orion Homes

At Orion Homes, we offer a part exchange scheme on selected plots, designed to make your move as smooth as possible. Before exploring part exchange, our Sales Advisors will always talk you through our Assisted Sale scheme first, which can often be an equally stress-free way to move without the need for a traditional chain.

If Assisted Sale isn’t the right fit for your situation, part exchange may be an option depending on the plot you have in mind. Speak to one of our Sales Advisors who will be able to confirm what is available and talk you through the next steps.