Part exchanging property can seem like an absurd idea. After all, this isn’t a car we are talking about. It’s real estate. But, there has been an increase in more homeowner’s part exchanging their homes. Why? The reason is simple. There are a plethora of financial benefits for doing so. Many homeowners want to see the cash benefits of doing so.
If you are new to the world of part exchanging property, then you need not look any further. This beginner’s guide to part exchanging property will give you the lowdown on this complex subject.
What is Part-Exchange?
In some instances, a homeowner may look at moving up the property ladder. If so, they can use their existing property as a form of payment towards their new home. This means that instead of gathering the money to fund a move, they can use their current property as a deposit. The process of moving home can be laborious and time-consuming. But, a part exchange house means that processing times are reduced. What is more, there is a guaranteed sale at the end of the tunnel. For those without the cash readily available, this is an excellent way to secure the home of your dreams.
The Advantages of Part Exchanging a Property
Aside from the reduction in time, there are other benefits to part exchanging a home. For many homeowners, they are keen to cut out the middle man. This means that they have no estate agent fees. This can eat up a whopping 2% of the property value. The reduction in time processes means that a homeowner doesn’t have to wait around for the property to be sold. The lack of ‘chain’ that is usually associated with selling property is a definite advantage for many. The transaction, on the whole, is smoother. The sale of the property is guaranteed. This gives many homeowners peace of mind when they want to move. After all, no one wants to be caught up in the property game. A simple operation is sometimes just what is needed.
Are There Any Disadvantages to Using this Kind of Process?
If you want to maximise the profit out of your home, this may not be a scheme for you. By undergoing a part exchange scheme, you may lose up to 20% of the total value of your home. But, if you want to speed up processing times and cut out the middle man, this is the perfect solution for you.
For those that are keen to experience this kind of plan in order to move home, you need to check your credentials. Not everyone is eligible. When you decide to undergo this process, you need to make sure that your home is in a good state of repair. After all, your home needs to be a viable candidate. If there any concerns with your property, it may be advisable to fix them before taking on this kind of scheme. What is more, you need to ensure that you are not in a mobile home. These are not accepted via the part exchange route. You should also make sure that your new home is not more than 70% of the value of your existing home. This is so that you don’t lose out financially.
Categories: Real Estate