| If you listen in on conversations taking place in kitchens, | | | | buying companies do. However, there are a number of |
| pubs and workplaces around the country, property is | | | | advantages of part-exchanging your home with a |
| always one of the hottest topics. With the slowing of | | | | house buying company over a house builder: |
| the housing market, one aspect of the subject that is | | | | 1. House builders will only buy certain types of house. |
| increasingly being discussed is the incentives offered | | | | For example, most will not buy ex-council or leasehold |
| by house building companies to tempt potential buyers. | | | | properties. Most house buying companies will |
| The incentives are an attempt to lure in potential | | | | guarantee to make an offer on any property. |
| buyers who, with talk of an imminent dip in prices, are | | | | 2. Many house builders will not buy out of area; that is, |
| reluctant to splash out on a new home. House builders | | | | not outside of the area where the customer is buying |
| have responded to this with an array of sweeteners | | | | the new build property. Many house buying companies |
| to make the prospect of purchasing a new build | | | | are national companies, and will make an offer on |
| property with firms like Barratt and Wimpey more | | | | properties in any area. |
| alluring. Examples of this include: giving away free | | | | 3. House builders have a finite amount of |
| carpets and curtains with every house; paying the | | | | part-exchanges they will do in a year: when their quota |
| buyer's stamp duty and paying the buyer's mortgage | | | | is full, they will not do any more, limiting the options of |
| for one year after moving in. | | | | people wanting to part-exchange. Some house buying |
| Some of these incentive ideas are relatively new, but | | | | companies have an annual turnover exceeding |
| one of the older ones is for the house builder to offer | | | | £70 million and are always ready to buy homes. |
| a property part-exchange. This is where someone | | | | 4. In order to qualify for a house builder's |
| who wants to move into a new build house buys a | | | | part-exchange, movers need to move upmarket and |
| house from the builder but also sells their current house | | | | buy a home that is worth at least 30% more than the |
| to him (or her), for a below market value amount, thus | | | | value of their current home. Most house buying |
| part-exchanging their property. | | | | companies have no such restrictions. |
| At first glance, this might seem similar to what house | | | | |