Part exchange offers on new houses
Part-exchange works like this. If you wish to purchase a brand new home then under certain circumstance the developer will buy your existing home, thereby eradicating any chains - or more specifically, any possibility of broken chains.
The typical offer is around 90 - 95 per cent of the market value of your current home, but it's a guaranteed sale, it usually happens fast - sometimes you can move within 1 month. You will also save estate agency fees.
Developers will usually only consider offering you part exchange if the value of your existing property does not exceed around 70 per cent of the value of your new home (the exact percentage may vary). Your existing property must also be in good condition. If there is a problem with your existing house , eg, it has structural faults or is un-mortgageable then you will not be eligible.
As with everything else, of course, there can be downsides, the main one being financial - there's the chance that you won't be happy with what the developer offers for your current property. The valuation you receive is based on a quick sale, so it's likely to be less than the full market value.