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Part Exchange House Pros And Cons

Property Saviour » New Build Homes » Part Exchange House Pros And Cons

Part exchanging has pros and cons just like any decision in life.

Before you fall in love with a newly built home, you’ll need to be informed about the new build premium, the under-valuing of your old home, and what are the alternatives.

Table of Contents

What is house part exchange?

House part exchange provides you with a guaranteed sale for your current property. The sale will be coordinated with the purchase of your new home, so your move is easy and fast.

How does house part exchange work?

Part exchanging your property can be a fast, easy, and stress-free process.  However, this isn’t always the case.  

If all goes well, here’s what you can expect:

  • Get in contact with the part exchange company and provide them with details about your current home.
  • They will arrange for an independent local estate agent to assess your property and make you a formal offer.
  • Once you’ve decided on a completion date (depending on the purchase of your new house and when the build will be finished), the cash will be paid directly into your bank account.
  • Both new build developers and property part exchange companies offer part exchange services. Although the process is similar with both, the eligibility criteria will vary.
  • Developers tend to have very strict criteria for part exchanging a house, and it is usually only available when buying certain new build plots.

Part exchanging through a property part exchange company is a more accessible option, enabling you to part exchange your home regardless of whether you’re buying a new build or an older property.

House part exchange is a great way to sell your home quickly and avoid the unpredictability of the real estate market. So what are the benefits and drawbacks of doing a house part exchange?
Developers tend to have very strict criteria for part exchanging a house, and it is usually only available when buying certain new build plots.

Is house part exchange a good idea?

If you have a property to sell before you buy your next home, a house part exchange can be an excellent solution.

Unfortunately, about one-third of property sales fail before completion in the open market. But that’s not an issue when you opt for a part exchange. Home part exchange eliminates the stress and uncertainty of selling a property and provides a guaranteed sale on a date of your choice.

You’ll realise that part exchange companies have to pay less than market value for your home. Instead of charging a fee for the part exchange service, they cover their business costs by buying your property at a discounted price.

They then resell it on the open market at its full market value. In doing so, the part exchange company takes on all the costs and uncertainties of selling in the open market.

Property Saviour is a trusted cash house buyer with lots of great reviews. Why not call us on 0113 320 6700 to see what we can offer.

Things to be aware of when considering home part exchange

You’ve got to do a bit of research and confirm that the part-exchange company you use is reputable. Unfortunately, the part-exchange industry is not regulated, so it is imperative that you research the company thoroughly before engaging them.

A legitimate part-exchange company will pay around 70% of the market value for your residence. If you are part-exchanging with a new-build company, they may increase this figure slightly, depending on how eager they are for you to buy the new house.

The fast and guaranteed house part-exchange process is made possible by the company buying your property directly. It is crucial that the company purchases with its own cash and does not depend on mortgages or bridging loans.

To do that, they will need a healthy cash balance.  This can be confirmed with a recent bank statement.  Many are reluctant to provide you with this information, citing that ‘this is not we work’.

Examining a company’s financials is the best way to discover if they are buying your property directly or borrowing money from a bridging company.  Look for the history of charges on their Limited Company record.

Part exchange – pros and cons


  • Convenience – Selling your current home can be timed to match up with your new home being available. That means you don’t need to juggle two separate transactions or be part of a lengthy property chain.
  • Certainty – You don’t have to worry about your house sale falling through, which can be costly and upsetting. With property part exchange, you can sit back and wait for the new home to be ready.
  • Speed – Statistics show that selling a house through an estate agent usually takes 5-7 months. If you’re in need of a faster sale, part exchanging your house can be a viable option. It’s also ideal for those who have experienced a chain-break or failed sale on the open market, as a part exchange service can come in and save the day. 


  • Price – Part exchanging your house may not be the best way to get the highest price for it. House part exchange companies usually pay less than the market value in order to cover their costs.

Are there any restrictions when you part exchange your house?

Whether you use a new build company’s in-house part exchange service or an independent home part exchange provider depends on the restrictions associated with each. The table below shows a comparison between the two.

New build part exchange versus independent part exchange provider:


New build homes

Independent part exchange provider


Usually limited to certain times of year/only available in certain market conditions.  Condition applied when incentives are needed to secure sales.

Available all year round, in any market condition.

Limits on type of property being purchased

Only available when purchasing certain plots/property types.

Available on all property purchases, new homes or older properties and homes of all sizes.

Limits on current property type

House builders part exchange schemes have strict criteria for properties they are willing to buy eg. most won’t consider ex-local authority properties.

All types of properties are considered, include non-standard construction, unmortgageable homes as well as lovely homes.

Limits on location

New build home developers will usually only consider part exchange properties in the same region, so it won’t be a good fit if you’re relocating to a new area.

An independent part exchange provider should be able to purchase properties anywhere in England or Wales.

Upsizing criteria

Most house builders’ part exchange schemes will require you to be buying a new home worth at least 30% more than the home you wish to part exchange.

Independent house part exchange schemes will be able to offer a part exchange service whether you’re moving to a more expensive or cheaper property.

Access to other incentives

Using a new home developer’s part exchange service means you’re unlikely to be eligible for any other incentives offered when buying a new build home.

Part exchanging with an independent company effectively makes you a cash buyer, which means you should be able to negotiate a great price on your next home and access other incentives offered by the developer if buying a newly built home.

Can you part exchange a house you bought with Help to Buy?

If you’re looking to sell a property bought with Help to Buy, you’ll need to repay the full loan amount.

As a part exchange offer will likely be lower than the market value, you should consider if you can afford to pay off the Help to Buy equity loan (which is based on a percentage of the current market value) and still be able to afford your next home.

Can you part exchange for a cheaper house?

Using a new build home developer part exchange scheme, you can only part exchange when buying a property that is at least 30% more expensive than your current home.

However, with an independent part exchange company, you are able to part exchange regardless of whether the house you are buying is more expensive or cheaper than your current one.

What are the alternatives to part exchanging your house
If you are not happy with taking less than market value for your property, then the best option for you is to use a traditional estate agent and put it on the open market.

What are the alternatives to part exchanging your house?

Property Saviour is an independent part exchange company with a great reputation.  It is a a great alternative to new build developer part exchange schemes, without any restrictions.

If you are not happy with taking less than market value for your property, then the best option for you is to use a traditional estate agent and put it on the open market.

If you are looking for certainty and speed, then get in touch with us today.

We’ll work with you to help you buy your forever home.

Sell with certainty & speed

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