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