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