Anyone part ex'd with Persimmon recently?

[mjd]

We are interested in a new build not far from where we are now in the last phase of a persimmon development.
House sales where we are are now are near zero other than sub 100k properties snapped up for rental. Anything like our current house has typically been on the market for over a year (and in some cases several years)
I understand that we will be offered significantly under market value, but just how bad is it likely to be? Is it considered the done thing to still try and negotiate the asking price on the new property?
Anyone had any recent experience of anything similar?

 

[mjd]

Sadly that might be preferable given the crap we are dealing with at the moment.

 

[mjd]

They usually won't discount the new properties as it devalues the new estate. They are more than likely willing to include extras such as upgraded fittings eg better worktops and tiles, carpets, lawn, proper fence etc. Try and blag as much as possible. Don't forget that if you find it difficult to sell a property over 100k then the house builder will most likely find the same so more inclined to negotiate on the extras and on a higher price for your house and the extras.

Thanks.
Seems to be a lot of talk elsewhere of persimmon pulling the plug or dropping their offer when reservations are made well ahead of plots being completed, so perhaps best to look for something close to being finished.

 

[mjd]

I part ex'd on a new build, not Persimmon. We had our flat advertised at £4k under hom******s report valuation (Scotland) for fixed price, builder gave us the fixed price for part exchange. They took a £25k loss on it in the end when they finally sold it.

I have read quite a few stories like this. Gives a good idea of the real cost of what they are selling.

 

[mjd]

I wouldn't have typically considered a new build. The development must have been going for around 8 years now, but this is (allegedly) the final phase and the house in question is at the very end on a small road feeding 4 houses only.

 

[mjd]

We p/x'd with Persimmon a few years ago.

Basically the supposedly neutral valuations they did with two agents came back valuing the property at about 9% less than I did. I then told Persimmon we couldn't afford that much difference in valuations so they knocked the equivalent off the price we'd agreed for the new house. This implies to me we probably could have got a bigger discount to start with.

In the end they sold our old house for less than 90% of their valuation (about 19% below mine). The person who bought it got a bargain IMO, especially having seen the amount they put it up for rent for (~£1k/month on a purchase price of £130k, minimal work done to the property, must be a decent yield?). Was quite amusing prior to that however, someone was willing to pay full asking price (£150k) but only if they could move in quickly - we were waiting for our new build to complete so had no incentive to move out.

Overall I don't think you get quite as stitched up on p/x as I originally thought, probably because from the builder's perspective it means no worries about a chain falling through etc so they get a pretty much guaranteed sale once the house is ready. The attitude we took was that by the time you factor in no agent fees, and less hassle that p/x is probably worth taking a small hit on valuation. My advice is do your research, maybe get a free valuation from a local agent so you have a rough idea what sort of number you want to see from Persimmon.

Obviously, it depends a bit on the local market, if you have a property that is 'well presented' and in an area with lots of interest then you will probably do fine selling via the usual means.

Thanks for that. That's the sort of thing we are looking for.
We are not overly concerned about taking a hit to some extent, as there is every possibility we could put the current house on the market using its market valuation, and still be here in a year's time and we want out. There are so many houses on the market around here, and I'm sure some of them have been for sale the entire 8 years we have been here. The market seemed quite lively around here when we bought our current house, but the the area doesn't seem to have recovered since it all went wrong in 2008.
Good to know that Persimmon want to meet their quote so to speak. I'm an amateur when it comes to haggling, but my wife is lethal

 

[mjd]

Thanks for the input chaps.

Sounds a bit hit and miss, combined with what I have read elsewhere.

I have been looking at whats going on in terms of sales locally to get an idea if it is as bad as I thought. There were zero sales in this area in 2013, and only 2 in 2014. Sales in 2014 were at 60 and 80k, There are currently 5 other comparable houses listed for sale within walking distance of our current home. They have been on the market for between 1 and 4 years.

The prospects aren't looking too clever if we want to sell rather than part ex.

 

[mjd]

Well it would appear it was only a hypothetical option. Apparently they have met their 'quota' on part ex deals and can only offer to sell our house on our behalf. I haven't entirely ruled out the idea, but I think we're stuck here for the moment.