Selling
Quick-sale companies and part exchange, costed
Both buy speed and certainty with a discount. The question is whether the discount is smaller than what the speed is worth to you.
There is a settled way of talking about fast sale options. It is worth asking how much of it survives contact with the detail.
The argument in brief
- The discount is the price of removing chain and marketing risk.
- Offers are frequently revised downwards close to completion.
- Part exchange ties the sale price to a purchase price you also negotiate.
What you are actually buying
These arrangements replace an uncertain sale at a market price with a certain sale at a lower one. The discount is the fee for removing chain risk, marketing time and the possibility of collapse. For a household under genuine time pressure, that can be rational; for one that simply dislikes uncertainty, it is expensive.
The way to decide is to put a number on the speed rather than describing it as valuable.
Quantify the alternative
Estimate the achievable open-market price, subtract agency fees and the cost of however many more months of mortgage, insurance and bills you would pay. Compare that net figure with the quick-sale offer net of any fees they charge.
The gap is what the certainty costs, expressed as a number you can accept or refuse. Households frequently find the gap is larger than they assumed, and occasionally smaller.
The late revision problem
A recurring complaint about fast-sale operators is an offer reduced shortly before completion, when the seller has committed elsewhere. The mechanism is the same as any late renegotiation: leverage rises as the seller alternatives narrow. Ask what conditions can change the offer, get the answer in writing, and check whether the offer is subject to survey or valuation.
Where it helps most, a firm offer that is not subject to anything is a different product from an indicative one.
Check who you are dealing with
Some operators buy directly; others broker to investors, which means the transaction has an extra party and an extra way to fail. Ask whether the buyer is the company itself and whether funds are already available. Check what regulation or redress scheme applies in your jurisdiction, since coverage varies and some sectors are lightly supervised.
Never sign an exclusivity period without knowing exactly how long it locks you out of the open market.
Part exchange has two prices
A developer offering part exchange is buying your home and selling you theirs, and only the difference between the two matters. A generous-looking valuation on your property can be funded entirely by a firm price on theirs, and the reverse is also possible. Negotiate them as one number, and get an independent valuation of your property so you know what you are giving up.
Eligibility rules — value ratios, property types, locations — usually apply and are set by the developer.
None of this is a substitute for talking to a clinician if something feels wrong.
The middle options
Auction sale, a lower asking price with a short deadline, or accepting a chain-free buyer at a modest discount all sit between the extremes. Each gives up some price for some certainty, without the largest discount. A conveyancer can tell you which routes are practical in your jurisdiction and what each commits you to.
This is general information rather than advice, and a regulated adviser should look at anything involving your borrowing.
The takeaway
Price the certainty, in currency, and then decide whether you are paying too much for it.
Small and repeatable beats ambitious and abandoned, almost every time.
Questions readers ask
Are quick-sale discounts negotiable?
Sometimes, particularly where the property is straightforward and the company wants the stock. Get a competing offer before assuming the first figure is fixed.
Is part exchange available on older homes?
Developers usually apply criteria on value, type and location, and often exclude flats or properties above a proportion of the new home price. Ask for the criteria before valuing anything.
