Part Exchange with A House Buying Company: A Faster Way to Sell and Buy

part exchanging your house with a house buying company

Is a slow house sale holding you back from your dream move?

Part exchange houses with a House buying company for a faster solution.

Pros and cons of part exchanging your house

Part exchange with a house buying company offers both benefits and trade-offs. It's crucial to consider these carefully before deciding if it's the right path for you.


  • Speed and Convenience: Part exchange significantly speeds up the process compared to a traditional sale. You avoid lengthy chains and can potentially move into your new home within weeks.
  • No Estate Agent Fees: Part exchange eliminates estate agent commissions, saving you a potentially significant expense.
  • Chain-Free Status: Property buying companies often prefer chain-free properties. Your home becomes a much more attractive option, increasing the likelihood of a quick offer.
  • Stress Reduction: If your property has issues, PX removes the need for repairs or extensive preparation before selling. This can significantly reduce the stress of a house sale.
  • Certainty: With a part exchange agreement in place, you have more certainty about the timeline and completion of both your sale and purchase.


  • Below Market Value: The trade-off for speed is that you'll likely receive less for your existing home than through a traditional sale.
  • Limited Property Choice: You're usually restricted to properties eligible within the home buying company's scheme. This narrows your options.
  • Potential Hidden Fees: Scrutinise the agreement for reservation fees, arrangement fees, and other potential costs that can eat into your overall savings.
  • Less Negotiation Power: With Part exchange through a house buying company, you might have less leverage to negotiate on the price of your new home compared to a traditional purchase.
  • Legal and Financial Complexities: Part exchange agreements can be more complex than standard sales. Seeking expert advice is essential to protect your interests.

Related: The Legals of Selling Cash Buying Company

Part exchange with a quick sale company prioritises speed and convenience over maximising the price of your existing property. It's a viable option if a quick move outweighs getting top dollar for your current home.

How Does Part Exchange Work with House Buying Companies?

Unlike traditional sales, part exchange with a fast sale company aims for speed and simplicity. Here's how the process usually unfolds:

Step 1: Valuation and Offer

  • Multiple Valuations: House buying companies often conduct their own valuations of your property. In some cases, they might use an independent surveyor as well.
  • The Offer: Based on their assessment, the company will make an offer to purchase your current home. Keep in mind this offer is likely to be below market value to account for the speed and convenience they provide.

Step 2: Choosing Your New Property

  • Limited Options: You'll typically be restricted to properties within the house buying company's eligible scheme. This could include their own stock of properties or a partnership with specific developers.
  • Research is Key: Carefully research available properties to ensure they meet your needs and align with your budget.

Step 3: Negotiating the Price Difference

  • Expect to Pay More: Since you're likely receiving less than market value for your existing home, you often end up paying a premium for your new property within the part exchange scheme.
  • Negotiation Room: While your leverage might be limited compared to a traditional purchase, there might still be some room to negotiate the overall price difference.
  • Understanding the Trade-Off: It's crucial to grasp the financial trade-off involved. You're essentially paying for the speed and certainty that part exchange offers.

Step 4: Completing the Deal

  • Legal Guidance: A solicitor specializing in part exchange is essential to review contracts, ensuring your interests are protected and that you understand all terms.
  • Financing: The company might have in-house financing options or work with specific lenders. Scrutinize terms carefully.
  • Timeline: Part exchange can often be completed in a matter of weeks, significantly faster than a traditional sale and purchase.

Related: Common myths and misconceptions about quick sale firms

Why Choose Part Exchange with a Property Buying Company?

Part exchange can be the ideal solution if your circumstances align with the priorities of these companies. Here's why:

  • Uncomplicated Transactions: These firms seek uncomplicated transactions. For example, if you don't have a chain of buyers and sellers to contend with, your home becomes a highly attractive prospect, potentially leading to a faster, smoother process. In addition, you could get up to 10% more for your property!

  • You Need to Move Quickly: Whether you're downsizing, relocating for a job, or facing other time-sensitive circumstances, part exchange offers a significantly faster timeline than a traditional sale. While you might sacrifice some price, you gain precious time.

  • Limited Funds for Repairs or Upgrades: If your property needs work and you lack the budget or inclination to manage renovations, part exchange can be a lifesaver. These companies often purchase properties "as-is," relieving you of the stress and expense of preparing your home for the competitive traditional market.

Additional Considerations:

  • Streamlined Process: Part exchanging with a company that buys houses for cash can consolidate the selling and buying process, potentially reducing the number of parties involved and simplifying the overall experience.
  • Reduced Uncertainty: While sacrificing some control over price, you gain certainty in terms of the completion timeline for both your sale and purchase.

It's crucial to weigh the speed and convenience offered by part exchange against the potential financial trade-offs involved. Seeking professional advice can help you make an informed decision.

Financing and Securing Your Next Property

When using part exchange with a house buying company, the financing process for your new home might differ from a traditional mortgage experience. Here's what you need to know:

Differences from Traditional Mortgages:

  • Developer Incentives: If your new property is part of a development, there might be special financing packages or incentives offered to part exchange buyers. Examine these offers carefully, as terms can vary significantly.
  • In-House Financing: Some companies have their own financing schemes. These might offer a faster approval process, but it's crucial to compare rates and terms with traditional mortgage lenders.
  • Scrutinise the Fine Print: Regardless of the financing route, pay close attention to interest rates, repayment periods, fees, and any restrictions that might apply.

The Speed Factor:

  • Potential for Streamlining: Part exchanging with them can expedite the mortgage process for your new property. This is because they often have established relationships with lenders or can manage the entire process in-house.

Important Limitations:

  • Restricted Property Choice: Your options for financing might be tied to the properties available within the firms part exchange scheme. This limits your ability to shop around for the absolute best mortgage rates.

Understanding the financing landscape of part exchange is crucial. Don't assume it'll be identical to securing a traditional mortgage. Seek independent financial advice to ensure you're getting the best deal aligned with your overall financial goals.

Exploring Other Part Exchange Options

While part exchange with house buying companies prioritises speed, it's important to understand the broader landscape of potential part-exchange avenues:

Part Exchange with Developers:

  • New-Build Focus: Many developers, especially those with large-scale projects, offer part exchange programs specifically for purchasing their new-build properties.
  • Incentives and Flexibility: Developers might provide financial incentives or offer more flexibility on things like completion dates to attract part exchange buyers.
  • Understanding the Trade-Offs: Similar to these firms, expect to potentially receive slightly below market value for your existing home in exchange for the convenience and speed of part exchange.

According to Zoopla, ensure you're of the 70% rule if you plan on using developers.

Part Exchange with Housing Associations:

  • Specific Circumstances: Some housing associations offer part exchange schemes, often focused on helping people downsize, relocate to more suitable properties, or become homeowners through shared ownership.
  • Eligibility Criteria: These programs often have specific eligibility requirements based on your circumstances, age, or income level.

Always compare terms, eligibility, and the potential financial impact of any part exchange scheme before committing. Seek advice from professionals to ensure it's the right path for you.

Final Thoughts & Key Takeaways

Part exchange with house buying companies offers a valuable solution when speed and simplicity are your top priorities. By accepting a potentially lower price for your existing home, you gain a streamlined process and a faster timeline for securing your next property.

Key Takeaways:

  • Part exchange prioritizes convenience and speed over maximizing sale price.
  • Professional advice from a solicitor and financial advisor is crucial for any part exchange scheme.
  • Research is essential; compare part exchange offers from firms with costs of a traditional sale and other potential part exchange options.

Part exchange isn't a one-size-fits-all solution. Consider your individual needs, financial goals, and the broader range of part exchange possibilities available to make the most empowered decision for your property journey.

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