The trade-in service has migrated from car dealerships to the real estate business. Offsetting old real estate when buying a new one is becoming commonplace, although mainly only in megacities. According to experts, today in Moscow, when buying apartments in new buildings, almost 10 percent of clients use this option.
In the real estate market, the trade-in service has its own characteristics. The principle of operation of the service in the real estate market is somewhat different from the automobile market. If, when buying a car, a client essentially sells his old car to a car dealership and immediately goes home with a new one, then with apartments the situation is more complicated. One of the options is the urgent buyout format, when an old apartment is purchased by a developer or real estate agency at a discount and housing in a new building is provided in return. But it does not occur often, since when exchanging an old apartment for housing in new buildings, apartments are purchased at a discount of up to 40 percent from market value. According to experts, the benefit in this case is very doubtful.
Another, more complex option is two parallel transactions for the sale of an apartment on the secondary market and the purchase of housing in a new building. In the second case, as Alexey Bernadsky, director of the Department of Resale Real Estate at Est-a-Tet, said, the most difficult thing is the time factor. “Developers allow the reservation of apartments with a fixed price for no more than two months, and not all companies agree to such conditions and set much shorter periods,” he explained.
The speed of selling an apartment largely depends on its adequate assessment and establishment of the correct market price. In a stagnating market, it is difficult to guarantee a sale within two months. An agent needs to look at and call at least two dozen apartments in a competitive environment to understand the market value of such offers. The price should not be underestimated, since this is not an urgent purchase. Of course, an unscrupulous agent can set a price below the market and sell the apartment in two showings, but in the case of a trade-in without an urgent purchase, the client is interested in selling the property at the market price.
The speed of selling an apartment depends on its adequate assessment and setting the correct market price
In this case, much depends on the agreements between the realtor and the developer and the possibility of obtaining individual preferences for the agency’s clients. Even in the case of maximum term reservations, you must manage to sell your existing housing on the secondary market two months in advance. Now, according to experts, the average period of exposure of objects on the secondary market is about four months. That is, in order to conduct a transaction in the trade-in format, a realtor must reduce the average time for selling an apartment by half.
As a study conducted by analysts of the Metrium Group company showed, such a service is not provided today in all projects on the primary market. In the mass segment in “old” Moscow, this option, according to experts, is available only in half of all new building projects being implemented. In New Moscow, the share of trade-ins is even lower - approximately 42 percent (15 residential complexes).
According to Metrium Group analysts, two schemes are the most popular today. The first option: the old apartment is transferred for sale to an agency that sells housing in a new building. In this case, an apartment in a new residential complex with price fixed for a month. This option is suitable for those who are willing to give up a little on the price of their old apartment to speed up the selling process.
Another common option: everything is the same, but an apartment in a new building is booked without fixing the price for an indefinite period. This option is chosen by those who want to sell their apartment as profitably as possible. At the same time, there is a risk that while old housing will be sold at a higher price, the cost of the purchased property will also increase.
For a buyer of an apartment in a new building, the trade-in service may be interesting for a number of reasons. This option is very suitable for the lazy; it is an opportunity to solve a housing problem without unnecessary fuss, in just a few visits to the office of the selling company. Another advantage is that such a transaction, as a rule, is as safe as possible for the client - all financial payments are made through the agency, and professional lawyers accompany the transaction at all stages. “At the same time, you need to understand that a trade-in is not suitable for everyone,” said Maria Litinetskaya, managing partner of the Metrium Group company. “For example, if you need to wait another two years before putting a new building into operation, but old property will be sold now, then until you receive the keys to your new home you will need to rent an apartment. At long term expectations, rental costs may offset the benefits of purchasing a new home at an early stage. The best option for a trade-in is the purchase of an apartment in a ready-made new building or two to three months before receiving permission to put it into operation.”
The trade-in service is very suitable for the lazy; you can solve your housing problem without unnecessary fuss, in just a few visits to the office of the selling company
There is an important nuance in trade-in transactions related to the timing of the physical release of the sold apartment. If a person buys an apartment in a building that is still under construction, then he needs somewhere to live until it is completed. The real estate agency can agree with the seller to delay the departure from the sold apartment for up to two months, after which, in some cases, the new owners even agree to rent out the apartment to the former owners for some time. However, the factor of the timing of the physical release of the apartment “fades” against the background of the question of price. It is not always preferable for the seller to have a client who agrees to vacate the occupied space on the day of the transaction and is therefore willing to pay less. Renting a “transit” apartment while waiting for the completion of a new building is usually cheaper than a discount on sale. In addition to vacating the apartment, the client must deregister; here again, the real estate agency can organize a deferment of deregistration.
The most common reasons for the failure of transactions in the trade-in format are the bank’s refusal to approve a buyer for an object on the secondary market or the buyer’s refusal to enter into a transaction in a situation where he has an alternative sale and something “didn’t work out” with it (that is, when the buyer, in order to buy the “secondary” of the seller through a trade-in, still needs to sell something of his own). The most preferred buyers for a trade-in are people with free money. Mortgage buyers also often encounter a “snag” - the sale transaction has to be carried out through the bank that provides the mortgage to the buyer. And most often it differs from the bank where the seller then needs to transfer money for the new building.
Trade-in is a scheme in which the developer buys an apartment from the owner for own funds. At the same time, secondary housing is usually valued at 10-20% below market value. After the developer becomes the owner of the apartment, he can sell it independently. In return, the owner can use the proceeds to purchase housing in the developer’s new building. However, an important point should be noted: if the money received from the sale of the old apartment is not enough to purchase a new one, then you will have to pay the missing part out of your own pocket.
Naturally, such a scheme has a number of inconveniences, and for this reason it is not wildly popular in Russia. On the one hand, it is not profitable for the developer to buy secondary apartments and thereby take on the balance sheet another object, which is a source of costs: maintenance, resale, taxes. And the owner secondary housing seems unfairly low.
Therefore, the so-called mutual settlement system is more popular on the Russian market. In short, the owner of the apartment first sells his home with the help of one company at an adequate price, and with the money received he already purchases an apartment in a new building. At the same time, it is possible to first book housing in a new building, and only then start selling your old apartment.
Trade-in schemes differ from mutual settlement schemes in the speed of the transaction. In the first case, the transaction is completed at the earliest short terms, since there is no need to find a buyer, and there are only two parties involved in the scheme. In the second case, naturally, the speed of completing the transaction is significantly reduced: to search for a company selling housing, then to search for a buyer, to complete the transaction, and, finally, to purchase the long-awaited housing in a new building. But in the second case, the old apartment is sold at a higher price, and there is an opportunity to wisely invest the proceeds.
It would be quite logical to ask the question here: if you sell old apartment, and in return purchase a new one, then how does the settlement process differ from a regular alternative transaction? There are a number of nuances here: a “trade-in” transaction specifically refers to a transaction related to the purchase of housing in a new building, and, which is typical, when an old home is put up for sale, the client already knows exactly which one he wants to buy in return, and often already in advance reserves the specifically selected living space. In addition, the client’s apartment is sold first, and only then the rights to the new building are paid for. In the generally accepted alternative scheme, it is customary to perform these operations simultaneously.
According to experts, the trade-in scheme and the mutual settlement scheme in the modern Russian market real estate will be used more and more often because it is in a good way additional extraction of funds for the purchase of housing in a new building. Moreover, given the unstable situation in the labor market and the ever-decreasing chances of both getting and paying off a mortgage, a “trade-in” for many owners will be a real way out of the current situation, and a real way to improve their living conditions.
Be careful: a “trade-in” in its pure form, that is, with the purchase of an old apartment by a developer, is a way to greatly reduce the price of your old home. They usually give no more than 70% of the market value for it. In addition, developers have a number of requirements for the purchased housing, which must also be met in order for the transaction to take place. In particular, the apartment must be free both legally and physically. Shares and communal rooms are not used in trade-in.
The mutual settlement system also has its drawbacks. In particular, the burning question is where should the owner live in the period between the sale of the old apartment and the receipt of a new one? Also, important point may be the participation of minors in the transaction. If there are children among the owners of the old apartment, then the guardianship authorities may intervene in the transaction and disrupt it.
It is also worth considering the fact that the period for booking an apartment in a new building for a mutual settlement scheme may be limited. Most often, the developer agrees to reserve housing for two to three weeks, but not longer. Accordingly, the sale of old housing will require urgency, which additionally forces the owner to agree to a lower price.
Nevertheless, this method quite convenient, real and a good solution for improving living conditions.
Exchange of secondary housing for a new building in Moscow and the Moscow region
A large number of new buildings are being built in Moscow and the Moscow region multi-storey buildings with an excellent layout, in which many would like to have housing. If you have an old apartment, it is quite possible to change it (exchange) for an apartment in a new building.
An apartment in a new building has a modern layout and new communications, parking for cars, wonderful entrance groups, beautifully decorated local area.
For example, you have two-room apartment in a 9-story building in one of the districts of Moscow, total area 45 sq. m., kitchen a little more than 6 sq. m., living area 28 m2, small corridor, tiny bathroom. Appearance The house leaves much to be desired, communications are worn out. Having such an apartment, you can exchange it without additional payment for an apartment of a larger area (from 50 to 75 m km), with a kitchen from 10 m km in a new building. It is also possible to exchange for a 3-room apartment of 80 sq. m or more in the territory of New Moscow or the near Moscow region.
Agree, for many such an exchange would be very attractive. Exchange options are possible with or without additional payment. We will select several moving options and try, if not to save you from additional payment, then, in any case, to keep it minimal.
If you do not have enough funds to purchase a new building apartment (in an exchange transaction), you can use mortgage loan. We will tell you how, on what conditions and in what large bank, of which we are a partner, it is possible to obtain a preferential mortgage loan.
The acquisition of new buildings has specifics compared to secondary market. First of all, this applies to the agreement: the transaction is concluded not on the basis of a purchase and sale agreement, but on the basis of an investment agreement - the Agreement equity participation, Agreement on the assignment of rights of claim or similar in meaning. A different procedure for registering an agreement, a different transfer scheme cash. Therefore, for a successful transaction, it is better to involve professional specialists.
In our agency "Address-Real Estate", from the very first step of purchasing a home in a new building, employees of the legal department are actively involved. They will not only examine all title documents, but will also accompany you until the stage of registering ownership of the apartment.
The abundance of real estate agencies suggests that every day thousands of people decide their housing issues, which means that you, too, may be lucky to quickly solve your problems.
So, there is a desire to change your old apartments to new ones.
We can offer you a number of proven and frequently used reliable methods that will help in your business.
Trade-in
We are all familiar with the trade-in system from the automotive business. But few people know that this is also possible in the real estate industry. The method of bartering apartments through a trade-in is as follows.
you attract third party - company, which buys the home you are interested in in a new building using your apartment as collateral.
Knowing that your dream home has been purchased, you can safely sell your property.
When receiving funds, you just need to carry out buying and selling with an intermediary, leaving him a remuneration in the amount established by the contract.
After completing this entire procedure, you become the full owner of the desired property by selling your home.
From the developer
If you want to buy an apartment in a newly completed new building or even at the construction stage, then you need to contact the developer.
Invite the company that built the house to barter the home for a new building. The developer's representative must assess the condition of your home, after which he will tell you about the conditions of barter.
If they are acceptable to you, you sign an exchange agreement with legal entity. After signing, the developer receives your housing, and you receive new apartments.
Contacting a realtor
If you don’t want to delve into the process of exchanging apartments on your own, you are too busy and don’t have time, then you can contact a real estate office. Your home will be assessed and options will be offered. by barter.
In addition, some real estate companies, if they consider such an investment profitable, may buy an apartment on your own using your own funds, so you will receive not only the option of a new building for purchase, but also money for your property.
Which method to choose is up to you to decide based on the current circumstances, but for now we’ll talk about the nuances.
In order for a transaction to exchange an old home for a new one to go through properly, a number of nuances must be observed.
Let's talk about them in more detail in the paragraphs below.
Where to start?
To make your home attractive for sale and purchase, and also to increased slightly in market value, preparatory steps need to be taken.
In this case, the owners can no longer enter into an exchange contract. They need to draw up a purchase and sale agreement bilaterally.
And the party who must make an additional payment simply pays the difference before going through the paperwork with Rosreestr.
More for less
When exchanging a larger apartment for a smaller one, you can also request an additional payment. In this situation it is also filled in purchase and sale agreement.
Other features and difficulties
The main difficulty is that old housing is valued somewhat cheaper than new housing. When contacting a real estate company, remember what they can offer the cost of housing is not higher than 80 percent of its market value.
If you are ready to sacrifice that amount to save time, be prepared for such a development.
If the means are expensive, then much It’s more profitable to contact the developer directly or try to sell the apartment yourself.
Exchange of apartments is no longer an innovation in our real estate market, and yet, many citizens are still wary of such a procedure. Having studied all the nuances, we can say with confidence that there is nothing complicated in barter. Good luck with your transactions.
If you find an error, please highlight a piece of text and click Ctrl+Enter.
Apartment exchange is a phenomenon that is gaining increasing popularity in the real estate market. Now residents of the Moscow region can exchange old housing for new ones from. We tell you what you need to know about modern way buy an apartment.
What is a trade-in in real estate?
Trade-in is one of the ways to buy an apartment. The developer buys the client’s old apartment and uses this money to purchase a new apartment in one of his properties. Two contracts are immediately drawn up - on the sale of housing and on participation in shared construction.
With a trade-in, the client does not need to look for a buyer for his apartment, go to showings, negotiate a price, fill out mountains of documents and wait. He arranges everything at once, and pays for a new purchase with any in a convenient way: cash, takes in installments or mortgage.
What are the advantages of the exchange program in Brusnika? Unlike most other offers on the market, when Brusnika buys an apartment, a person does not have to wait until a buyer for his home is found. So, you can close the purchase of a new apartment within 5-10 days. At the same time, the client receives an additional advantage: the opportunity to live in his previous apartment for another three months.
What apartments does Brusnika accept?
By purchasing new apartment in Brusnika, existing housing can be given as payment, even if it is under a mortgage. The apartment must be entirely owned, not under arrest or prohibition, and not be encumbered with the rights of third parties. The owner can participate in the program if his house meets the following criteria: number of storeys - from 5 and above, without wooden floors, is not in disrepair (wear less than 40%), not older than 1970, or after overhaul, not long-term construction. If redevelopment has been done in the apartment, it is important that it be agreed upon and documented. Previously, the Brusnika company accepted only apartments in the city of Vidnoye under the Exchange program. Now the geography has expanded significantly. Residents of Chertanovo, Northern and Southern Butovo, Tsaritsyno, Biryulyovo, Izmailovo and other areas of the Moscow region can become participants in the program.
How does the exchange take place?
Becoming a participant in the exchange program is simple: you just need to select and book your favorite apartment in one of the Brusnika houses by filling out an exchange application. Next, a specialist will contact the client and set a convenient date for viewing the apartment. Within two days after the assessment, the cost of the client’s apartment and the price of a new apartment in the building they like are fixed. Brusnika employees will help you arrange a mortgage or installment plan for an amount that will be the difference between the cost of the old apartment and the new one, if necessary.
Carrying out an inventory
Ulyukaev, Navka and Patrushev
Income tax refund for treatment: registration procedure and calculation of the deduction amount
Import substitution - what is it?
OSAGO minimum insurance period