Buying a home in a new building in the capital is the cherished dream of many Ukrainians. But it is not at all easy to do this, because real estate prices in Kyiv are very high and grow with an enviable constancy. According to the latest statistical data, the average price of a "square" in new buildings has increased from UAH 34 to UAH 700 per square meter. Due to the constantly changing market situation, the average Kyivan will collect the required amount in about 35 years. But not everyone has the patience to wait that long. Especially those who need to improve living conditions. For example, a young family is waiting for applications and urgently looking for a larger living space. In such cases, there is simply not enough energy or time to first sell the old apartment, then buy a new home, deal with paperwork, and so on. There is an easier way out of this situation - trade-in apartment. By the way, if you are thinking about buying real estate, we recommend contacting the best luxury real estate agency THE Capital.
"Trade-in" in translation means "item given as payment for a new product". It turns out that trade-in is a way of exchanging an old apartment for a new building, when the money from the sale of the second apartment is immediately transferred to the housing payment. Such deals with real estate are now becoming more and more common. And this is not surprising, since buying apartments in trade-in has significant advantages:
- simplifies the procedure of buying and selling real estate;
- reduces the risk of fraud when selling an old apartment;
- reduces time costs.
However, here too, of course, there are nuances, risks and shortcomings. For example, you can sell a new apartment under the trade-in scheme only in a new building. In addition, the trade-in scheme most often operates only on the territory of one region, or rather, even one city. Some companies can also accept apartments from the nearest region under the trade-in scheme. That is, selling an apartment in Kyiv and buying it in Odesa using the trade-in scheme will no longer work. Also, some developers put forward their demands for real estate objects. The first priority is order with papers, a convenient location and acceptable repairs.
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Types of buying an apartment in trade-in
The following types of schemes are distinguished:
- Standard. With a standard trade-in, the buyer transfers the apartment to the developer at a price lower than the market price (usually -15% of the normal value), and in return receives a new home.
- parallel In fact, two parallel agreements are combined here - the sale of an old apartment and the reservation of an apartment in a new building subject to a subsequent purchase. The developer or his partner real estate agency is engaged in the sale of an apartment on the secondary market: conducts an assessment, advertises, conducts showings, and prepares documents. At the same time, the developer is booking a new apartment for the buyer, which means that the price will not increase.
- Internal Under this scheme, you sell an apartment to the developer in his residential complex and buy housing there - larger in size or, for example, in another building or on another floor. The scheme works if a person has not yet received ownership of a house under construction and already wants to exchange it for another one from the same developer.
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Pros and cons of buying an apartment in trade-in
Perhaps the main advantage of the scheme is the speed of sale. In addition, the client does not need to sell his apartment on his own - this will be done by the developer's partner company. Also, the developer fixes the cost of housing according to the trade-in scheme. And the price per square meter is fixed for up to six months. But the disadvantages are also obvious. For example, for a quick sale of an old apartment, its value can be reduced by 10-15%. And if not, then they may not be able to buy a home in a short period of time. Subscribe to our real estate blog updates and receive new posts from THE Capital real estate agency.
