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Trade-in: how to change an old apartment in Kiev for a new one?

04.02.2022

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Trade-in: how to change an old apartment in Kiev for a new one?
Buying a house in a new building in the capital is the cherished dream of many Ukrainians. But to do this is not at all easy, because in Kyiv real estate prices are very high and grow with enviable constancy. According to the latest statistics, the average price of a "square" in new buildings has increased from UAH 34 to UAH 700 per sq.m. Due to the constantly changing market situation, the average Kiev resident will collect the required amount in about 20 years. But not everyone has the patience to wait that long. Especially for those who need better living conditions. For example, a young family is waiting for an addition and urgently looking for a larger living space. In such cases, there is simply not enough strength or time to first sell the old apartment, then start buying a new home, fiddle with paperwork, and so on. There is an easier way out of this situation - trade-in apartments. By the way, if you are thinking about buying real estate, we recommend contacting best luxury real estate agency THE Capital.
"Trade-in" in translation means "an item handed over as payment for a new product." It turns out that trade-in is a way of exchanging an old apartment for a new building, in which the money from the sale of the "secondary" is immediately transferred to pay for housing. Such real estate transactions are now becoming more common. And this is not surprising, since buying apartments in trade-in has significant advantages:
  • simplifies the process of buying and selling real estate;
  • reduces the risk of fraud when selling an old apartment;
  • reduces time costs.
However, here, of course, there are nuances, risks and disadvantages. For example, sell a new apartment according to the trade-in scheme, it is possible only in a new building. In addition, the trade-in scheme 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, it will no longer be possible to sell an apartment in Kyiv and buy in Odessa under the trade-in scheme. Also, some developers put forward their own requirements for real estate. The primary ones are the order with papers, a convenient location and an acceptable repair. Read more:: How to rent out non-residential premises?

Varieties of buying an apartment in trade-in

There are the following types of schemes:
  • Standard. With a standard trade-in, the buyer transfers the apartment to the developer at a price below the market price (usually -15% of the normal cost), and in return receives a new home.
  • Parallel. In fact, two parallel transactions are combined here - the sale of an old apartment and the reservation of an apartment in a new building with the condition of further purchase. The developer or his partner real estate agency is engaged in the sale of an apartment on the secondary market: it evaluates, advertises, holds shows, and draws up documents. At the same time, the developer reserves a new apartment for the buyer - this means that its value will not increase.
  • Internal. According to this scheme, you sell an apartment to the developer in his own residential complex and buy housing in the same place - larger in size or, for example, in another house or on another floor. The scheme works if a person has not yet received ownership of a housing under construction and already wants to change to another from the same developer.
Read more:: Renting out an apartment: how to write an ad correctly?

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 partner company of the developer. Also, the developer fixes the cost of purchased housing under the trade-in scheme. And the price per square meter is fixed for up to six months. But the downsides are also obvious. For example, for a quick sale of an old apartment, its value can be underestimated by 10-15%. Otherwise, in a short time, housing may not be bought. Subscribe to our updates real estate blog and get the latest publications from the real estate agency THE Capital.

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