A New Real Estate Twist Don’t Sell, Swap! – Trading Real Estate in a Poor Market
Homeowners who are unable to sell their homes, or unwilling to lock in huge paper losses, have begun to trade homes with others. The trend, which is creating huge interest among cash strapped homeowners, involves finding another couple willing to make the housing switch. What was once a buying spree has now turned into a trading spree as some look to trade up while others trade down.
Moving has become quite the task in a beaten real estate market. To first move, homeowners must sell their current home to buy another. Previously with a red hot real estate market this process could be completed in just a few weeks and homeowners had the flexibility and comfort of shopping for a home while their current home attracted a variety of offers, some higher than the actual listing price.
Now homeowners are making use of the many home swapping social networks and websites that pair up potential swappers. The deal is, find someone who wants to locate to your area and would be interested in your home who also has a home you’re interested in. It may seem difficult, but many homeowners are finding it easier to trade than it is to sell for cold hard cash.
Though it may take months to find a suitable candidate or none at all if you happen to live in a remote section of the United States, listing your home for sale may take even longer. Plus, many Americans who have growing families and are in need of a bigger home are finding it easier to trade up with someone who simply can’t make ends meet and could afford a downsize.
All in all I’d say this trend has legs for as long as the real estate markets remain as illiquid as it has been. Plus, when houses are swapped its usually at a “price” of near the market value which helps keep real estate prices higher. There are now literally hundreds of websites and agencies that act like real estate brokers to trade your home with others, a quick google search for “house swap” yields 15.9 million results.
If you can’t sell your home and have the patience to wade through thousands of houses, a swap might just be perfect for you.
This is a great suggestion for people who are having difficulties selling their house in a down market. The US has the most mobile work force. Someone moving from California to Iowa will find that they can buy a mansion for the same price but the person moving from Iowa to California probably can’t afford anything. By swapping houses both sellers benefit.
I agree, the more willing sellers and buyers are to creative deal structure when financing guidelines are stringent is an excellent approach. I agree with Jennifer in that the swapping may only work in reciprocal markets.