Real Estate Trading
Real estate trading is a type of "I buy yours you buy mine" arrangement. This is distinct from vacation home swapping.
The deteriorating real estate market (circa 2006+) has led many to realize that trading May Be an extremely viable approach to selling one's real estate. This approach only works if the seller is also looking to buy another property, such as a move or relocation. However, it is possible to move up or down in price, size, etc, or even trade to another city or state entirely.
While related, real estate trading is different than 1031 Exchanges. 1031 exchanges are a way to defer capital gains tax on investment properties. 1031 exchanges need to involve an actual trade between two parties.
Online Real Estate Trading
Online trading can take two forms.
The first is simply the inclusion of a text box along side a real estate listing, stating the the seller will consider a trade and possibility a description of what the seller is looking to trade for. Craigslist is a popular example of this. While not specifically geared towards permanent trades, it is often used for such a purpose. Their are also several web sites, mostly set up by Realtors, that make use of this approach.
The second, more sophisticated approach, uses a model similar to a dating service. Such a web site matches sellers with other sellers based on what each seller has and what each is looking to trade for. There are a Small number of web site that make use of this approach.
News Articles
- Can't Sell Your House? Swap It! (CBS News)
- Swapping Homes To Overcome Real Estate Market (WTVF - Nashville)
- Chandler part of last-ditch sales effort: house swap (azcentral.com)
- Your Home Not Selling? Swap It (thestreet.com)
- Neighbors Swap Houses Instead Of Testing the Housing Market (RealEstateJournal.com)