New website DomuSwap was created to assist would-be home sellers in swapping their homes, instead of selling them. The website says;
DomuSwap opens up an exciting new option for buying and selling real estate; by exclusively listing homes from sellers who will consider an exchange of property.
But home exchanging has always been a very small market. One reason (which the new website hopes to change) is the challenge of finding two sellers that have homes they both would want to exchange with each other. Another challenge is having the capital to pay the difference in home values with the exchange.
For instance, if I want to exchange my home with someone and my home is worth $100,000 and theirs is worth $90,000 I would expect them to pay me the extra $10,000 to make up the difference. This could be handled in cash, a note, or possibly with an equity agreement of some sort. But what about the mortgage carriers?
There are situations where an exchange makes sense (land deals, unusual properties) and there can be less cost to the transaction for both sides, but I wonder what it would take for exchanges to become mainstream. If major real estate websites began facilitating exchanges they would probably become more common, but the process and concept is still so unknown that it would take quite a bit for them to get traction.