Would you be Willing to Swap Homes?

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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.

Other sites that offer exchange services include ExchangeUK, Realty-barter-exchange, OnlineHouseTraders,

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5 thoughts on “Would you be Willing to Swap Homes?

  1. I am the creator of DomuSwap. Thanks for noticing our site.

    I agree with you that finding two sellers to match is the challenge, but thats were the internet comes in. Dating services have used this model online successfully. I see not reason why finding a house should be more difficult than findind a mate for life.

    I think when owners realize how appropriate a trade is in many situations, then make their make that desire to trade public and searchable, we can make trading very successful and a common alternative. In addition, just as most owners have a “can’t refuse” price for selling, they also have a “can’t refuse” trade, that if they simply post their home they could very well receive. Even if the trade is not their ideal move, they may at least be able to move into a “more ideal” position.

    Regarding the mortgage issue, that can most certainly be accomplished through the mortgage brokers. Why not, since the mortgage is now less, having more down payment. We hope to have an article online from a lawyer on this soon.

    Thanks again for checking out the site.

    Dave Moskowitz, DomuSwap.

  2. I certainly would try this service. It may be a headache but if I can sell my house in Sumter, SC and get a good house in the SLC area, why not. I like the idea.

  3. I am the President of OnlineHouseTraders.com . I love that more people are starting to understand trading and write about it. Everyone always wants to make it more complicated than it is. You can get creative and discount by equity or value, but the simplest way is to simply purchase each others houses at an agreed upon price. OnlineHouseTraders.com is a national site, so we do service the state of Utah. We have had hundreds of matches already, and I am hearing of deals being made. The key point I would like to make about trading is even in a slow market people need to move or want to. Trading allows them to do this and without a huge hit to their equity like most sellers. Critics of trading say “it’s a needle in a hay stack” I say they are right unless you use our matching system. OnlineHouseTraders.com proprietary system matches 2 sellers who are willing to trade for each other’s house in regards to location, price, size, and amenities. I think you will start to see many more articles and news reports on house trading. I think if people will learn to be a little more open minded you will see that trading could be the solution to today’s slow real estate market.
    Brian Stroka
    President
    http://www.OnlineHouseTraders.com

  4. I have had 35 years experience in “Trading” here in New Zealand from large family homes to blocks of apartments for retired people downsizing and looking for income to Luxury yachts and commerical properties. Even swapped properties in New Zealand for Australia. It’s easy and fun when you know how, trading up and down and Cash differences or borrowing. A great way of moving on in a slow market.

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