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Michigan House Swap

Metro Detroiters who haven't been able to sell their homes are turning to Craigslist to try and swap them, according to a recent story which ran in the Detroit News, "In a Tough Market, More Try Swapping Homes." According to the article, there were only one or two listings in the House Swap section of the Metro Detroit Craigslist in May, compared with about a dozen listings a week recently. With the publication of this article in the News, I would expect the number of house swap listings to explode.

Leave it to good ol' American ingenuity to try and figure out a solution to the problem of homes that won't sell. This seems like it could actually work for some, especially those who are trying to trade up or downsize in the same market. House swapping is an idea which should be approached cautiously, however. I wouldn't recommend that anyone try doing it without seeking the professional advice of both a Realtor and an attorney. Just because a swap is involved doesn't mean that houses are not actually being bought and sold. Major considerations include proper market valuation and the satisfaction of existing liens.

Although I personally haven't been involved in any trades or swaps, it wouldn't surprise me to see this become more of a common event in our current marketplace.

Posted by Stefan Scholl - Northern Michigan Real Estate on 07/01/2007 12:04 PM

Comments (9)

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9 Comments on Michigan House Swap

JUL

2007

Stefan, I had a call a few weeks ago of someone that wants to buy a Victorian I have on the market. They can't get their home sold and wanted to know if my sellers would swap houses with them. My sellers laughed, why do we want to SWAP one problem for another ?

JUL

2007

True, Missy, but if no one has any liquid assets, and houses are the only currency available, swapping may be an option. This could be the case if someone's problem is another's solution. For instance, if a family from Birmingham needed to relocate to Ann Arbor, and vice versa, I could see this as a viable option.

JUL

2007

Playing match maker is going to get very time consuming, but if works why not. I don't see the benifit to those in Real Estate am I missing something?

JUL

2007

Angela,

I am certainly not in this business to work for nothing. I believe that most if not all MLS systems have different categories for terms of sale, such as land contract, owner financing, etc. I think they should add a "trade" category, if they don't already have one. Or agents can use Craigslist or whatever else to try and find their clients a property to trade. Just like a sale, I would require my clients to pay a commission for my services.

JUL

2007

This business continues to get more and more interesting...Swapping homes??? I also heard about Bartering homes recently and was surprised to be told that it is being done in Michigan. I guess if we're in a media culture that has a show about wife swapping, house swapping is really pretty tame.

JUL

2007

I am one of the co-founders of www.OnlineHouseTraders.com House Trading or Swapping is becoming very popular. The searching of lists of people saying will trade is why we started this site. It matches you with someone who has the home you want and wants the home you have. It also has a feature that just shows you people looking for a home like you have. I think you will see it is a very viable way to sell your home in a slow market. Do I recomend this is the only thing you do, of course not, but certainly use it as an additional tool.

Daniel@OnlineHouseTraders.com

AUG

2007

Stefan...Thanks for your comment on my recent posting (St Joe). I always like to respond on the commentors' sites so I can broaden my personal 'Blogosphere.' I also appreciate the kind words.

Now, as far as your above article goes--if it gets to the point where 'house swapping' becomes a trend in Chicago...then its time for me and the little lady to pack up, change careers again and move on. Or...perhaps we can swap with someone on the Amalfi coast of Italy. I could definitely dig that.

Geno

APR

2008

There are desperate people who can not sell, can not walk away because they have equity in the house and need to move because of the family circumstanses (new job in another state, divorce, etc.). For them swapping is a very real option. Realistically, the safest way of doing it is: I will buy your house if you buy mine. The role of the real estate agent is the same: assist with house showings, appraisals, negotiations, contracts, the difference is that you do it on two houses and two sales, if the houses are in the different states you work with another agent there. And collect your regular commission. The number of websites that offer help with finding swapping partners is growing fast. Here is a new one: www.BestHouseSwap.com My feeling is that the agents that are open-minded and try working with these unconventional situations are going to benefit greatly.

JUN

2008

Both my husband and I have been relocated and our house has been for sale for almost an entire year. After reducing the price several times and looking at all the bank owned homes we've decided that swapping homes would work for us. Anything to get out of our house and not have a 2 hour communte each way! It may sound crazy for most of you but doesn't it sound crazy to drive 2 hours each way for your job??? (not including the crazy traffic that occurs) We are asking less for our house than what we owe. I'd rather swap than lose any more money! P.S. For all the realtors out there, we were advised to go through a realtor for making the swap. I guess there is some money in it for you!

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