By Sara Huebener
It is amazing the number of questions we are getting these days about people wanting to know about housing swaps! It appears to be the latest craze in real estate ideas, and I suspect much of it is brought about by HGTV. I love the channel, though sometimes I think it adds confusion to the public regarding the reality of the industry. Have you seen "My House is Worth What"?
Housing swaps are essentially just what they appear to be. Two sellers "swap" houses via real estate transaction. Much of the craze does not take place with local properties, rather, properties in differing states are swapped. It is essentially a new form of bartering, a home-matchmaker type arrangement.
We have actually seen one housing swap transaction take place, and that was sometime in 2004 between a couple of friends here in the Twin Cities. In the real world, where these swaps are being coordinated online, buyers must be wary of what they are obtaining in the swap, because much of what is being relied on is done via photographs and online documents. A real sense of trust must be present. It is best to consult a real estate attorney and a realtor, make sure both parties are using the same title company, and that both transactions are closing at the same time (so one party does not get stuck with two mortgages). Also, be wary of liens.
This is one trend to watch. We suspect it will be more "noise" than reality. In the long run, I think it would be easier to find a buyer for a listed property, and have those sellers turn around and find a house they love, as opposed to trying to find a seller who has the house you want and also wants to buy your house. If that makes sense......
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