I spoke to a gentlemen yesterday from one of our local neighborhoods, Bentwater here in the Lake Conroe area. He and his wife are looking to move into a larger home. They are retirees and "downsized" a year ago, but realized that they went to small. They are now looking to move to a little larger home either in the same area or possibly The Woodlands. Their home is paid for and they would also consider trading their home but don't know how to go about it.
I explained that it is possible to trade his home for another home. Not to confuse this with a "1031 exchange", which is only eligible for investors and not a primary residence. You can trade or exchange a home simply by finding another interested seller in the location you want to be that is considering a move to your location. This eliminates the need to deal with mortgages if both parties have free and clear title. However, if one or both parties have a mortgage loan, then you can either assume the loan (if the lender will consider an assumption), or if you are willing to consider owner financing terms. Owner financing can be properly setup through your real estate agent along with a real estate attorney or escrow company.
Trading houses is another option to consider when selling your home. Actually, in our local MLS, there is an option for your agent to select this financing term to offer to potential buyers. When getting ready to sell, discuss all your available creative financing terms to offer buyers like, seller financing, conventional, FHA, assumable, owner second, owner first, or even trade. Your agent will know where to advertise these creative financing options to get a buyer in yoru home quickly. In todays market it is wise to consider all your options...make sure you speak to a well educated real estate agent to determine the best options for you!
If you have any questions concerning creative finance options or have any real estate questions...please don't hesitate to contact me anytime.
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