The best way to move without having to buy or sell your home on the open market is house swapping. Working with a company that buys and sells many homes occasionally yields an opportunity for two or more homeowners, that want to live in different homes or areas, to trade houses.
- Home #1 Value: $180,000
- Home #2 Value: $210,000
- Homeowner #2 can pay homeowner #1 $30,000 and then both homeowners basically swap deeds for their properties
The disadvantages are few, however these transactions are very rare because it's unusual for two or more people to have exactly what the other party wants.
New Dream Home Solutions buys and sells a high volume of homes and can occasionally broker a home swap in exchange for a fee from one or both homeowners. If successful, this is faster and cheaper than selling using other strategies. Specifically, you can save on Realtor commissions on both sides which in the above example could amount to $10,800 for the $180,000 priced home and another $12,600 for the $210,000 priced home. That's a total savings of over $23,000.
- What about the loans on the existing homes?
- If one or both homes have mortgages (which is usually the case) then either the buyers can get new loans, sell the properties subject-to, or sell the properties with wrap-around mortgages. Many creative financing strategies can be employed.