House Swap

A house swap is a strategy that is rarely used but when you are working with a company that buys and sells a lot of homes, it is possible and there are hardly any disadvantages to this type of transaction.

The hardest part of this strategy is finding two homeowners who want to swap homes and they each have exactly what the other person is looking for.  If that can be achieved, the benefits are…

  • No realtor commissions
  • Simple transaction of swapping deeds
  • Low closing costs
  • Underlying mortgages can be taken on by the other party using a subject to, mortgage assignment or wrap around mortgage transaction.

An example of how this may work is as follows:
Homeowner #1:  $200,000 home

Homeowner #2:  $180,000 home

Homeowner #2 pays Homeowner #1 $20,000 and the 2 sellers swap deeds.  Of course, more creative options can be structured if homeowner #2 does not have that kind of cash and both seller would still like to proceed with the transaction.  The biggest cost savings in this transaction is the real estate commissions.  The two properties combined save the sellers approximately $23,000 in real estate commissions.