Jun 26, 2008 5:29 am US/Central
House Swapping Growing Trend
(CBS)
Today's housing crunch is forcing many sellers to get creative in order to unload their properties and move on.
These tactics go beyond fancy food at open houses or even offering to pay closing costs.
A growing number of services are pairing up anxious sellers. Think of it as matchmaking --- real estate style.
Instead of selling, homeowners swap properties.
'House swapping' has been around for a while for vacation and rental homes, but experts say it's now becoming a popular choice for primary residences, too.
On Craig's List, trade offers have tripled since property postings started in 2006. The top swapping sites have tens of thousands of ads from creative homeowners.
After nearly a year of open houses, Sherry Crosslin was frustrated because she was anxious to move out of state.
"It looked like the only way we were going to be able to move that property was to attach it to a box of Cracker Jacks and give it to a kid going down the street," she laughs.
Finally, Crosslin decided to think outside the box.
She listed her home on several new house swapping sites – ones that pair up compatible homeowners so they can trade properties.
Crosslin found her match on domuswap.com. It was a perfect fit for her and Jerry Stussman. She was looking for a retirement home in Stussman's area and she happened to live closer to his son.
"I was very impressed with his honesty and forthrightness," she says of the man.
He calls the swap "a really lovely house."
Once a consumer registers on a site -- like domuswap.com or onlinehousetrading.com -- the companies send a list of potential matches based on the criteria you submit. When you find a property that interests you, simply contact the seller.
Experts urge potential house swappers to check things out in person.
Once it's a go, you close the deal like you would any other with an attorney or other professional.
If one home is worth more than the other, money is exchanged to make up the difference.
"It's almost impossible to not do it legitimately," Stussman explains. "You have an opportunity to get a third party appraisal. The lender has to approve it and the loan has to be correct and you use simultaneous closings. No money changes hands until all that's done."
The National Association of Realtors says while swaps work for some, it's not always easy.
"You don't have access to the entire marketplace so you are only limited to the properties that are in a swapping type of environment," says Dale Mattison with the National Association of Realtors.
Daniel Westbrook with OnlineHouseTrading.com agrees.
"The biggest downside to swapping is if you're trying to trade into an area where the market is still relatively hot, you are not going to have as many options on properties to trade for."
Crosslin and Stussman admit the limitations, but are happy with their trades.
Crosslin estimates she saved about $30,000 in real estate fees and Stussman says his $50,000 of savings might have him trading again.
"I have two other houses and both are actively listed on the various swap sites."
Most of the sites are free to use although there are fees for upgrades. Online house trading charges $19.95 per listing.
Here are some sites that cater to this growing concept:
http://www.OnlineHouseTrading.com
http://www.DomuSwap.com
http://www.GoSwap.org
http://www.DaytonaHomeTrader.com
http://www.Craigslist.org
(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)
CHECK OUT WHAT'S NEW ON CBS11TV.COM!
