It's an option; but more difficult and more complicated than it's worth.
The simple solution that works every time - List your property for sale; and once sold, take the proceeds and pruchase a property closer to town.
For you to trade your house, you'd need to find another house that's currently available. And the owner of that house would have to be willing to trade, and would want your house.
On top of that, you and the other person would still have to account for any disparity in the equity in the two homes. Just making up numbers, but let's say your home is worth $150,000. It's paid for. You see a home closer to town that's worth $150,000. That house has a $100,000 mortgage on it. In that case, if you just "traded" your $150,000 homes, you'd lose $100,000. So the other person would have to come up with $100,000. Most likely, he'd do that by selling his current home and buying yours. So you and he are no longer trading. You're just selling yours and buying his, and visa versa.
Best thing to do is just sell your home. Then you'll have your pick of any homes closer to town that are for sale. You won't have to worry about locating a home with an owner who's willing to trade and who--for whatever reason--wants to move further away from town.
Hope that helps.
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Read Don Tepper’s answer. (TU to you, Don.) The likelihood that you can work out a “trade” of your house for another house is not good. Selling/buying a house is not the same as selling/buying a car. You can’t go to the new/used home lot and work out a trade for your house for another house.
Find yourself an experienced local Realtor. Sit down with the Realtor and discuss your needs. It sounds like you have the means to achieve your goal. You need professional guidance. It is available. Ask those who you know for a recommendation of a local real estate professional who can help you.
"Swaping" homes is a real estate possibility but not a commonly accepted one in the business. These types of arrangements are most often identified and arranged for by the home owners through personal advertising and/or contacts.