Home Selling in Tyler>Question Details

Tracyewilson, Other/Just Looking in Tyler, TX

is it possible to trade one home for another with out a lot of fee's? I own a water front lot with a small home. I want to move into town.

Asked by Tracyewilson, Tyler, TX Sat Mar 27, 2010

My place is paid for. I no longer want to drive this far back and forth to work and I am tired of the constant upkeep involved with waterfront property. I have very poor credit and I hoped to be able to trade my place out right maybe to a broker ect for a home in town. MY place was appr.4 years ago for 90,000.00 when I was considering borrowing money to add on ect. This was just something I was thinkin about, thanks

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The responses you received so far are based on reality, but I always like to think outside the box. The case of doing an outright exchange is not as easy as so far portrayed, but there are a handful of places and websites you might consider using to achieve your desired outcome. For instance, many people house swap for a period of time. Ideally you may find this as the best solution as once you do in fact get closer to in town you find you miss the comforts of home. Seeing it may only be a summer that you'll have to deal with your homesickness as opposed to a permanent exchange, you'll be comforted to know such a situation doesn't exist and you will have your home back shortly. While there are pros and cons to these type of arrangements, the more you network on these type of services the more you opportunities you'll have to find just the right place and right situation. Consider it a great way to take a vacation as others would enjoy the lake front opportunity you're giving them. You never really know what you had until it's gone.
0 votes Thank Flag Link Sat Mar 27, 2010
Possible...but I think in all likelyhood improbable as envisioned. Finding someone with the property you want and them wanting yours I think is very unlikely and likely pretty complicated. Think for example theirs is worth $100000 and yours is worth $90000. How do you get or pay the difference? If the new home has a mortgage how does it get paid off?

I've seen people do it, but typically they know each other and trust each other enough to work out the details or both have enough cash to compensate the other for the difference.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sat Mar 27, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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It is possible...not always easy but possible. Trading out right may make it a little more difficult and it could take a while to make something like that happen. I'm a big believer in thinking outside the box and you never know until you try. I will check and see what if anything might be possible for something like that. Also it may be a matter of letting everyone know what your trying to do and wait for the right deal to come along...if that makes sense. With out checking into it off the top of my head I don't know of anything but that doesn't mean there's not a possiblity. Feel free to contact me directly and good luck!
Web Reference: http://www.angelakhill.com
0 votes Thank Flag Link Sat Mar 27, 2010
Theoretically, yes.

Practically, no.

If you and someone else found properties you wished to trade, you'd just pay whatever transfer tax Texas imposes, plus some money (probably under $1,000) for legal fees. Since it'd be like you and the trader doing a for sale by owner, you wouldn't have a real estate commission. If you traded, you wouldn't have all the junk fees that accompany mortgages. You and the trader would likely want an appraisal, though, so that'd cost a few hundred dollars per house.

But it won't happen.

Why?

First, it's not just an issue of you finding someone who wants your home. You have to want theirs. So even if there were someone in town who wanted a water front lot, you'd have to like their place and they'd have to like yours. Consider that often it takes 25-50 showings to get an offer on a property. So if you were selling your place, you might have, let's say, 30 people look at it before getting an offer. What that means here is that 1 in 30 people would want your home. And it's the same with the home in town. Maybe 1 in 30 would want that one. So even if you found someone in town who wanted a waterfront lot, the odds are 1 in 900 (30 x 30) that both of you would like each other's homes.

Second problem deals with the value of the homes and with the equity in them. Let's say both homes are worth the same--$150,000. But one was bought about 6 years ago and has almost no equity. The other was bought 15 years ago and has $30,000 equity. Well, the person with the home with equity isn't going to just trade. If he did, he'd be giving up $30,000 in equity. So, to make the trade work, the one with the equity would be willing to trade only if the other person also paid $30,000. It gets even more complicated if the houses aren't worth the same. Would someone in town be willing to trade a $200,000 home for yours that's worth only $150,000? Not unless you chipped in $50,000.

So there are really a lot of hurdles to trading homes. The two big ones are finding someone willing to trade, and then equalizing the values and the equity.

If you're serious about moving back into town, the best thing to do would be to sell your home. Then buy one in town.

Hope that helps.
0 votes Thank Flag Link Sat Mar 27, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
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