meeting, the Task Force recommended that Realcomp proceed with a campaign to educate MLS Subscribers (and consumers) of the benefits associated with exchanging homes.

What is a House Exchange?

To define the term “house exchange” as simply as possible, it is when two (2) homeowners (or sellers) agree to purchase one another’s homes.

House exchanges can be facilitated between sellers wanting to trade up, trade down, or trade evenly (and an "even trade" is not required).

In these transactions, the trade involves the living locations—NOT the MORTGAGES. Each offer to purchase is contingent upon each homeowner selling to the other, and for this reason, simultaneous closings need to occur. Also, the properties must appraise out. Other than these differences, all of the normal rules apply.

In today’s market, many REALTORS^® do not ask their sellers what they plan to purchase until the property they are selling actually sells. However, in an exchange scenario, this information is important to have upfront and disclose to other agents in order to facilitate exchanges successfully.

Consumers who are motivated to move based on various factors (i.e. employment, marital status, financial considerations, etc.) may be more open to the idea of an exchange and less concerned with property ammenities if the move can help them to meet specific needs, avoid a short sale, or prevent foreclosure. Based on this, introducing the exchange concept to your sellers early on and collecting information from them about the property they want to purchase can actually help you to help them achieve their ultimate desired results faster.

With over 52,000 single-family properties on the market in Southeast Michigan, we believe the opportunities for Realcomp REALTORS^® to facilitate exchanges to be great.

Property Exchange Benefits include:

• Generate sales during a down market;
• Match motivated buyers and sellers;
• Preserve home values (and deter the further decline of sales prices);
• Eliminate “double mortgage payment” concerns;
• Further reduce on-market inventory; and
• For those who are involved in short sale-exchange transactions, this can actually allow them to close on their new home before their credit is negatively impacted by the short sale.

Learn How to "List" and "Find" House Exchanges in the MLS!

• Use Realcomp's tip sheet for listing house exchanges to ensure other MLS Subscribers will be able to find your listing as match in the MLS system.
• Use Realcomp's tip sheet for finding house exchange matches in the MLS system.
• View a brief slide show on how to list and find house exchanges in the MLS.

faqs

• Are the "Realcomp House Exchanges" related to 1031 Exchanges? Since the house exchanges we're describing above deal with the exchange of personal property (for personal use), they would not qualify for 1031 exchange treatment. However, if you are unsure about your particular exchange scenario, please consult your Broker.
• This is a great idea for empty nestors looking to make the move to Florida or Arizona. Could we team up with outstate agents to facilitate such a move? I am also licensed in Florida and I know for a fact, during this economy, there are Floridians looking to sell their southern homes and move back to Michigan with family. Since Realcomp's listings are now being syndicated to many different websites all over the Internet through our partnership with Point 2 Technologies, consumers (and agents) from all over will be able to access your exchange listings and the public remarks of these listings, which will contain a brief summary of what your sellers are interested in purchasing.

Online Article References to House Exchanges

• Can't sell your house in this market? Trade it, Christian Science Monitor, 03/23/2009
• Newest Trend: House Swapping, KETKNBC.com, 03/23/2009
• Trouble Selling Your Home? Why Not Try a House Swap, 03/05/2009
• Home-Swapping Sites No Easy Fix for Desperate Sellers, SmartMoney, 06/03/2008
• Home for Sale By Any Means, Money, 04/30/2008
• House Swapping: Trading Spaces Forever, NuWireInvestor, 02/20/2008
  
• I’ll Buy Your House If You Buy Mine, Wall Street Journal, 02/01/2008
  
• House Swapping Trend Emerges, ConsumerAffairs.com, 01/31/2008

Was this information helpful to you regarding this subject? Please let us know by sending a brief e-mail. Thank you!

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