Can’t sell your house? Change it!

In some of the hardest-hit markets in the country, homeowners have discovered a creative new way to sell their homes: through online home exchanges. Home swapping was originally developed as an affordable vacation option, where homeowners from different locations would come together and trade their homes for a short period of time. This helped both parties reduce their vacation costs and gave both an insider’s view of another community.

The practice of home exchange became quite popular in the 1970s and today it is emerging in a new form. Permanent house swapping is based on the same idea (owners switch places), but in this case, each owner buys the other person’s house.

So why are property exchanges becoming popular today? Many US markets are experiencing an influx of inventory, but not much demand, making it very difficult to sell. In addition, the economic downturn has resulted in the loss of a large number of jobs, leaving homeowners struggling to make their mortgage payments.

Those with increasing financial pressures are motivated to sell quickly, so they often drop the asking price and work with a real estate agent. Because times are tough right now, permanent home swapping is a trend that is gaining momentum because it brings together motivated buyers and sellers.

To find potential buyers, homeowners join one of the many websites dedicated to real estate matching. Sites like OnlineHouseTrading.com, DomuSwap.com, GoSwap.com, and even Craigslist.com allow homeowners to post an ad for their property and specify what they are looking for in return. Some sites are free to use, while others charge fees to access full listing details.

Many of the exchange sites also feature international user postings, for people who want to search for a home outside of US borders.

People who are trying to sell their home on their own, as well as those who work with a real estate agent, are looking forward to online home exchanges as a new field of marketing. No hard numbers are yet available to tell us how many successful exchanges have occurred, but hundreds of people join these sites every month. Of course, the more members each site has, the more potential buyers there will be. This increases your chances of having a successful home exchange.

One caveat related to home swapping is the fact that each party must be willing to live in the other person’s area. It can be difficult to match location, price, and property needs, especially if either party has a family moving in tow. Another thing to keep in mind is that home exchanges are not direct exchanges: some houses simply cost more than others, regardless of whether the property is for sale or not.

Each owner officially sells the home to the other, which means that all the standard paperwork, home inspections, closing costs, and financing issues are the same as in any other real estate transaction. That’s why it’s still important to have a real estate agent working with you. He or she can handle the details of the sale, advertise your home using these exchange sites, and market the home using other venues.