Home Swapping and How it Works.

Since starting Pad4pad in February of 2007, we have received many inquiries regarding what exactly home swapping is and how it can be used to sell your home.  Below is what we know about home swapping and how you can utilize Pad4pad to help sell your home.   What is house swapping?  Home swapping began with vacationers who were tired of paying high prices for hotels and staying in hotel rooms.  Vacationers preferred to enjoy accommodations much like they were accustomed to in their own homes. Web sites were created for the purpose of offering their homes in exchange for other’s homes for vacationing purposes. This concept has progressed as a viable option for individuals trying to sell their homes.  The concept has been referred by many different names such as house swap, home swap, permanent home swap, perm trade and permanent home exchange.  Regardless of the name, they all refer to the concept of “I will buy yours, if you will buy mine.”    The home swap concept is sweeping across the United States due to the current decline in the housing market and the inability of home sellers to sell their homes through traditional means.  The big confusion is… “How do I do it?”  Do I assume the other parties mortgage and they assume mine, do they pay my mortgage and I pay theirs?  Do I pay the difference in their mortgage or they pay the difference in mine?  All of these are legitimate questions and possible solutions to the potential home swap.  Completing a home swap has endless options to use to complete the transaction.  Although for most individuals, they currently have a mortgage and are looking to get out.  House swapping can accomplish this as well.   The simplest form of a home swap involves two individuals who are looking to move to each others areas.  You find each other through Pad4pad.  Once you have identified potential home swap partners, you would send them an offer to swap.  This offer is letting them know that you have a home located where they want to move, and they have a home where you would like to move. From this point on, the home swap process is exactly the same as the traditional sales process you have experienced in the past.  You will schedule showings for each home, make an offer, complete inspections and appraisals, and then close the transaction.  The ONLY difference is when you make an offer to purchase; the offer would be contingent upon them purchasing your home.  Once accepted, it is recommended that you close on both properties at the same time to make the process easier.    There are many benefits to swapping your home in the current housing market.  One of the biggest benefits is that you could avoid price gouging.  Price gouging is avoided since both parties of the home swap transaction will be both buyer and seller.  Parties realize that gouging each other would create a price war, making the process less beneficial.  The most important piece to these permanent home swaps is to be flexible and open minded.  We have witnessed new home builders sitting on empty spec homes swap with existing home owners and turn the existing home into a rental.  We have seen home owners with secondary homes swap their secondary home to have their second home in a new location for vacation uses.  The possibilities are endless.  Although house swapping is a new and exciting concept to sell your home, it is not the only way.  We advise that you continue to utilize all resources available to accomplish your goals.  Using a real estate agent and asking them to market your home through Pad4pad could help you sell your home quicker.