Trading a home plus cash for a more expensive one?

[Doodlebug]

Is it possible to trade a home with another seller or builder? Basically looking to see if it would be possible to offer a swap of properties plus additional cash (on my side as I would be looking for a more expensive property. Don't want to go through the option of listing and selling my house, plus not to keen on writing offers conditional on the sale of my home.

Just wondering if it is possible to do this, and what the process would be. I have heard of someone doing this previously but it was for a home on an acreage that was on the market for awhile and the sellers were motivated.

Is this something that some builders would consider? How would the commissions for the MLS agent work?

[OMG!WTF!]

I did that in 2009 when the market sucked. There wasn't much involved really, just a term on the contract describing the property listed in the "other value" part of the contract. You'll need appraisals of both proprties for tax purposes. But if you can find a willing party it usually works out well for both.

I don't know if builders would want to do this. Doesn't help them much unless they see more value in your trade property. As for the realtors, they get paid as if it were a normal transaction. (the additional cash you put in would have to be enough to covr their commissions).

[Travis Munroe]

^ correct

The tricky part is finding someone else who is willing to trade. You need to find the house you like and then hope they are looking for something like your home.
I see no chance a builder is willing to do this as it creates more hassle for them. In tighter markets like this, builders are more willing to accept your offer of their new home conditional to your place selling but a trade + cash is unlikely!

[Doodlebug]

Thanks for the info folks!

Looking for an acreage/out of city property. Thinking that with the softening market, the acreage/out of town market might soften more than the city. So thought I might be able to offer up a trade of a more "sellable" property (ie more buyers looking in the city) for their property. For something like this to work obviously would offer a deal based on fair market values for both properties....and not try and lowball the seller.

[OMG!WTF!]

That's a pretty good plan. Especially if you fiind some downsizing country folk. My parents would have looked at that sort of deal for sure when they were struggling to sell their acreage. Check with some rural real state specialists. They probably have people who would be interested.

[fundmark19]

Originally Posted by Doodlebug

Thanks for the info folks!

Looking for an acreage/out of city property. Thinking that with the softening market, the acreage/out of town market might soften more than the city. So thought I might be able to offer up a trade of a more "sellable" property (ie more buyers looking in the city) for their property. For something like this to work obviously would offer a deal based on fair market values for both properties....and not try and lowball the seller.

I had tried this with a Realtor owned property in 2010 I think. I knew the Realtor got a property for a steal of a deal so I offered him a trade for my property that had similar value. However would have been an easier sale based on its location. (I thought since things we slower he might bite on it and the property he was selling had a wood framed foundation which scares some buyers off.) The only response he would give me is that we could sell my other property and buy that one for his full list which at the time was aggressively more then he had paid for it.

In the end he sold his property so I assume it all worked out for him