House trading is a type of real estate transaction both buyers and sellers find simpler and more convenient than traditional buying and selling. While the exchange isn't quite as simple as swapping keys and moving in right away, there can be advantages for those wishing to make a quicker change.
However, a home trade-in program isn't right for everyone. Real estate agents can assist with the process, but it can still be complicated if the timing doesn't work out perfectly.
So, how can you know if trading is the right option?
Definition of a "trade-in house"
The terms "trade-in" refer to the swapping of real estate property. The trade-in program allows sellers to find the best replacement home for the home they want and stay in their first property.
Trade-in programs eliminate the pressure of locating and selling a property to live in, staying in a hotel or renting a house to move. In addition, the purchaser does not have an obligation to coordinate the sale or buy of a new house.
How it works
Simply put, swapping properties is like buying or selling your home to someone. However, rather than having only one transaction, you have two transactions – one selling the home and one buying. Each house is assigned to a separate buyer and seller.
Advantages
It's simple to sell to make money through trading versus purchasing. Both the purchaser and seller can avoid real estate commissions when they are not represented by a real estate agent.
When you trade houses, you can avoid the hassle of paying for storage of furniture and other items while you wait for a sale to go through. It also makes it easier to get financing: as long as you have a contract in place to sell your home, your current mortgage payments won't count against your income.
Downsides
The main disadvantage of trading houses is you're likely to have fewer options to choose from compared to a traditional home search. While size and features might be the same, you may not end up in the exact location you prefer.
Another possible downside is if timing doesn't work out perfectly, you could potentially have to pay two mortgages at once during the overlap.
There are many scenarios where trading homes can be a quick and painless transaction. However, it's important to consider the downsides as well as the advantages. Consulting a real estate agent about your options is the best way to begin if you're not sure which way to go.
About the Author
Pablo Torres
Pablo Torres is a qualified Real Estate Agent with over 10 years experience in real estate sales, due diligence and contract negotiations. Knowledgeable of South Florida neighborhoods. Currently, Pablo focuses his skills on all markets in the Miami metropolitan area.
He has the ability to understand sellers, buyers and renters needs with excellent communication. Fluent in English and Spanish with working knowledge of Portuguese. Pablo has impeccable reputation and a passion for real estate.
He graduated with a degree in International Business from Florida International University (1998) and a masters in business administration from Nova Southeastern University (2003). He had embarked on a career in commercial banking before being driven to switch to one of his passions-real estate.
Dedication, perseverance and punctuality allowed Pablo to sell different types of properties. His expertise with South Florida's cultural diversity has allowed him to sell real estate to both buyers and sellers.
Part of what makes Pablo so successful is his dedication to exceptional customer service and his devotion to their needs, whether they are buying or selling properties. Pablo has many repeat customers who cite his willingness to work long hours to resolve the toughest issues, as a reason why they stick with him. Torres integrity, attention to detail and careful handling of a transaction, exceeds their expectations. Sellers know that Pablo's extensive and personalized marketing strategies, means that their listing is seen by most buyers.
As a real estate professional, Pablo has the tools to represent your interests in virtually any transaction. Pablo's ability to interview, reason and figure out the smallest details makes every successful transaction a seamless process. Pablo is the right real estate professional to hire.
