News Summary

When it comes to permanent house trading, one local Realtor described the transaction as a little less trade and a little more purchase.

More people are turning to "house swapping" Web sites as an alternative method to dealing real estate. Sellers can register their available homes on sites such as craigslist.com and domuswap.com and receive a list of potential trade matches based on the criteria they submit. If both property owners can agree to terms, a trade ensues.

"They call it trading, but they actually just buy each other's houses," said Reva Owens, president of the Middletown Board of Realtors.

Owens said the idea isn't a new one. In fact, she coordinated a trade about five years ago, she said.

"It's been going on for awhile," Owens said. "It's a tricky thing, but it can be done."

Owens said she was showing a property when a couple walked into the open house and fell in love with it. The family selling the home also liked the interested couple's home, and so they agreed to buy each other's homes.

Making it legal

Legal house swapping is actually two transactions, Owens said. The two parties take out a mortgage to buy the other's property based on an agreed upon price. If one home is valued higher than another, money can be exchanged to make up the difference. And most experts encourage home swappers to check out the property they are interested in person.

"You can't just swap homes. You want to make sure it's all done legally," Owens said. "You have to make sure everything you do is okay with the mortgage companies."

All mortgages have to be satisfied, she said, and title companies must be contacted.

"Be very careful," Owens said. "It has to be done legally. You need someone to guide you through the process."

Owens suggests going through a Realtor, but lawyers also can oversee the process.

"You definitely need someone whose representing you, making sure everything is being done correctly," she said.

Contact this reporter at (513) 705-2551 or mengle@coxohio.com.

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