The Truth About Trading Houses Online
Interested in trading your house but not quite sure what to believe? Do you have agents telling you it isn’t legitimate, but you’re hearing on the news that it is?
House Trading is a legitimate business that matches two sellers and two buyers together to trade homes.
Let Me First Identify Myths and Truths About House Trading:Your equity position matters. It doesn’t matter if you have $1000 equity or $500,000 equity because you are getting a mortgage for the other house.
It won’t work because banks won’t let you trade mortgages. That is true but with House Trading both parties are simply buying each others homes. Both parties acquire a new mortgage or pay cash.
Both homes need to be the same price because if not you have to make up the difference in cash. That would be like someone telling you if you sold your $300k home that you had to buy another $300k home. As long as you can qualify for the mortgage you can buy what ever you want.
Let’s look at a couple of typical scenarios; upsizing and downsizing a home. House Trading Scenarios
Upsizing:
Seller A has a home valued at $350,000
Seller B has a home valued at $450,000
Equity doesn’t matter! Seller A would get a loan for Seller B’s house and Seller B would get a loan for Seller A’s house.
They will simply buy each others homes.
Downsizing:
Seller A has a home valued at $550,000
Seller B has a home valued at $450,000
Equity doesn’t matter! Seller A would get a loan for Seller B’s house and Seller B would get a loan for Seller A’s house.
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