Sneezyone Posted March 15, 2022 Share Posted March 15, 2022 I'm asking this question here because there are so many people with interesting and unique experiences that might be able to give me some insight. We are selling our investment property to finance the purchase of a less expensive investment property. The offer we have is from a family that wants more space. Their home is, coincidentally, a perfect fit for what we're looking for. Essentially, we want to sell our homes to each other, each sale contingent upon the other. Has anyone done or heard of such a transaction? How did it work out? Quote Link to comment Share on other sites More sharing options...
Frances Posted March 15, 2022 Share Posted March 15, 2022 Several people in my neighborhood did this. Older couples looking to downsize swapping with younger families wanting more space. And everyone wanting to stay in the neighborhood. 2 1 Quote Link to comment Share on other sites More sharing options...
rebcoola Posted March 15, 2022 Share Posted March 15, 2022 I don't have experience with this situation but I would think if both of you agree it would be quite cheap and easy for lawyer to take care of the sale for you. We lined up our own rent to own buyer through friends and used a lawyer and it cost a few hundred dollar vs. a percentage of the sale. 5 1 Quote Link to comment Share on other sites More sharing options...
prairiewindmomma Posted March 15, 2022 Share Posted March 15, 2022 I have seen it done. It gets a bit hiccups if either/both sides are bank financing the transaction and the appraisals show the properties at different values—you have to meet the minimum for the loan—but both parties also have to feel good if the appraisals show significant differences. On the upside, using lawyers rather than realtors is so much less expensive!! 1 1 Quote Link to comment Share on other sites More sharing options...
Sneezyone Posted March 15, 2022 Author Share Posted March 15, 2022 1 hour ago, prairiewindmomma said: I have seen it done. It gets a bit hiccups if either/both sides are bank financing the transaction and the appraisals show the properties at different values—you have to meet the minimum for the loan—but both parties also have to feel good if the appraisals show significant differences. On the upside, using lawyers rather than realtors is so much less expensive!! Yeah, this is always a possible hang-up. We got an early appraisal on ours and then did updates/fixes so it should appraise well. Theirs has an unheated/cooled garage conversion so we'd need to run a register to the space (which would obvs add value). We have an agent representing us in our sale already but they could possibly sell theirs FSBO and save a bunch. The rental market is flipping insane and I know lots of people being priced or pushed out of rental homes. This is the only solution we could think of to get an affordable, long-term rental for our family member. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted March 15, 2022 Share Posted March 15, 2022 (edited) My boss just traded a property with a cabin and a pond and big barn for 50 acres that connected to his existing property. No real estate agents involved. edited to add also no financing so that part may be trickier. Edited March 15, 2022 by Scarlett 1 Quote Link to comment Share on other sites More sharing options...
KatieJ Posted March 15, 2022 Share Posted March 15, 2022 There is a 1031 swap you might be able to do, since you are doing rental again. I don’t have enough knowledge to give you particulars, but when you sell the property, you never get the check personally, it goes directly into the next sale. My sister has done it, But she used a realtor experienced in it. Our investment company told us about it as well, but we haven’t sold yet. 1 Quote Link to comment Share on other sites More sharing options...
KatieJ Posted March 15, 2022 Share Posted March 15, 2022 We sold our home of 25 years thru text messages. We then used a title company for our closing….neither of us had to pay realtor fees. Easy peasy. I would get an appraisal of your home and then talk with a title company. Quote Link to comment Share on other sites More sharing options...
Sneezyone Posted March 15, 2022 Author Share Posted March 15, 2022 43 minutes ago, KatieInMN said: We sold our home of 25 years thru text messages. We then used a title company for our closing….neither of us had to pay realtor fees. Easy peasy. I would get an appraisal of your home and then talk with a title company. We had it appraised in Jan but made repairs after (carpet, paint, drywall, new stove, roof flashing repairs, etc. so it's not especially helpful anymore. Quote Link to comment Share on other sites More sharing options...
Sneezyone Posted March 15, 2022 Author Share Posted March 15, 2022 50 minutes ago, KatieInMN said: There is a 1031 swap you might be able to do, since you are doing rental again. I don’t have enough knowledge to give you particulars, but when you sell the property, you never get the check personally, it goes directly into the next sale. My sister has done it, But she used a realtor experienced in it. Our investment company told us about it as well, but we haven’t sold yet. I really need to look into this. If I'm to mistaken, we have to do the paperwork pre-sale. Quote Link to comment Share on other sites More sharing options...
prairiewindmomma Posted March 16, 2022 Share Posted March 16, 2022 1031 requires equal or greater value as well…..great way to avoid capital gains taxes if you can meet all of the criteria. 1 Quote Link to comment Share on other sites More sharing options...
Sneezyone Posted March 16, 2022 Author Share Posted March 16, 2022 (edited) 12 minutes ago, prairiewindmomma said: 1031 requires equal or greater value as well…..great way to avoid capital gains taxes if you can meet all of the criteria. I thought this too, which is why I dismissed it initially when DH mentioned it a couple months ago, but you can actually do a partial 1031 to shield some of your gains and use the rest for other purposes. I mentioned it as a possibility to our agent (who is a RE investor herself) and she gave me the name of her CPA who is also a qualified, independent, whatever its called. We'll talk tomorrow. Hopefully we'll get good news. Edited March 16, 2022 by Sneezyone 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.