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Old 05-13-2021, 06:00 PM
 
Location: OCNJ and or lower Florida keys
803 posts, read 1,829,634 times
Reputation: 814

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Just to be asking has anyone has ever made a even up trade on a house? What were some of the problems or issues that arose. I have a home in South Jersey and I am considering trading it even up for a house in Florida Keys. I already have a willing homeowner that will trade. I am more reluctant. Both homes are debt free and would trade as is condition after home inspections. They both would have no problem getting a CO Anyone ever been through a house trade? Besides paying the lawyers to draw up the paperwork what other costs would be involved? I did live in the house 2 of the last 5 years and we are talking in the 400k value range. pros and cons versus selling outright?
Not really sure about the federal or state tax consequences. I will need to ask the accountant but I am certain some capital gains would somehow be due the taxman. Could it be as easy as a simple deed transfer at the courthouse?
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Old 05-13-2021, 06:32 PM
 
1,806 posts, read 855,425 times
Reputation: 6436
Quote:
Originally Posted by bigh110 View Post
Just to be asking has anyone has ever made a even up trade on a house? What were some of the problems or issues that arose. I have a home in South Jersey and I am considering trading it even up for a house in Florida Keys. I already have a willing homeowner that will trade. I am more reluctant. Both homes are debt free and would trade as is condition after home inspections. They both would have no problem getting a CO Anyone ever been through a house trade? Besides paying the lawyers to draw up the paperwork what other costs would be involved? I did live in the house 2 of the last 5 years and we are talking in the 400k value range. pros and cons versus selling outright?
Not really sure about the federal or state tax consequences. I will need to ask the accountant but I am certain some capital gains would somehow be due the taxman. Could it be as easy as a simple deed transfer at the courthouse?
A 1031 Exchange USUALLY doesn't apply to personal residences, but it can in certain circumstances. The article linked below might answer your questions.


https://www.1031exchangemadesimple.c...e%20situations.
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Old 05-14-2021, 08:46 AM
 
Location: Florida -
10,033 posts, read 12,725,239 times
Reputation: 21035
Apparently a large number of people make 1031 exchanges of residential investment and/or rental properties. I looked into a three-way exchange and almost had one go through - when we moved from a Condo in one Florida city to a Condo in another.

My perception of such exchanges are that there are a lot of 'squares' to color to make it happen -- which may preclude many exchanges. Craigslist, for one, has a property swap/exchange forum.
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Old 05-16-2021, 03:35 PM
 
Location: North Idaho
26,827 posts, read 36,013,198 times
Reputation: 57050
If you can find someone who wants to swap, then you can do it.


The problem I always ran into was that the other party wanted to misrepresent the value of their trade. I'd do some research and their property would be worth about 25% of what they were claiming for it. Other very similar properties that were right there would be selling for a quarter of what they were claiming for theirs.


So be very careful if you want to do a swap.
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Old 05-17-2021, 01:00 PM
 
2,583 posts, read 1,143,015 times
Reputation: 9095
Just a couple days ago my sister was telling me that her new neighbors were part of a three way house swap. She didn't have anymore information other than that, and we were speculating be as to how it would work. We didn't know if realtors were involved. There isn't a lot of inventory in our area, so we were wondering if that played a part. We don't know if the people are all local or coming from other areas/States. If I were wanting to move to a different area I wouldn't be adverse to the idea. I would want to see the property first and have it appraised, tho.
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Old 05-18-2021, 06:38 PM
 
Location: Sandy Eggo's North County
3,587 posts, read 1,340,854 times
Reputation: 5061
Friend of mine did this. His Carlsbad waterfront condo, for a buddies 4bd2ba house on Fire Mountain in Oceanside. Things were going along great, until he got an updated tax bill. From $2 grand/year to $11 grand a year. Just like that, it went up $9000/yr. He's glad he doesn't have an HOA ($350/mo) anymore, tho. SURPRISE!
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Old Yesterday, 10:22 PM
 
Location: OCNJ and or lower Florida keys
803 posts, read 1,829,634 times
Reputation: 814
Just to clarify I am not interested in a 1031 exchange I want to trade homes even up. I have 3 houses already 2 in south jersey and one in the Florida keys. I want to trade one in south jersey for another one in the Florida keys. I have a willing homeowner the next street over from me ready and willing to trade. We want to even up exchange house for house both are debt free.
I already am a Florida resident, I am not moving anywhere. I would still own one home in NJ and now two homes in Florida. I was just wondering if anyone else has done this type of transaction? did you need just a lawyer? I am going to see my accountant next week and hopefully he can help with the red tape questions that will be involved for taxes.
just a fyi We have both seen each others homes we agree a even up swap with no money exchanged between us just property deeds.
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Old Today, 08:59 AM
 
Location: NC
7,870 posts, read 10,409,498 times
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My old memory tells me you may still have to pay transfer taxes. This is probably considered bartering?
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Old Today, 09:03 AM
 
1,806 posts, read 855,425 times
Reputation: 6436
Quote:
Originally Posted by bigh110 View Post
Just to be asking has anyone has ever made a even up trade on a house? What were some of the problems or issues that arose. I have a home in South Jersey and I am considering trading it even up for a house in Florida Keys. I already have a willing homeowner that will trade. I am more reluctant. Both homes are debt free and would trade as is condition after home inspections. They both would have no problem getting a CO Anyone ever been through a house trade? Besides paying the lawyers to draw up the paperwork what other costs would be involved? I did live in the house 2 of the last 5 years and we are talking in the 400k value range. pros and cons versus selling outright?
Not really sure about the federal or state tax consequences. I will need to ask the accountant but I am certain some capital gains would somehow be due the taxman. Could it be as easy as a simple deed transfer at the courthouse?
I don't think that the swap is going to be greatly complicated as far as the legal process is concerned. I just don't see how it's going to be any different than if you just consider it as two separate transactions. In other words, you're selling one house and buying another one, and the other party is selling one house and buying another one. It just happens to be a coincidence that the "other party" in both transactions is the same person. I don't think that the tax consequences or the legal process would be one bit different if the "other party" were NOT the same person in each transaction.
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