A house swap is a strategy that is rarely used. When you are working with a company that buys and sells a lot of houses, it is possible, and there are hardly any disadvantages to this type of transaction.

The hardest part of this strategy is finding two homeowners who want to swap houses, each having exactly what the other person is looking for.


The benefits of a house swap are:

  • No realtor commissions,
  • Simple transaction of swapping deeds,
  • Low closing costs,
  • The other party and take on underlying mortgages using a:
    • Subject to,
    • Mortgage assignment, or
    • Wrap around mortgage transaction.

An example of how this may work is as follows:

  • Homeowner #1: $200,000 house
  • Homeowner #2: $180,000 house

So homeowner #2 pays Homeowner #1 $20,000 and the two sellers swap deeds. Of course, more creative options can be structured if homeowner #2 does not have that kind of cash and both sellers would still like to proceed with the transaction.

The biggest cost savings of a house swap transaction is the real estate commissions. The two properties combined save the sellers approximately $23,000 in real estate commissions.