House Trades & Owner Finance

triciaeDecember 7, 2008

Over the past few weeks we've seen homes offered for trade and/or with owner finance start turning up but on a very spotty basis. This week, the number of such ads has exploded.

Anybody else seeing this in their areas?

We're in SE coastal CT. We are not in a subprime nor high foreclosure area; but the market is just plain dead...homes sitting months without sales. Even large, beautiful directly on-the-water properties are just not selling. Don't really have a good sense for prices because there just aren't enough sales to get a feel for comps although I'm sure we're probably down at least 15%.

The "For Trade" ads I've seen have been 100% people looking to trade within the immediate geographical area. So, it would appear to be a pent-up demand to move as opposed to a real need due to job relocation, divorce, etc. Have seen several ads stating, "Looking To Downsize". That could mean loss of job & the need for a less expensive property?

Anyway, I'm curious if this type ad is popping up all over the country? Avoiding the realtor/banking route & sorta a barter system developing to move homes??

/tricia

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rockmanor

I've only seen one such ad, but I do know of a situation where someone traded his house, valued at about $1.2MM, for a smaller house in the same neighborhood, valued at about $750K (plus the cash difference.) The man who traded down is self-employed and has had very little income this year. The cash generated by the trade enabled him to pay off his remaining mortgage. BTW, those values are probably 20% less than what the houses could have sold for two years ago.

    Bookmark   December 7, 2008 at 4:59PM
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cordovamom

I haven't see house trades or owner financing in my area yet. I do remember back in the 80s when interest rates rose to 18% that owner financing was very popular and common. Interest rates are low, so in general I wouldn't think there would be a large interest in owner financing unless credit was so tight that the buyer couldn't get credit. Is that what's happening in your area?

    Bookmark   December 7, 2008 at 9:26PM
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qdognj

T/
Thought you like this link

Here is a link that might be useful: House swapping

    Bookmark   December 11, 2008 at 9:49PM
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