Real estate trading

Investigation of potential copyright issue Please note this is about the text of this Wikipedia article; it should not be taken to reflect on the subject of this article. Do not restore or edit the blanked content on this page until the issue is resolved by an administrator, copyright clerk or OTRS agent.
If you have just labeled this page as a potential copyright issue, please follow the instructions for filing at the bottom of the box.
The previous content of this page or section has been identified as posing a potential copyright issue, as a copy or modification of the text from the source(s) below, and is now listed on Wikipedia:Copyright problems (listing): http://online-aste.com/dettaglio/aste-online/real-estate-trading-aste/ (Duplication Detector report)   Unless the copyright status of the text on this page is clarified, the problematic text or the entire page may be deleted one week after the time of its listing. Temporarily, the original posting is still accessible for viewing in the page history.
Can you help resolve this issue?  If you hold the copyright to this text, you can license it in a manner that allows its use on Wikipedia. Click "Show" to see how. You must permit the use of your material under the terms of the Creative Commons Attribution-Sharealike 3.0 Unported License (CC-BY-SA) and the GNU Free Documentation License (GFDL) (unversioned, with no invariant sections, front-cover texts, or back-cover texts). Explain your intent to license the content on this article's discussion page To confirm your permission, you can either display a notice to this effect at the site of original publication or send an e-mail from an address associated with the original publication to permissions-en at wikimedia dot org or a postal letter to the Wikimedia Foundation. These messages must explicitly permit use under CC-BY-SA and the GFDL. See Wikipedia:Donating copyrighted materials. Note that articles on Wikipedia must be written from a neutral point of view and must be verifiable in published third-party sources; consider whether, copyright issues aside, your text is appropriate for inclusion in Wikipedia.  To demonstrate that this text is in the public domain, or is already under a license suitable for Wikipedia, click "Show". Explain this on this article's discussion page, with reference to evidence. Wikipedia:Public domain and Wikipedia:Compatibly licensed may assist in determining the status.  Otherwise, you may write a new article without copyright-infringing material. Click "Show" to read where and how. Your rewrite should be placed on this page, where it will be available for an administrator or clerk to review it at the end of the listing period. Follow this link to create the temporary subpage. Simply modifying copyrighted text is not sufficient to avoid copyright infringement—if the original copyright violation cannot be cleanly removed or the article reverted to a prior version, it is best to write the article from scratch. (See Wikipedia:Close paraphrasing.) For license compliance, any content used from the original article must be properly attributed; if you use content from the original, please leave a note at the top of your rewrite saying as much. You may duplicate non-infringing text that you had contributed yourself. It is always a good idea, if rewriting, to identify the point where the copyrighted content was imported to Wikipedia and to check to make sure that the contributor did not add content imported from other sources. When closing investigations, clerks and administrators may find other copyright problems than the one identified. If this material is in the proposed rewrite and cannot be easily removed, the rewrite may not be usable. State that you have created a rewrite on this article's discussion page.
About importing text to Wikipedia Posting copyrighted material without the express permission of the copyright holder is unlawful and against Wikipedia policy. If you have express permission, this must be verified either by explicit release at the source or by e-mail or letter to the Wikimedia Foundation. See Wikipedia:Declaration of consent for all enquiries. Policy requires that we block those who repeatedly post copyrighted material without express permission.	Instructions for filing If you have tagged the article for investigation, please complete the following steps: Add the following to the bottom of Wikipedia:Copyright_problems/2015 December 10 * {{subst:article-cv|:Real estate trading}} from http://online-aste.com/dettaglio/aste-online/real-estate-trading-aste/. ~~~~ Place this notice on the talk page of the contributor of the copyrighted material: {{subst:Nothanks-web|pg=Real estate trading|url=http://online-aste.com/dettaglio/aste-online/real-estate-trading-aste/}} ~~~~ To blank a section instead of an entire article, add the template to the beginning of the section and </div> at the end of the portion you intend to blank.

Online Real Estate Trading

Online trading can take two forms.

The first is simply the inclusion of a text box alongside a real-estate listing, stating the seller will consider a trade and possibility a description of what the seller is looking to trade for. Craigslist is a popular example of this. While not specifically geared towards permanent trades, it is often used for such purposes. There are also several web sites, mostly set up by realtors, that use this approach.

The second, more sophisticated, approach uses a model similar to a dating service. Such a web site matches sellers with other sellers based on what each seller has and what each is looking to trade for. There are a small number of web sites that make use of this approach. Onlinehousetrading.com, Craigslist.org,Domuswap and GoswapHow to sell your house

How it works

While there are multiple ways to accomplish a house trade, the simplest is the simultaneous-sale approach. In this scenario, you purchase a property from another seller, and he buys your property, all in the same transaction. As in a separate sale, you must have sufficient funds coming in from the sale to pay off your existing mortgage. You also need the necessary funds to purchase the new property, or the necessary down payment to procure a new mortgage.

Since both parties are buying new properties, both will need the ability to purchase the other property, either through sufficient equity in their existing house or additional available cash or borrowing potential. So it is difficult to accomplish a trade with another owner who has little or even negative equity.

In a simultaneous-sale approach, the two transactions must happen simultaneously. In other words, both must close or neither closes. By structuring the closing in such a way, proceeds from the sale of one property can be figured into the amount applied towards the purchase of the other. In this way, you are able to apply a portion of your existing equity towards the new property.

Swapping houses falls under section 1031 in the Tax code, also referred to as a 1031 exchange. The rule allows investors to sell off a property without paying the capital gains tax if they purchase another property, or properties, within 180 days of the original sale. However, if there is a mortgage on the property it is called a "mortgage boot," and taxes have to be paid to alleviate the debt. Also, any remaining amount of capital that is not subsequently invested in a like asset will be taxed as capital gains.

Can it work for me

A simple test to determine if you are a candidate for a house swap is the following: "If you sold your property today, would you be able to go out and purchase that other property tomorrow? If the answer is no, you either need to look at a less expensive property to swap with, or you're not a candidate" .

Since this type of house swapping is in actuality a simultaneous buy and sell, you will need to walk away from the sale part with enough funds to complete the buy portion. The stumbling block here is often the necessary down payment (20% is standard). You therefore need to have at least 20% equity, minus closing costs, to purchase the other property.

References