Can You Trade Your House for Another?

Can you trade houses with someone? If you have ever owned a car, you are probably familiar with how car trade-ins work — or at least are familiar with the concept. You simply show up on the car lot, test drive a few new cars, find one you like, and sign the paperwork — and then you’re on your way with your new car, bidding your old car farewell in the rear view mirror. Wouldn’t it be nice if it was this simple when it comes time to buy a new house?

Trading your house for another

The idea of changing homes may seem scary and overwhelming. And since most homeowners are not in a financial position to pay two mortgages at once, buying a new home often means selling your existing home first. Unfortunately, the traditional way of moving from one home to the next often comes with the hassles of timing two transactions perfectly to avoid carrying two mortgages or moving twice. This also means there’s often a scramble to find the perfect home for you and your family after yours has sold. It all sounds pretty stressful, doesn’t it?

But what if there was a different way?

How trading your home works

Even though trading homes sounds like swapping out cars at a dealership, the word “trade” can be misleading as many people mistakenly believe that trading in your home simply means you exchange keys with another homeowner.

In reality, trading your home doesn’t truly involve a house swap and refers to selling and buying a home at the same time. You will still need to work with an agent to sell your current home and involve a lender to obtain a home loan for your new residence. You’ll pre-qualify for a mortgage, put down a down payment, and undergo a proper closing — in which you will sell your existing home and buy a new one as two distinct transactions. Your current mortgage will be paid off at that time, and then your new mortgage will begin for your new home.

Trading homes of unequal values

Many, if not most, homeowners looking to “trade” their house are either in the market to move up for more space, or to upgrade homes or move down to cut expenses and downsize. Maybe you have outgrown your starter home now that your family has expanded. Or perhaps you are a new empty-nester and don’t need all those extra bedrooms with kids out of the house.

Either way, there is likely another homeowner out there looking for what you have — and also has what you are looking for. Homeowner trades of homes of unequal values are really just selling two separate homes to each other, with both sides seeing benefits from the sale.

Pros of buying and selling your house at the same time

One of the easiest ways to move from one home to the next is by using our Buy Before You Sell program. This program is designed to eliminate the home resale contingency and the burdens of carrying two mortgages or multiple moves, while getting you more for your existing residence.

Here are a few more reasons why it’s a great option to explore when it comes to buying and selling at the same time:

Buy then Sell: Most buyers looking to move into their next home need to sell their current one first. Buy Before You Sell increases your purchasing power by letting us buy your new home first with all-cash, so you don’t have to worry about getting the equity out of your current home.

Stay Competitive: Until now, only people with large amounts of cash were able to make cash offers. With our Buy Before You Sell program, we can turn customers like you into cash buyers! This is a great solution, especially in California markets with low inventory where competition is high.

Eliminate Contingencies: Using our cash allows you to skip mortgage contingencies, which typically extend the process, so you can close faster and with fewer uncertainties. You’ll also avoid the stress of timing two transactions perfectly or having to make multiple moves.

Increase Odds of Offer Acceptance: Sellers love cash offers and will take them over traditional mortgage-backed offers 9 times out of 10. Reali gives you the edge to increase your chances of winning a home by 3x. You can even do a 10-day close with Reali’s Cash Offer.

Command Better Terms: You will be able to negotiate with a strong offer so you can buy on your terms and timeline. All cash offer on house often closes for less than the asking price.

Fewer Days on Market: We’ll also sell your home faster — Reali sells on average two weeks faster compared to traditional agents — and for more.

How Reali Buy Before You Sell Works

1. Get pre-approved. Quickly and easily find out how much you qualify for by getting pre-approved through Reali Loans.
2. Find your new home. Once you find the home that’s right for you, we will make a competitive all-cash offer on your behalf — making your offer stand out and increasing the likelihood that your offer will be accepted.
3. We’ll sell your old home. We’ll help get your home looking its best and sell it for top dollar.
4. Buy your new home back from us. Lastly, once your old home sells, you use the proceeds to buy your new house back from us at the original purchase price, regardless of market conditions or changes.

The Bottom Line

Reali’s Buy Before You Sell program is an excellent option for people who want to buy first and sell later — but with all the benefits and without the risks.

If you’re buying and selling at the same time, why do it the hard way? Buy Before You Sell allows you to sidestep the competition and use our capital to make a cash offer on a house faster and easier than ever before. Then, we’ll help you sell your old home for top dollar. To get started, find a local real estate agent near you.