The large downturn in real estate is leaving a record number of homes on the market ...
At last count, there were 4 million pre-owned houses for sale. That's up 14% from the start of last year. The large glut of unsold homes is also fueling some interesting new trends online ... Sellers are turning to web in search of outside the box ways to unload their homes, while perspective buyers hope to Goggle their way to a sweet deal.
WHAT TRENDS ARE YOU SEEING ONLINE AS OPPOSED TO A FEW YEARS AGO WHEN THE MARKET WAS THRIVING?
Big spike in searches for foreclosures.
It's no secret it's a buyers market ...Home prices continue to drop and foreclosures are hitting record highs in some states. As a result, home foreclosure websites are experiencing record traffic. On
realestate.aol.com you can now simply check a box and have "foreclosures" included as part of your overall home search. So, you end up with results for existing homes, new homes and foreclosures
EVEN PEOPLE WHO AREN'T PLANNING TO SELL OR BUY ARE GOING BACK TO THESE SITES AGAIN & AGAIN – WHY? WHAT ARE THEY LOOKING FOR?
The latest value of their home. There's even a term for it "Zillowing." Think of it like "Googling," but for prices.
www.zillow.com
Some caught in the mortgage crunch are turning
to peer-to-peer lending sites like Prosper.com.
Some people are avoiding banks and opting for peer-to-peer lending on sites like
www.prosper.com, so they can get hands on cash quickly and take advantage of good buys.
Another wild new trend we're seeing is house swapping ... Sellers actually using the Internet to connect with other sellers who agree to "swap" – or buy one another's property. The idea of trading houses temporarily for vacations has long existed, but permanent house swapping isn't something most of us are familiar with.
Here's how it works ... While it is referred to as "house swapping" or "house trading," it really is two traditional real estate sales conducted at the same time ... you have simultaneous closings.
The swapping sites work by playing matchmaker. Think of it like online dating, but instead of posting pictures and a profile for yourself, you're listing your house; and at the same time you're checking out someone else's house in an area where you'd like to move or relocate to.
House swapping is one of the latest
trends for moving a house in a tough market.
The main advantage is the ability to move a house in a tough market. In states like Ohio, Michigan, Florida and Nevada ... places where there's a real glut of homes for sale ... this may be a logical next step if you've already pulled out all the stops and have been unable to unload your house.
Also, for someone who is afraid to buy a new house before they sell their current house ... This solves that problem, as everything is done in one step. Another bonus, both parties usually save on brokers' commissions (though you'll still be on the hook for closing costs).
WHAT ARE THE ODDS OF FINDING A MATCH? AND HOW IS THE MATCH-MAKING FACILITATED?
About half a dozen of these sites have launched in the past year ... On of the more popular ones,
Onlinehousetrading.com – they say they're getting about 1 million hits a month – there, the matchmaking is fully automated. They use search technology to comb through their listings database for someone looking to buy a house like yours, and at the same time, selling a home that meets YOUR needs. Once a match has been made, OnlineHouseTrading.com will make anonymous contact information available to both parties.
Houses swapping ads/offers are
also showing up on Craigslist, but things are less automated there.
FINDING THE RIGHT MATCH IS ONE THING, BUT FINALIZING THE TRANSACTION SOUNDS LIKE IT COULD BE COMPLICATED. DOES THE SITE HELP YOU WITH THOSE KINDS OF DETAILS?
When you think of an online dating site like Match.com – they might help match you with the right guy or girl, but you don't expect them to be there when you're exchanging vows.
The swapping sites are there to help sellers and buyers network and connect. It is up to both parties to come to a contractual agreement to purchase each other's properties if they so choose.
They usually recommend both clients (the swappers) agree to use one title company ... That can simplify and streamline things by having all the paperwork in one place. And the deal's not done "until everyone signs off."
WHAT HAPPENS IF THERE'S A BIG DIFFERENCE IN THE HOUSE PRICES – IF IT'S NOT AN EVEN SWAP?
You don't have to trade for equivalent value. While it's called a swap, it's really two separate transactions, where both trading partners take out mortgages based on the price they agree to pay. So if you're an empty-nester who wants to downsize and pocket some of the equity you've built in your home, you might choose to swap with a younger couple with a growing family.
DO THE SITES CHARGE FOR THE SWAP?
Most, like OnlineHouseTrading.com charges a flat fee of $20.00. So, pretty reasonable. If you're using Craigslist it's free, but again, the functionality/matching capabilities aren't very robust.
ANY DOWNSIDE TO HOUSE SWAPPING .... THINGS TO LOOK OUT FOR?
Make sure there is a solid commitment and cooperation between the swappers ... or things won't get off the ground.
You might find the selection of houses to be limited, depending on what market you are hoping to swap to. There are a lot more houses available for swapping in Florida or Nevada than you will in hotter markets like NYC.
More on this topic ...
Celebrity Real Estate Markdowns
Real Estate/ House Swapping Sites:
www.ReginaLewis.com
www.realestate.aol.com
www.prosper.com
www.zillow.com
www.onlinehousetrading.com 
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