| Home Exchanging is Perfect for : | |
| Homeowners | Ideal for anyone on the move. No matter what age, shape, size or type your home is, there is always someone who wants to upsize, downsize or just move. |
| Renovations | If you are looking for a more modern property and your present one could do with some TLC, list it here. Builders are always looking for their next project and it could save you time, money and get you a new home into the bargain. |
| Small Builders | Have you finished one project and looking for your next? Lots of people are looking to upgrade to a renovated property so list your projects on a property exchange site and reach a wider audience. |
| HM Forces | HM Forces are always on the move to other areas with a Base close by. That's why Home Exchanging makes perfect sense and is the ideal way to help you move and keep your family with you without repeated expense. |
| Holiday Homes | For those with a chalet, mobile home or holiday cottage who want to holiday in another part of the country, list it on a property exchange site and reach more people, possibly looking for the same. |
| Council Tenants | Most property exchange sites have nationwide coverage so are ideal whether you want to move to a different part of the country or just the other side of town. |
Welcome to SwapKeys.co.uk, the information site on the growing trend towards home and property exchanges as an alternative to the traditional sell and buy routine
Firstly, the issue of terminology needs to be addressed. Because words can mean different things to different people, and there is no established convention, there can be confusion as to what a site is offering. The words "exchange" and "swap" are used quite liberally but can actually mean different things. I would prefer to see a convention along the lines of the following:-
|
Exchange |
|
|
Swap |
|
|
Sitting |
|
Because some sites refer to "swap" in a context that I would call
"exchange", the first piece of advice for anyone is to be very clear
about what the site, and those registered, on it is offering, is it
permanent or temporary?
The next consideration is the market the site is aimed at. There are a
number of sites offering council house exchanges. Some of these are
moving into the increasingly popular private home exchange market, but
will by default have a limited supply of properties you are likely to be
interested in. It may well be worth considering these sites though, as
some also have a "buy now" type option, which may result in you
attracting a buyer who currently rents a council property and wishes to
get "on the property ladder".
Other sites are available which are targeted more at the private
individual and conversely will have a limited number (if any) council
properties listed. Don't be too put off if you see not a lot of
properties listed. It is better that than page after page of unsuitable
or already exchanged/sold properties. Also a lot of people have not yet
The third consideration is the cost structure for the
site.
In general you will have to pay to register you property on the site for
a period of time. This is straightforward and easy to compare between
sites. As always it is worth you doing your homework beforehand. You are
likely to get an estate agent (ideally 3) in to give you a valuation of
your properties current market value. You will need this when you come
to offer your home for exchange. Don't take the highest one, but try to
be realistic. Whilst you have the estate agents attention, use that time
to find out what his fees will be, and how long a property such as yours
is likely to take to sell. An estate agent will tell you what you want
to hear (or am I being cynical??) so in my view take the number of weeks
(they will not talk in terms of months) and DOUBLE IT. That is how long
you are likely to need to market your property, and you may find it
cheaper to sign up to that number of weeks rather than go with the first
number and have to renew it.
Some sites also charge a (generally small) fee to the person who may be
interested in your property, for them to receive the full details. These
are known as Full Particulars or Full Detail Requests etc. This serves
to spread the marketing cost and also ensure that you are only contacted
by serious home exchangers. It also deters unscrupulous estate agents
(as if there are any!!) from trawling through the site and bombarding
you with offers to sell your house for you.
As always there is the doctrine of
Caveat Emptor.... Buyer Beware!!
Property exchange is no different. You could be giving up your beautiful
home for one that is about to fall down or have a by-pass built through
it. Just because you have saved money on the estate agents by exchanging
rather than selling, don't try to save more by ignoring the need for
proper surveys or legal advice. The home is likely to be the most
expensive purchase you ever make, so is always worth careful
consideration. If the exchange offered is too good to be true... the
chances are it is.
Why use home exchange?
-
Save money! No estate agent commission
-
Dramatically cuts fees and VAT by reducing the number of middle men.
-
The higher the value of your home, the more you save.
-
No chain. The only other person you have to deal with is the other exchanger
-
What should be simple, 5 minute web site registration
-
Perfect for anyone on the move
-
With the right site, you can reach thousands of people every month all looking for an exchange
| Conventional sale | Person A | Person B | typical exchange listing | Person A | Person B |
| House price | 149950.00 | 174950.00 | 149950.00 | 174950.00 | |
| Fees (based on 1.25%) | 1874.38 | 2186.87 | 6 Months registration | 36.00 | 36.00 |
| VAT | 320.01 | 382.70 | 50 detail requests | 67.50 | 67.50 |
| Total cost | 2194.39 | 2569.57 | 103.50 | 103.50 | |
| Total saving by using home exchange | 2090.89 | 2446.07 |
In this example, the Solicitor for person A will arrange
the transfer of £25000 to person B based on the difference
between the two house values. Please note that there are no
savings on STAMP DUTY by exchanging homes.
What has your Estate Agent
asked you to do lately? Reduce your price? Pay the buyer's Stamp Duty?
Pay the buyers removal costs? Include the furniture in the sale? Did
they tell you what you wanted to hear or the true market valuation and
are they marketing your property in the best way. By offering your home
for exchange you are taking more control over your home move, whilst
also saving money.
DO's
and DON'Ts of Home Exchange:-
| DO include a picture. | A picture really does replace a thousand words. |
| DO be honest | Any exaggeration or "poetic license" will be found out during the viewing or legal process and will result in everything else being put in doubt. |
| DO provide as much detailed description as possible. | Potential exchangers need to know if your property meets their needs, and providing a full description increases your chances of interest, and reduces time wasting on both sides. |
| DON'T be over optimistic | You need to be realistic about what you can trade up to, and who may be interested in your property. You are unlikely to two bed terrace for a highland castle. (silly example, but you get the point) |
| DON'T over value your property. | Unless properties just like yours have sold recently in your area, obtain 3 estate agents valuations and take a realistic view of the true value of your property. |
| DON'T get carried away. | The exchange may look great, but check out all the detail, see for yourself (preferably twice), get proper surveys done and use a solicitor!! |
below are examples of houses we have found offered for exchange