House swapping

From Wikipedia, the free encyclopedia

House swapping is the practice that refers to the swapping of homes on a temporary or more permanent basis. Although its origins stem from low-cost vacation accommodation and are believed to date back to 1953, there has been an increase in house swapping due to the slow-down in the United States real estate market. Less frequently, it may be used as a method of avoiding violence in war-torn areas.^[1]

1 Tourism
2 Real Estate
3 See also
4 References

[edit] Tourism

House swapping is believed to have developed in the 1950s, but rose to prominence in the 1970s as more people got involved^[2] and considered it to be a viable vacation option. ^[3] Some estimates indicate that 15-20% of travelers are participating in some form of house swapping.^[4] Summer is traditionally the peak season for house swapping, due to families traveling during summer vacations^[5] and house swapping allows families to try out a location for a short period of time^[6] while saving money over the traditional vacation costs and allowing them to take vacations that they may otherwise be unable to afford.^[7] It's estimated that families can save approximately $5,000 by swapping their homes instead of booking hotels and rental cars, although the perception and listing of the home may not always match reality,^[5] and some may be uncomfortable with others using their home.^[8] Not all travelers are interested in house swapping solely to save money, but they also see it as a means of meeting locals, seeing relatively un-touristed regions^[7] and experiencing local culture.^[9] The internet has made the process of finding a swap significantly easier with a number of websites devoted to house swapping.^[8]

[edit] Real Estate

Due to the current slump in the housing market in the United States, houses are staying on the market for longer than anticipated and house swapping has evolved to help buyers and sellers find a more permanent match.^[10] As with more traditional house swapping, the internet helps prospective buyers and sellers find a match in their desired location.^[6] This form of permanent house swapping is more popular in the Sun Belt and other regions where the market is slower.^[11]

This system is not well-established^[11] and has a number of kinks that must be dealt with, including how to account for differences in the values of houses.^[10] In addition, lenders often must approve the swap and there may be issues related to the house's condition, capital gains and foreclosures that both parties must be aware of.^[12]

Currently, none of the house swapping web sites release numbers of successful swaps, and there is speculation by some that they are merely lead generation sites that charge an up front fee to post property without creating successful transactions.^[13]