House Swap Idea

[Lynn Funna]

Hello BP community! My family of 6 live and own in a ranch style 3br/2.5ba house with completed bonus room upstairs in a HOA neighboorhood. One of my neighbors met with me the other day, who is retired along with her husband and they plan to sell their paid off 5Br with completed basement house valued at $750K in the same neighborhood and buy a smaller unit near Warner Robins GA. Being the novice savvy investor I am, I want to make a deal to house swap, move into their bigger home for my growing family, and have them move in our home that is more favorable for senior living. I am also aware of assisted living facilitites and services offered in the Warner Robins community, as I assume this is their reason for place of choice. If they offered seller finance to us, those funds could then be used to pay for the lease at our home if we swap however they are retired, what about tenant screening amongst other things, not sure what type of deal structure is best for this scenario but if anyone can guide me with any feedback is greatly appreciated. TIA from Lawrenceville GA

[Matt Devincenzo]

You're really both selling your house to one another, so why would they buy your house? I know you say swap, but the swap is accomplished via two sales. Those sales may happen off market between you two, or may have creative terms, but really you're negotiating two separate sale both of which only happen if you both like the terms.

It sounds like they want to live somewhere else, not live in a smaller house where they are. Also what are the values...I'm guessing theirs is worth more than yours, so you need to make up the difference

Just ask them directly if they would sell to you off market, and how much they'd want. If they will then get your home ready to sell and list it.

[Lynn Funna]

Hey Matt thanks for reaching back. They are looking to downsize for sure, been thinking to offer lease option instead we both can try before we buy.