Advantages of property swapping as opposed to selling

SWAPPERS SAVE BIG TIME by reducing transaction costs! 

  • This can be best proven by an example. Let's say, you buy a car through a dealer. The dealer realizes profit in a number of ways. Dealers buy vehicles at a trade-in value and sell them at an inflated retail price. This difference between trade-in and retail price is usually around 20% or about $2,000 for each $10,000 of the cost of a vehicle. The dealer then adds the "dealer fee," which ranges typically from $300 to $700 and makes additional profit on financing, but we will disregard this for sake of simplicity in our example.
  •  When you exchange or swap your car with another person's car, both parties benefit greatly by eliminating the third party or the middleman--the dealer in our example. Both private parties can determine the Private Party Value of their cars free through Kelley Blue Book ( or Edmunds (, then take the difference between the two values and settle in cash for that difference. The best part is that each swapper in the example above will reduce the cost of their new car ownership by at least $2,300. Just imagine the savings if you are swapping more expensive items!
  • Same scenario applies to swapping real estate where the middleman is a realtor. Realtors' fees in the US range from 4% to 10% of the property value. There is no middleman when you are exchanging properties through, so parties on both sides eliminate these transaction costs. As you can see, swappers' savings can be substantial.


Trading Newsletter

Get property trading news, success stories, promotions...
Email Format