Originally posted by Sequoia on http://tinyurl.com/24blygt
4 Ways to Succesfully Barter for Real Estate
If you are short of cash, it is possible to barter for real estate. You may not qualify for a mortgage that covers the purchase price, or you may not have enough cash for the down payment. In these scenarios, you may be able to barter for the real estate you want to purchase.
Step 1: Determine What Part of Deal to Barter
There are many different parts of the transaction that you will be able to barter including the down payment or a discount on price, commissions or closing costs. You can barter for part or all of the real estate purchase.
Step2: Determine What to Offer
For bartering to be successful, you must offer something of value that the other party will accept in exchange. The most common items used in barter are cars, boats, services, goods or other properties.
Step 3: Determine Value
Both parties must agree to the value of the item that is being used in the barter. Value can be determined by appraisals, sticker cost or comparables. The value will be used to determine the monetary value offset in the real estate transaction.
Step 4: Exchange
The attorney or title agent handling the closing will need to account for the value of the barter in the settlement statement. He or she will need to verify that the items to be bartered are exchanged.