House swapping is indeed a viable option in this mar ket. In fact, for a pair of frustrated home sellers, it can solve two problems at once: the sale and the replacement purchase. Swapping is nothing new. But until the current real estate bust, most "swaps" were just mutual lease arrangements, where owners traded spaces for vacation purposes. Now they're playing for keeps. There is now several matchmaking Web sites that facilitate permanent swaps.

Among them: OnlineHouseTrading.com, DomuSwap, Pad4Pad, Daytonah- ometrader, TrySwappingIt and Goswap. Typically, these sites require a small one-time fee. Once you register, you will receive lists of potential matches in your desired geographic area based on your property profile. Craigslist community Web sites also have growing housing-swap sections, where you'll need to do your own matching.

There's no law saying that homes have to be of similar price in these arrangements. Some parties will gladly make up the difference between both homes' values if the deal is right. However, a home swap should always be treated like any other real estate transaction.Despite the distance involved, you will certainly want to get a first-hand tour of the property, no matter how glorious the place looks in digital photos.

You will still want to have appraisals and inspections done for the new property. And both swappers will need to get new mortgages. (By the way, I would advise against getting involved in a swap with sellers who owe more than their properties are worth.)Increasingly, real estate agents are steering their clients toward swapping as a last resort. You may want to enlist a Realtor or other knowledgeable professional on a fee basis to assist you with the details and nuances. Another big caveat: Realize that swappers tend to overprice their homes for optimal trading leverage.

Hence, there will likely still be some negotiation after two swappers are initially paired up.There are some potential economies both swappers can enjoy. You could, and perhaps should, use the same title companies to coordinate simultaneous closings. You may also get a substantial reduction in moving costs by each using the same moving service, which won't be forced to return to the original destination with an empty trailer.

This could be a big cost-saver these days as fuel prices continue to spiral out of sight.While you should be cautious in the swapping game, you should also try to keep an open mind if you can't find what you consider the perfect match. Be ready to consider several options.