Real estate trading (also referred to as permanent Real
estate swapping), is a type of "I buy yours you buy mine"
arrangement. This is distinct from vacation home swapping.
The deteriorating real estate market (circa 2006+) has led
many to realize that trading may be an extremely viable approach
to selling one's real estate. This approach only works if
the seller is also looking to buy another property, such as
a move or relocation. However, it is possible to move up or
down in price, size, etc, or even trade to another city or
state entirely.
While related, real estate trading is different than 1031
Exchanges. 1031 exchanges are a way to defer capital gains
tax on investment properties. 1031 exchanges do need to involve
an actual trade of real estate between two parties.