Is this program for intended for Residential or Investment properties?
The Kieran Group's Trade Program works for both types of properties.

Most residential transactions don't require use of a 1031 Tax-Deferred Exchange, so we facilitate these trades in an innovative, effective manner. All contracts and procedures will be familiar to people experienced in standard Real Estate sales and purchases.

Investment property exchanges, however, often demand use of the 1031 Tax-Deferred Exchange process. A Qualified Intermediary will be involved in these transactions, and the client's equity/debt position is of critical importance. Our role in these transactions is to help our clients find ready-and-willing exchange partners for their properties--a service so rare, we're among the very few who offer it.

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What if the properties aren't worth the same amount?
Then one party is Trading Up, and one party is Trading Down. If we're talking about residential trades, the difference in values can be made up by cash, mortgage proceeds, RV's, locker beef or any other compensation the parties agree to. Investment property trades are naturally more complicated.

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Does it matter if I have a mortgage?
With a residential trade, it does not matter if you have a mortgage. Most people have one or more, and (almost) none are assumable. Here's how The Kieran Group takes care of your needs in these transactions: 

Step 1: When the 'sale' portion of your Residential Trade closes escrow, it's similar to a regular, single-home Real Estate sale: the title company credits you with the purchase price for your property. If you own the property free and clear, you receive cash. If you have a mortgage, the title company pays off the mortgage and you get the remainder in cash.

Step 2: That cash (or any portion of it) then becomes the down payment for the mortgage you get to buy their property. Or, if you're able, you can pay all cash for their property.

Step 3: Both of these trade transactions (the sale and the purchase) close escrow on the same day. Thus, you literally trade houses with the other party after closing.

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What do you do when there appears to be a property match?
We contact both parties and let them know someone's interested. If both parties have agreed to the Trade Agreement, I send each of them the others' contact information and/or property address. That's part of the Trade Agreement--you authorize the sending and receipt of that information.

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How are purchase prices set?
Prices are set by whatever means the parties agree--by mutual appraisals, by public tax assessed values or by any other means of negotiation.
Note: The use of artificially low prices (designed to minimize Real Estate taxes due at closing) could be construed as fraudulent behavior. Prices must be justifiable as fair market value.

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What paperwork is involved?
Each party signs a contract to purchase the others' home. The purchase contract has all the usual protections afforded to buyers of Real Estate: contingencies on inspections, financing, appraisals, etc. However, one additional paragraph is included in this type of transaction: a notice that if one purchase contract is canceled for any reason, the other purchase contract is automatically canceled as well.

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Can my Realtor help me with the paperwork?
Yes, but Realtors have to earn a living. They will charge a fee for handling the paperwork of parties who are in mutual agreement to purchase each others' properties, but it will usually be less than a standard listing commission. Email us to learn about participating Realtors in your area.

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What if my property is already listed for sale?
Ask your Realtor how to proceed. Rest assured, though, that any Realtor can represent you in the purchase of a FSBO (for sale by owner) home--which is what the other parties' home is.

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What if the other parties' home is also listed for sale?
Call your Realtor and tell them you've found the home you want to buy...and that those homeowners want to buy yours. The two Realtors will work together to make sure the transaction works out well for everyone. You can also call us for a 2nd opinion on how to proceed.

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What other types of trades are there?
Equity Trades:  If each party owns their property free and clear, they can swap title to their properties. If one of those properties is worth more than the other, the owner of the lesser-valued property adds cash or mortgage proceeds to make up the difference.
Assumable Mortgages: Some mortgages are assumable by qualified parties. Though these mortgages have become rare in recent years, some homeowners do still have them in place.

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How does The Kieran Group facilitate Trades?
We actively pursue Trades for you, and we represent you in a transaction. For this service we charge 2.5% to you, the homeowner--and it's payable at closing, just like a Real Estate commission. If there's no closing, there's no fee. Ever. Click Here to read the simple Trade Program Agreement.

Can I do a Trade without paying a fee at all?
If you've got the time, sure!  There are lots of locations to advertise property trades. In fact, here's a brief how-to: Take some great pictures, write compelling ad copy, post your ad every week in multiple locations, take calls and return emails, show your home, visit the other peoples' homes, negotiate fair sale prices, fill out all the paperwork, conduct inspections and facilitate appraisals, set up escrow and close the deal. It's not rocket science--for most people, it's really the 'time' issue: you need a LOT of it!

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What if I don't want to sign the Trade Agreement?
Then we can't do much to help. We spend substantial time and expense on this program, and we have to earn a living, just like you do. We can't send property information to people who don't agree to the low fee of 2.5%, nor to those who won't authorize the release/receipt of information.

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Is it better to list my home for sale?
It depends on your timeframe. If you're facing foreclosure or going through a major life change, such as job relocation or divorce, you may not have the time to wait for a Trade to materialize.
But many people have the time. They're content knowing they could be moving to a great new home one day--without needing a sign in the yard or lockbox on the door. If you're in this group, Trades can be the perfect answer!
So the answer is this...we can advise you on every available avenue for selling your home. Maybe you're better off selling For Sale By Owner or going onto the MLS with Limited Representation. For Trade By Owner and Conventional Listing Services are just a couple of tools at your disposal. So don't be afraid to ask, because we're not afraid to answer.

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What will guarantee a sale--listing or trading?

Well, if we knew that ahead of time, wouldn't our jobs be easier? But because we don't have a crystal ball, we use every tool in our big rolling toolbox to find the buyer who'll close escrow on your home.
Either listing or trading can work to achieve your goals. Both are viable means to get you moved. So why rule out either? Any more than you'd you rule out flyers or online advertising? You wouldn't, of course. Truth of the matter is, you simply won't know what sells your home until it's sold. So don't rule anything out. We don't. That's what The Kieran Group is all about.

Is the Agreement the same as a Listing?
No. The Trade Agreement stipulates that if a closing occurs as a result of what The Kieran Group accomplishes, then (and only then) a commission would be due. Nothing more, nothing less. And is 2.5% a fair enough rate? 

Can the Agreement be canceled?
Absolutely. It can be canceled by either of us at any time. You might lose your motivation to trade, or you might list your home for sale with your neighborhood Realtor. Just let us know and we'll take you off the list.
We, too, can cancel the Agreement as we feel necessary. We reserve the right to refuse service to anyone.