Trade equity refers to the value of a property that a seller is willing to accept in exchange for their property, often in the form of another property. For example, if a seller owns a property that is worth $500,000 and they are looking to buy a new property that is also worth $500,000, they can use the equity in their current property as a trade-in towards the purchase of the new property, effectively using the equity in their current property as a down payment on the new property. This type of transaction is also known as a "property swap" or "property trade."
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What does trade equity mean?
Related terms
Depreciation
Cash-On-Cash Return (C on C)
Brokerage
Right of First offer
Building and Loan Association
Consideration
Options (In a Lease)
Vacancy and Credit Losses
Cashier's Check
Judgment
Acknowledgment
Teaser Rate
Split-Level Style
Density Test
Cottage
No-Competition Lots
Buyer's Market
Open Space
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