How much does a 1031 exchange cost?

Qualified intermediaries generally charge a fee that can be anywhere from $450 to $1,500 for a 1031 exchange. The median price is $750.

Are there any risks with a 1031 exchange?

There are some risks. For example, you may run out of time to find a replacement property (45 days) or close on a replacement property (180 days). There's also the possibility that the seller will back out of the sale, which could ruin your exchange.

How long does a 1031 exchange take?

A 1031 exchange cannot take any longer than 180 days from the date you sell your old property to the date that you close on the replacement property. However, the process could be much faster if you’re able to identify and close on a new property quickly.

Can you use a 1031 exchange to purchase a primary residence?

No — the purpose of a 1031 exchange is to exchange properties that are used for business or investment purposes. Primary residences are not included.

Can you have a mortgage in a 1031 exchange?

Yes. The profits from the sale of the first property can be used to pay off the remaining principal on the mortgage, and a new mortgage can be secured for the replacement property.

Steve Nicastro

Managing Editor

Steve Nicastro is a Managing Editor at Clever Real Estate, the nation's leading real estate education platform for home buyers, sellers, and investors. Prior to joining Clever, Steve helped buyers and sellers navigate a challenging real estate market in Charleston, S.C., closing $6 million in transaction volume for 2020 and 2021.

Over his career, Steve has bought and sold over 30 homes with a total value exceeding $8 million. This includes 20 homes as a realtor, 7 as an investor, and 3 as a primary homeowner and for sale by owner (FSBO) seller. Steve successfully used a local flat fee MLS service to get the FSBO properties marketed online, saving on commission costs.

Steve also worked as a personal finance writer for NerdWallet for over 6 years. His work has been published at USA Today, The Associated Press, U.S. News, and the New York Times, among other online publications.

Expertise: Real estate commission, selling a house without a realtor, buying a home, real estate investing.

Education: Quinnipiac University

Credentials: Full-time, licensed real estate agent in the Charleston, S.C. market from 2019-22. Active real estate investor in North and South Carolina.

External interviews and quotes:

Yahoo Finance: Discussing the NAR settlement
US News: What the $2 Billion NAR Lawsuit Means for Homebuyers and Sellers
Consumer Affairs: Zillow Launches 1% Down Mortgage
The Mortgage Reports: Is an Assumable Home Loan Right for You? Q&A

Find more from Steve:

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