A delayed exchange (also called a forward or Starker exchange) is the standard sequence: you close the sale of your old property, a qualified intermediary holds the proceeds, and you buy the replacement within the 45- and 180-day windows. It exists because a 1979 court case (Starker) established that the sale and purchase don't have to happen simultaneously — the IRS then wrote the deadline rules to contain how "delayed" it could be.
Why it's the default
- Cheapest and simplest — typically $750–$1,500 in intermediary fees, no special title-holding entities.
- Fits normal market behavior — most people need the sale proceeds before they can close a purchase.
- Battle-tested paperwork — every intermediary, title company, and lender knows the drill.
Its one weakness
The sequence forces you to sell before you've secured what you're buying, and the 45-day identification clock starts immediately. In a hot market where good replacements go fast, that pressure is real. The fixes, in rising order of cost: negotiate a longer closing or a leaseback on your sale to shop before day 0; get a replacement under contract before you close; or flip the order entirely with a reverse exchange.
Map your 45/180-day window →Enter a hypothetical closing date and see how much shopping time you would really have