With a glut of houses on their hands, builders are resorting to creative tactics to entice prospective home buyers. One tactic is the offer of a new house with a trade-in for the owner's existing home.

In June, builders faced a median wait of 8.4 months to sell a completed home, the longest delay in selling time in the U.S. in the past 25 years, according to the U.S. Census Bureau.

Builders are feeling the squeeze of the housing market, and owners are trying to sell their houses continue to have a difficult time finding qualified buyers.

According to the National Association of Realtors, in August there were 3.9 million unsold single-family homes on the market in the U.S., the most since 1982.

Though trading in a car is a familiar practice, the thought of trading in a house is a new one for most people.

The process can be beneficial for both the homeowner and the home builder, but because a house is such a considerable investment, anyone wanting to take advantage of such a deal needs to be fully aware of the potential pitfalls.

For homeowners hoping to trade in their old house for a new one, we offer the following advice to avoid pitfalls.

Use reputable builder

Check out builders with the Better Business Bureau. BBB Reliability Reports are available free of charge at www.bbb.org.

Homeowners should confirm that the builder meets all necessary state licensing requirements.

They can do so with their state offices, such as licensing boards, and licensing and regulatory affairs commissions.

Evaluate market

It's important to evaluate current and projected market conditions for the areas surrounding both the existing and the new house to determine whether they're getting a good deal now and one that will remain a good deal for years to come.

This means researching home prices, taxation rates, schools, transportation issues, and building and community growth plans.

There are many resources that can help homeowners in this process, including city and county Web sites, local real estate sites, local newspaper archives and courthouse records.

Know financing deal

Homeowners need to consider the full cost of their new house -- including added fees and interest -- to avoid being taken in by what appears to be a low price.

Although a builder can't require a buyer to use a specific agent or lender to buy a house, he can require that the buyer use a specific agent or lender in order to receive the incentives associated with the trade-in.

Using the builder's preferred lender means the buyer might not be able to negotiate as good a deal or financing rate had they gone through someone else.

Worth it to wait?

Like trading in a car, trading in a house can be a quick way to sell, but the homeowner will most likely have to settle for less than the original or desired asking price, and this could literally mean tens of thousands of dollars less depending on market conditions.

If the owner has the luxury of waiting, it could be more profitable to wait for an upturn in the market.

Contract concerns

A lot of money is on the line when it comes to buying and selling a house. It's best to get a second or even a third pair of eyes on the contract before signing.

A real estate attorney or housing counselor can help.

The U.S. Department of Housing and Urban Development's Web site provides a list of approved housing counselors at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

For more advice on buying a home, go to www.bbb.org and look for the BBB Insider's Guide to Buying a Home -- also available at your bookstore.

Kelvin collins is the President/CEO of the Better Business Bureau of Central Georgia & the CSRA Inc. This tips column is provided through the local BBB and the Council of Better Business Bureaus.