A Good Exit Strategy

If you own a home right now and would like to sell it to buy another property, perhaps a good exit strategy would be to lease your house and give someone else a chance to own their own home. This method has become popular in a brisk real estate property market like Alberta where it is a good time to buy real estate but not everyone is in a financial position to do so.

Using this strategy you can sell your home at today's price and let the new owners lease for a specified amount of time. Their lease payments will make up the full or partial down payment and at the end of the agreed term they assume your mortgage and everybody wins.

Another scenario is to lease the property to the soon to be owners for the same specified term with the sale price being what the home is worth at the end of that term less 5 percent. This way you sell for close to market value and they still get to own their own home at less than full price. While this may not appeal to everyone it is certainly a viable option for those who don't have the money for a down payment. That lease to buy scenario will be different for every property depending on what each party wants and needs.

Keep in mind that whether you want to buy or sell a piece of real estate, no matter what the market is like, it is as individual as you are. There are no hard and fast rules on how to sell your home and every person you deal with can take a different route. As long as everyone walks away with what they believe is a good deal then you've done well.

Rhonda Hoffman

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