monthly rent goes toward the purchase price. After three years, you have paid $15,600 toward the purchase price. ($350 per month plus the $3,000 consideration.)

If house prices fall as you suspect they might, you walk away. Your total loss is the $3,000 fee you paid up front. If on the other hand, the value of the property goes up, you have locked in a profit and it only cost you $3,000 out of pocket.

Here's another idea, sell the option before it expires and pocket the gains. If the house appreciates by, let's say 10% over the three year period, you should have no problem selling the home for $220,000 earning you a $35,600 profit before expenses.($15,600 paid plus $20,000 appreciation) Not too bad a return on a $3,000 investment.

You could conceivably continue this process even into retirement and as long as the

As I write this, we are starting to see signs of softening in the real estate market. Particularly in some of the hotter real estate markets around the country. The problem with timing the real estate market is the same as trying to time the stock market. By the time it is clear that the trend has changed, it is too late.

Now is a good time to take a look at your current real estate situation and prepare to make some adjustments if necessary.

The first thing you must do is determine your true reason for owning your house. Do you intend to pay it off and live out the rest of your life in your current home, or are you looking to sell your house at retirement and use the proceeds as part of your retirement income?

If you intend to pay off the mortgage and continue living in your home, then you do not have to worry as much about house price fluctuation. After all, your house is your home and you intend to continue living there for the foreseeable future. House prices declining by 20-30% over the next few years isn't really a concern.

If you are looking at your current home as a part of your investment portfolio, then you have to be concerned about any softening in the market. If you are within five years of retirement you should be very concerned. Your house's value has probably peaked and maybe starting to fall depending on what part of the country you currently live.

To maximize your return, now may be the time to sell. If you have owned and lived in your present home for at least two of the last five years, you may qualify for a one-time $250,000 exemption. The exemption increases to $500,000 for couples. If you have that kind of equity in your home, that would really help the old retirement plan by providing another source of retirement income.

So, what do you do after you have sold your home. The most common excuse I hear is, "You have to live somewhere and it's going to cost money to buy another home." All true, however, who says you must buy another home, especially in the current market environment where prices could drop?

You don't. There is a way in which you rent your next home, take none of the risks associated with ownership and still benefit if house goes up in value. It is known as the lease-purchase. Let's say you have sold your home and you find a home offered for sale by a person who has been transferred out of state, or maybe they have just been downsized out of a job. This person is desperate for a quick sale. Let's say that the house is valued at $200,000.

If you were to purchase this home, you would probably have to come up with 20% down plus some closing costs or somewhere in the $40,000 to $45,000 range. The monthly payment on the balance, $200,000, would be in the area of $1,400 to $1,600. Now, you can certainly afford this because of your recent sale, but why expose that much money to the risk of the market?

On the other hand, if you like this home and think that it may continue to appreciate, why not consider a lease- purchase? You solve the owner's problem, at least partially, and you significantly reduce your risk in the deal.

Let's say you offer the seller a full price lease purchase. You give the owner $3,000 as an option consideration, and then pay somewhere around $1,400 per month in rent with the understanding that 25% of your monthly rent goes toward the purchase price. After three years, you have paid $15,600 toward the purchase price. ($350 per month plus the $3,000 consideration.)

If house prices fall as you suspect they might, you walk away. Your total loss is the $3,000 fee you paid up front. If on the other hand, the value of the property goes up, you have locked in a profit and it only cost you $3,000 out of pocket.

Here's another idea, sell the option before it expires and pocket the gains. If the house appreciates by, let's say 10% over the three year period, you should have no problem selling the home for $220,000 earning you a $35,600 profit before expenses.($15,600 paid plus $20,000 appreciation) Not too bad a return on a $3,000 investment.

You could conceivably continue this process even into retirement and as long as the

uch about house price fluctuation. After all, your house is your home and you intend to continue living there for the foreseeable future. House prices declining by 20-30% over the next few years isn't really a concern.

If you are looking at your current home as a part of your investment portfolio, then you have to be concerned about any softening in the market. If you are within five years of retirement you should be very concerned. Your house's value has probably peaked and maybe starting to fall depending on what part of the country you currently live.

To maximize your return, now may be the time to sell. If you have owned and lived in your present home for at least two of the last five years, you may qualify for a one-time $250,000 exemption. The exemption increases to $500,000 for couples. If you have that kind of equity in your home, that would really help the old retirement plan by providing another source of retirement income.

So, what do you do after you have sold your home. The most common excuse I hear is, "You have to live somewhere and it's going to cost money to buy another home." All true, however, who says you must buy another home, especially in the current market environment where prices could drop?

You don't. There is a way in which you rent your next home, take none of the risks associated with ownership and still benefit if house goes up in value. It is known as the lease-purchase. Let's say you have sold your home and you find a home offered for sale by a person who has been transferred out of state, or maybe they have just been downsized out of a job. This person is desperate for a quick sale. Let's say that the house is valued at $200,000.

If you were to purchase this home, you would probably have to come up with 20% down plus some closing costs or somewhere in the $40,000 to $45,000 range. The monthly payment on the balance, $200,000, would be in the area of $1,400 to $1,600. Now, you can certainly afford this because of your recent sale, but why expose that much money to the risk of the market?

On the other hand, if you like this home and think that it may continue to appreciate, why not consider a lease- purchase? You solve the owner's problem, at least partially, and you significantly reduce your risk in the deal.

Let's say you offer the seller a full price lease purchase. You give the owner $3,000 as an option consideration, and then pay somewhere around $1,400 per month in rent with the understanding that 25% of your monthly rent goes toward the purchase price. After three years, you have paid $15,600 toward the purchase price. ($350 per month plus the $3,000 consideration.)

If house prices fall as you suspect they might, you walk away. Your total loss is the $3,000 fee you paid up front. If on the other hand, the value of the property goes up, you have locked in a profit and it only cost you $3,000 out of pocket.

Here's another idea, sell the option before it expires and pocket the gains. If the house appreciates by, let's say 10% over the three year period, you should have no problem selling the home for $220,000 earning you a $35,600 profit before expenses.($15,600 paid plus $20,000 appreciation) Not too bad a return on a $3,000 investment.

You could conceivably continue this process even into retirement and as long as the

uity in your home, that would really help the old retirement plan by providing another source of retirement income.

So, what do you do after you have sold your home. The most common excuse I hear is, "You have to live somewhere and it's going to cost money to buy another home." All true, however, who says you must buy another home, especially in the current market environment where prices could drop?

You don't. There is a way in which you rent your next home, take none of the risks associated with ownership and still benefit if house goes up in value. It is known as the lease-purchase. Let's say you have sold your home and you find a home offered for sale by a person who has been transferred out of state, or maybe they have just been downsized out of a job. This person is desperate for a quick sale. Let's say that the house is valued at $200,000.

If you were to purchase this home, you would probably have to come up with 20% down plus some closing costs or somewhere in the $40,000 to $45,000 range. The monthly payment on the balance, $200,000, would be in the area of $1,400 to $1,600. Now, you can certainly afford this because of your recent sale, but why expose that much money to the risk of the market?

On the other hand, if you like this home and think that it may continue to appreciate, why not consider a lease- purchase? You solve the owner's problem, at least partially, and you significantly reduce your risk in the deal.

Let's say you offer the seller a full price lease purchase. You give the owner $3,000 as an option consideration, and then pay somewhere around $1,400 per month in rent with the understanding that 25% of your monthly rent goes toward the purchase price. After three years, you have paid $15,600 toward the purchase price. ($350 per month plus the $3,000 consideration.)

If house prices fall as you suspect they might, you walk away. Your total loss is the $3,000 fee you paid up front. If on the other hand, the value of the property goes up, you have locked in a profit and it only cost you $3,000 out of pocket.

Here's another idea, sell the option before it expires and pocket the gains. If the house appreciates by, let's say 10% over the three year period, you should have no problem selling the home for $220,000 earning you a $35,600 profit before expenses.($15,600 paid plus $20,000 appreciation) Not too bad a return on a $3,000 investment.

You could conceivably continue this process even into retirement and as long as the

ouse is valued at $200,000.

If you were to purchase this home, you would probably have to come up with 20% down plus some closing costs or somewhere in the $40,000 to $45,000 range. The monthly payment on the balance, $200,000, would be in the area of $1,400 to $1,600. Now, you can certainly afford this because of your recent sale, but why expose that much money to the risk of the market?

On the other hand, if you like this home and think that it may continue to appreciate, why not consider a lease- purchase? You solve the owner's problem, at least partially, and you significantly reduce your risk in the deal.

Let's say you offer the seller a full price lease purchase. You give the owner $3,000 as an option consideration, and then pay somewhere around $1,400 per month in rent with the understanding that 25% of your monthly rent goes toward the purchase price. After three years, you have paid $15,600 toward the purchase price. ($350 per month plus the $3,000 consideration.)

If house prices fall as you suspect they might, you walk away. Your total loss is the $3,000 fee you paid up front. If on the other hand, the value of the property goes up, you have locked in a profit and it only cost you $3,000 out of pocket.

Here's another idea, sell the option before it expires and pocket the gains. If the house appreciates by, let's say 10% over the three year period, you should have no problem selling the home for $220,000 earning you a $35,600 profit before expenses.($15,600 paid plus $20,000 appreciation) Not too bad a return on a $3,000 investment.

You could conceivably continue this process even into retirement and as long as the

monthly rent goes toward the purchase price. After three years, you have paid $15,600 toward the purchase price. ($350 per month plus the $3,000 consideration.)

If house prices fall as you suspect they might, you walk away. Your total loss is the $3,000 fee you paid up front. If on the other hand, the value of the property goes up, you have locked in a profit and it only cost you $3,000 out of pocket.

Here's another idea, sell the option before it expires and pocket the gains. If the house appreciates by, let's say 10% over the three year period, you should have no problem selling the home for $220,000 earning you a $35,600 profit before expenses.($15,600 paid plus $20,000 appreciation) Not too bad a return on a $3,000 investment.

You could conceivably continue this process even into retirement and as long as the real estate market in your area continues to chug along, you could be adding additional funds to your retirement account without risking any of your principal.