Creating a Real Estate Exit Plan Before Income Loss Becomes Unmanageable

What Is a Real Estate Exit Plan?

A real estate exit plan is a strategy you put in place before your income drops below a level where you can comfortably maintain your mortgage, taxes, and property upkeep. It's a personal roadmap-unique to your situation-that outlines:

• When it makes sense to sell

• How to do it in a way that protects your finances and dignity

• What steps you'll take if your situation worsens

Think of it like a safety net. You may never need to use it. But if you do, it will be there to prevent a fall from turning into a financial disaster.

Why Plan an Exit Early?

Because time is your greatest asset-and your most fragile one. When income drops suddenly due to job loss, illness, divorce, or another life change, most people focus on getting by day to day. They cut spending, dip into savings, delay repairs.

But without a plan, these short-term fixes can lead to long-term damage.

By the time the mortgage is overdue, the credit score has dropped, or foreclosure notices begin, you've already lost negotiating power-and possibly equity.

Planning early gives you:

• Time to sell on your terms

• Room to explore your options calmly

• The ability to avoid rushed, high-pressure decisions

Advantages of Creating an Exit Plan

1. Reduces Stress Knowing you have a plan in place-even if you never use it-can lower anxiety and help you make clearer financial decisions.

2. Preserves Equity By preparing to sell before missing payments or deferring maintenance, you protect the value of your home.

3. Improves Market Timing You can choose when to sell based on market conditions, not desperation.

4. Allows You to Plan the Next Step Whether it's downsizing, relocating, or switching to a more affordable lifestyle, a plan helps you make your next move smoothly.

Disadvantages to Consider

1. Emotional Difficulty Even thinking about selling your home can be painful. A home represents memories, stability, and pride. Planning an exit can feel like admitting defeat-but it's actually an act of strength.

2. Complexity Creating a plan involves paperwork, calculations, and tough conversations. It requires mental energy-something often in short supply during hard times.

3. No Immediate Relief An exit plan doesn't fix your financial hardship right away. It's preparation, not a solution on its own.

Is This Right for You?

This strategy is especially useful if you're a low- or moderate-income homeowner and you've already experienced-or expect-any of the following:

• A job loss or significant reduction in working hours

• A medical event that reduces your ability to earn

• Divorce, separation, or changes in family structure

• Debt or expenses increasing faster than income

• Approaching retirement with fixed income concerns

If you can feel the financial strain coming, but still have some control, you're in the best position to act.

Where to Start

While our organization does not offer one-on-one consultation, we provide free, practical resources that help homeowners evaluate their situations and take action-early and wisely.

You'll find materials on:

• How to assess if your current home is still affordable

• How to determine your property's current value

• How to estimate selling costs and net proceeds

• What to consider if you're thinking about downsizing

• Questions to ask when choosing when and how to sell

All of these are designed to support homeowners-especially those who may feel overwhelmed or under pressure.

Planning ahead isn't pessimism. It's protection.

You worked hard for your home. A real estate exit plan helps you protect what you've built-even if life throws a curveball.

📚 To learn more, visit our [Resource Center] and explore the guides designed to walk you through every stage of the decision-making process-clearly, calmly, and on your terms.

KING COUNTY REAL ESTATE HELP Helping you prepare-not panic.