If you’re considering buying a home with a family member, things can start to feel overwhelming fairly quickly. As a multi-generational family real estate team, we know exactly how you feel. Making big, life-changing decisions with a loved one can be an amazing and joyful experience, but it can also be stressful at the same time.
From both a financial and lifestyle perspective, buying a home with a family member, whether they’re a parent, sibling, or in-law certainly has its advantages. However, it also brings new variables to the table during the buying process.
In this blog post, we will take a look at the process of buying a home with a family member, and share some tips for navigating the emotional factors and legal logistics. With these insights in your back pocket, you will be on your way to becoming a successful homebuyer.
Looking to stay up-to-date with the market? Sign up for our newsletter to get direct access to our experts’ industry insights.
Open & Honest Communication
If you’re serious about buying a home with another person, you’ll both need to be transparent about your wants and expectations. At the end of the day, sharing a home with someone should bring you closer together. Without open communication, things could get sour fairly quickly.
Before you even think about heading to the market, sit down for an in-depth conversation to make sure everyone’s on the same page. Talk about your personal reasons for buying, what you’re looking for in a home and neighbourhood, where you’re willing to compromise, and where you’re not.
While not always the easiest step, beginning your buying journey with an open dialogue can reduce the chance of things getting messy down the line.
Want to know what it’s like to work with Durham Region & the Kawartha Lakes’ most experienced team? Check out these pages from our site!
Assess Your Finances
One of the huge advantages of buying property with another person is that you can pool your resources together to maximize your purchase. However, unlike a spouse or partner, chances are you and your co-buyer won’t share the same bank account. Money can be a sensitive topic so ensuring everyone’s expectations are clear is an important part of this stage.
When it comes to working out the financial details of your home purchase, there are a number of major decisions that the two of you will need to make together. For instance, will you and the family member both buy equal shares in the home i.e. a 50/50 split? Or will one of you own more than the other?
You’ll also need to decide how you wish to finance the home. In today’s market, joint mortgages are a popular option for these types of purchases. That said, things can get a little more complicated if one of you doesn’t have the same degree of financial health as the other.
Staying Protected
Depending on your comfort level, you may also choose to have a formal agreement in place that establishes rights and obligations in the event of a conflict. Also known as a cohabitation agreement (or “CoHab” for short), these are legally binding documents that ensure both parties are protected if someone wants to move out or sell their share of the property. If you decide to go in this direction, your real estate lawyer can help you with signing and drafting the document.
Durham Region and the Kawartha Lakes are home to a number of amazing communities that make a great place to live for any kind of buyer. Explore some of our local community guides at the links below.
Work With a Compassionate & Experienced Real Estate Agent
Whether you go in alone or with a family member, buying a home is one of the most important decisions that you’ll make in your lifetime. If you want to find your dream home while sticking to your budget, the best place to start is with an experienced real estate agent.
Deeply knowledgeable about all kinds of properties, communities, and market trends, working with an agent gives you (and whoever you may be buying with) a major leg up. If you are entering the market with a family member, you should choose an agent who has specific experience working with joint purchasers.
As a neutral third party, they’ll help you navigate every last detail of the process, ensuring everyone feels comfortable, educated, and confident from start to finish.
Searching for a personalized and supportive home buying experience? Reach out to our team. Call 905-985-7300 or send an email to hello@liveplayinvest.com.
Stay Connected
With local real estate when you sign up for our newsletter. Join our mailing list here to get updates on the latest listings and expert insights.
