The housing market is tough — prices are high and inventory is low. If you're thinking about buying real estate with a friend, sibling, or business partner, you're not alone.
But, like most things involving money, you should be careful about who you tie yourself to and how you go about it. This advice from Realtor.com will make sure you don't get stuck in a situation you'll regret.
1.Co-buying isn't all that different from buying a home with a spouse, but it takes some extra prep work.
2.For starters, you should agree on why you want to buy. An investment? A home to live in together? A rental?
3.Then, discuss what sort of home you envision buying.
4.Share your credit scores and see if they align.
5.And disclose any debt you have.
6.Discuss how things will operate after you close on the home — from mowing the lawn to paying for repairs.
7.See how your prospective co-buyer responds to and answers these questions — it can be telling.
8.A common red flag is a co-buyer who doesn't seem to be in it for the long haul.
9.So is a co-buyer who doesn't hold up their share of the bargain from the start.
10.Make sure you put together a co-ownership agreement.
11.Which includes a plan for what would happen if one of you died.
12.Talk through all the ways the partnership could go wrong and how you would respond — from one of you moving across the country to a breakup.
13.Including, what Trapasso calls the "worst-case end scene."
14.To really protect your investment, you might want to involve a lawyer.
15.And don't forget to put aside some cash for things many first-time homebuyers forget about — from closing costs to furniture.
Have you tried co-buying? Have any tips for people considering it? If so, share your experience!