Thinking of Buying a Home with Friends or Family? Keep These 3 Tips in Mind

As home prices in many areas have skyrocketed over the past few years, those looking to buy a home have increasingly turned to unconventional options to help finance their purchase. For some, this may mean seeking friends or family members to serve as investment partners. If you are considering this option, here are three important tips to keep in mind:

  • Stick to the agreed-upon budget. Before you even begin your home search, set a budget that everyone who will be contributing money can agree to. Be sure to account for not only the purchase price, but also expenses such as closing costs, property taxes, utility fees, repairs and maintenance, HOA fees, and potential unexpected costs. Then, consider how these costs will be divided among the parties and put your agreement in writing. Regardless of the cost breakdown you have agreed to, choosing a property that is comfortably within your budget can help avoid stress and future conflicts.
  • Determine how the property will be titled. In addition to determining how much money each party will contribute to the purchase, it’s important to consider how ownership will be divided. For instance, if three friends are buying a home together, they may agree that one person will own 50% of the property and the other two will own 25% each (these shares typically reflect each party’s investment).
  • Consult an attorney. While your realtor will be able to offer plenty of guidance on your home search, it may be best to consult an attorney if you will be buying a property with friends or family members. A lawyer can explain the potential legal implications and help you structure an agreement that will reduce the risk of future conflicts.

Source: nar.realtor

Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contacting Pat Licata.

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