Alternative Paths
Last updated: Jan 20259 min readCo-Buying a Home Explained
How to successfully purchase a home with partners or friends
Co-buying—purchasing a home with friends, family, or partners—is becoming increasingly popular as home prices rise. Here's what you need to know to do it right.
1Why Consider Co-Buying?
Benefits of purchasing together:
- Increased buying power: Combined incomes qualify for more
- Shared costs: Split down payment, mortgage, and expenses
- Build equity together: Both parties benefit from appreciation
- Access better locations: Afford neighborhoods you couldn't alone
- Shared maintenance: Divide home upkeep responsibilities
2Choosing the Right Co-Buyer
Not everyone makes a good co-buying partner:
Ideal partners have:
Red flags:
Ideal partners have:
- Similar financial habits and goals
- Compatible living expectations
- Good credit scores
- Stable income
- Clear communication style
Red flags:
- History of financial irresponsibility
- Different timelines for staying in the home
- Incompatible lifestyles
3Legal Structures for Co-Ownership
Understand your options:
Tenants in Common (TIC):
Joint Tenancy:
Tenants in Common (TIC):
- Can own unequal shares
- Can sell or transfer your share independently
- Shares pass to heirs, not co-owner
Joint Tenancy:
- Equal ownership shares
- Right of survivorship (share goes to co-owner if you pass)
- All owners must agree to sell
4The Co-Buying Agreement
Always get this in writing:
Your agreement should cover:
Your agreement should cover:
- Ownership percentages
- How expenses are divided
- What happens if someone wants to sell
- Process for buying out a partner
- Rules for renting or modifications
- Dispute resolution process
Pro Tips
- Hire a real estate attorney to draft your co-buying agreement
- Get pre-approved together to know your combined buying power
- Discuss exit strategies before you buy
- Use NestCost's Co-Buy feature to see combined affordability