Seven years ago, Phil Levin and his girlfriend, Kristen Berman, pondered a common question: Should we move in together?

Levin assumed theyB次元官网网址檇 take a predictable path and find a more affordable apartment outside of pricey San Francisco. But Berman, a behavioral scientist, shared her reservations about leaving their friend network B次元官网网址� and some facts to back it up.

B次元官网网址淎ll the behavioral science research shows that thatB次元官网网址檚 one of the worst things you can do for your happiness,B次元官网网址� Levin says.

Instead, the couple rented a Victorian-era mansion in San FranciscoB次元官网网址檚 Hayes Valley neighborhood and invited nine friends to move in. Today, they co-own a multi-unit property in Oakland, California, called Radish, which houses 17 adults and two infants.

It took some effort to find the right property and figure out finances. But the now-married couple couldnB次元官网网址檛 imagine designing their life B次元官网网址� or raising their daughter B次元官网网址� any other way.

B次元官网网址淏eing able to have this extended family of B次元官网网址榓untiesB次元官网网址� and B次元官网网址榰nclesB次元官网网址� close by has been wonderful,B次元官网网址� Levin says.

Many co-buyers operate on a smaller scale. But no matter the size of your group, co-buying requires extra planning and paperwork. If youB次元官网网址檙e willing to get vulnerable about your finances and long-term goals, the payoff of companionship can be worth it.

KEEP AN OPEN MIND

In the National Association of RealtorsB次元官网网址� 2022 Profile of Home Buyers and Sellers, a record-high 5% of were B次元官网网址渙ther household compositionsB次元官网网址� B次元官网网址� that is, something different than single, married or coupled.

B次元官网网址淚t can be a great situation, and a way to enter the market that they wouldnB次元官网网址檛 be able to enter otherwise,B次元官网网址� says Don Koonce, a real estate agent in Seattle who has helped dozens of co-buyers during his eight years in real estate.

Many co-buyers Koonce has worked with are platonic friends who have been living together for years. But theyB次元官网网址檙e as diverse as the types of homes they buy, which range from traditional single-family homes to condos and duplexes.

The right home depends on your groupB次元官网网址檚 size and tolerance of personal versus shared space. Houses with basements work well for separate living spaces, Koonce says, or you could remodel.

Recently, Koonce helped a mother and daughter buy a split-level that they renovated into two distinct units, including separate kitchens.

B次元官网网址淚t was beautiful,B次元官网网址� he says. B次元官网网址淚 donB次元官网网址檛 see any problem with a resale on that, because somebody could rent it out.B次元官网网址�

STRESS-TEST YOUR RELATIONSHIP

Even for family members or experienced roommates, the financial commitment of co-buying raises the stakes.

Ashley Agnew is a n investment advisor and financial therapist with Centerpoint Advisors, a wealth management firm in Needham, Massachusetts. When working with co-buyers, she role-plays worst-case scenarios to B次元官网网址渟tress testB次元官网网址� the relationship, such as how theyB次元官网网址檇 handle major home repairs or theft.

B次元官网网址淵ou really do have to get a little bit financially naked with the person that youB次元官网网址檙e buying with,B次元官网网址� she says. B次元官网网址淭here has to be a lot of transparency.B次元官网网址�

Agnew always recommends that co-buyers seek legal counsel. An estate attorney can draft a cohabitation agreement B次元官网网址� something thatB次元官网网址檚 not just for romantic partners, she notes. That way, all parties know what to expect if someone wants out of the homeownership commitment.

B次元官网网址淚tB次元官网网址檚 almost like running a minibusiness, especially if itB次元官网网址檚 not a coupleship,B次元官网网址� Agnew says.

An estate attorney can also help co-buyers understand options for titling the home, such as joint tenancy or tenancy in common. Each arrangement has pros, cons and legal obligations.

FIND THE RIGHT RESOURCES

To move your plans from dream to reality, itB次元官网网址檚 essential to find a lender that is familiar with B次元官网网址� and supportive of B次元官网网址� co-buyersB次元官网网址� unique needs. ThatB次元官网网址檚 often the first hurdle, Koonce noted. Some realtors hesitate to work with co-buyers, too.

B次元官网网址淚tB次元官网网址檚 a lot more paperwork,B次元官网网址� he says, B次元官网网址渁nd a lot more coordinating and getting people to agree.B次元官网网址�

To provide better service, Koonce earned a professional certification established by Seattle-based real estate startup CoBuy. The company offers education for real estate agents, attorneys and lenders, as well as services for co-buyers themselves.

After establishing Radish, Levin found his inbox flooded with questions about co-buying and co-living. The interest exposed an information gap: People craved trusted guidance on how to do this successfully.

So in 2020, Levin teamed up with close friend Gillian Morris to co-found the Substack newsletter . It provides advice, templates and tools to navigate common challenges of co-buying and co-living.

B次元官网网址淲e didnB次元官网网址檛 invent this concept,B次元官网网址� Levin says. B次元官网网址淲eB次元官网网址檙e sort of standing on the shoulders of other people, so thereB次元官网网址檚 sort of a pay-it-forward element where we wanted to have other people experience the happiness and meaning that weB次元官网网址檝e gotten through this.B次元官网网址�

B次元官网网址擜bby Badach Doyle Of Nerdwallet, The Associated Press