Exes consider selling paid-off home to their children
From your kids’ point of view, the house may not be near their friends, their jobs, or the activities/nightlife they would prefer. The property may not be upgraded or refreshed, and they’ll be living in their childhood home. Their cons are more about location and emotional attachment than anything else.
A final thought: Are your children close? Are they able to mesh their adult personalities enough to adjust to living together for the next five to 10 years? How will they hold title to the property? Are they mature enough to work out their disagreements amicably? What happens when one wants or needs money and decides to sell the home?
They should treat this purchase as the significant investment that it is and sign a partnership agreement. This agreement should spell out what happens if one wants to stay and one needs to sell, or if they decide to renovate or rent the property long-term.
Perhaps one child takes a job in another state and the other can’t quite afford to carry the property on their own income. Or, one child gets married and wants to buy out their sibling. All possibilities should be thoroughly explored, with resolutions spelled out in the agreement, right down to how the valuation of the house will be determined when the time comes.
If these conversations are above board, and your children want this and go into it with the right attitude, there’s no reason it can’t be a win-win for everyone. But there are lots of ifs and questions that need to be answered before you decide to go down this route. Good luck.
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(Ilyce Glink is the author of “100 Questions Every First-Time Home Buyer Should Ask” (4th Edition). She is also the CEO of Best Money Moves, a financial wellness technology company. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact Ilyce and Sam through her website, ThinkGlink.com.)
©2024 Ilyce R. Glink and Samuel J. Tamkin. Distributed by Tribune Content Agency, LLC.
