Buyers

Their major responsibility is to protect your interest as a buyer and as their client. Their main roles are the following:

• Educates you about your market.
• Negotiates on your behalf
• Analyzes your wants and needs.
• Guides you to homes that fit your criteria.
• Coordinates the work of other needed professionals.
• Checks and double-checks paperwork and deadlines.
• Solves any problem that may arise.

According to HouseMaster, a major home inspection company with offices in more than 390 cities in the United States and Canada, 40 percent of previously-owned homes have atleast one damage. Kathleen Kuhn, CEO and president of HouseMaster says, “Virtually every ‘used’ home needs some repair or improvement.” “That’s to be expected. But with today’s high prices, you want to make sure that you are aware of any major problems in a house you are considering purchasing, and what it will take to remedy the situation.”

From over one million home inspections, they’ve concluded that these are the most serious home defects to look out for:

• 1. Cracked heater exchange
• 2. Failing air-conditioning compressor
• 3. Environmental hazards including radon, water contamination, asbestos, lead paint, and underground storage tanks
• 4. Moisture in the basement
• 5. Defective roofing and/or flashings
• 6. Insect infestation — termites or carpenter ants
• 7. Mixed plumbing
• 8. Aluminum wiring
• 9. Horizontal foundation cracks
• 10. Major house settlement
• 11. Undersized electrical system
• 12. Chimney settling or separation

As per Kuhn, most of these damage can be repaired. But, depending on the gravity of the problem, it might cost you a lot especially if the problem is part of a major system. This is something that needs to be thought of before buying a house.

Roof repairs or a new roof could cost you at least thousands of dollars. A new air conditioning compressor could cost up to $1,200. To repair a basement will cost about $5,000. If you are already in the negotiating process, your agent should advise you to present a provision for renegotiating or backing out of the contract in the event that the inspector finds serious problems.

“If the property inspectors find that little or no corrective work is required, you have little or nothing to negotiate,” say Eric Tyson and Ray Brown in their book, Homebuying for Dummies. “Suppose, however, that your inspectors discover the $200,000 house you want to buy needs $20,000 of corrective work for termite and dry-rot damage, foundation repairs, and a new roof. Big corrective work bills can be deal killers.”

If however you are really bent on buying the house despite the problems, they offer these advises:

• The sellers can leave enough money in escrow to cover the cost of repairs, with instructions for the escrow officer to pay the contractors as the work is completed.
• The lender can withhold part of the full loan amount in a passbook savings account until the work has been done.
• The sellers may give a credit for the work. Lenders may disapprove of this last alternative because there aren’t assurances that the repairs will be made.

Get a qualified inspector. Their service costs between $250 and $400. If you want to ensure his credibility, ask for referrals from groups like organizations like the American Society of Home Inspectors or the American Association of Home Inspectors. New members are certified before they could join the group. You can also ask referrals from friends who has had to go through the same experience. But don’t leave everything to the home inspector. Invest a few hours with them asking them to explain the problem (if there are), what to look out for, how to keep your house well-maintained.

As Kuhn of HouseMasters say, “A pre-purchase inspection is your best protection against buying a home based more on emotions, rather than as a sound investment.”

According to HouseMaster, a major home inspection company with offices in more than 390 cities in the United States and Canada, atleast fourty percent of homes in the market have at least one major flaw. Kathleen Kuhn, CEO and president of HouseMaster says, “Virtually every ‘used’ home needs some repair or improvement,” “That’s to be expected. But with today’s high prices, you want to make sure that you are aware of any major problems in a house you are considering purchasing, and what it will take to remedy the situation.”

Based on HomeMaster’s findings from more than one million home inspections, here’s a list of the most serious home defects to look out for:

• Aluminum wiring
• Cracked heater exchange
• Chimney settling or separation
• Defective roofing and/or flashings
• Environmental hazards including radon, water contamination, asbestos, lead paint, and underground storage tanks
• Horizontal foundation cracks
• Insect infestation — termites or carpenter ants
• Major house settlement
• Mixed plumbing
• Moisture in the basement
• Undersized electrical system

Most of these defects can be repaired, says Kuhn. But it might you cost you a lot depending on the gravity of the damage, especially if it involves major systems. This is one of the factors you housld consider in buying a house. For example, buying a new air conditioning compressor will cost you about $1,200. A basement with damaged plumbing can cost you about $5,000 to fix. If you decide to start negotiations with a house you want to buy, there should be a provision for backing out in case the home inspector finds too many or too much problem.

Eric Tyson and Ray Brown, authors of Homebuying for Dummies says, “If the property inspectors find that little or no corrective work is required, you have little or nothing to negotiate.” “Suppose, however, that your inspectors discover the $200,000 house you want to buy needs $20,000 of corrective work for termite and dry-rot damage, foundation repairs, and a new roof. Big corrective work bills can be deal killers.”

If however you really want to buy the house despite the needed repairs, there are several ways to proceed:

• Ask the seller to allot enough money in the escrow to cover for the expense for repairs nad instruct the payroll officers to pay the contractors when the work is done.
• The lender can withhold or part or all of the loan amount in a passbook savings account until the work is completed.
• The sellers may give a credit for the work. Lenders may disapprove of this last alternative because there aren’t assurances that the repairs will be made.

Hire a qualified home inspector. Their fee usually ranges from $250 and $400. Look for home inspectors who are affiliated with organizations like the American Society of Home Inspectors or the American Association of Home Inspectors. These groups require their members to meet professional qualifications, and adhere to specific business ethics. You can also ask referrals from friends.

When you make an appointment with the home inspector, make sure you’re home. The money and time you spend on this is a wise investment for the future. As he goes throught the inspection, ask him about potential problems to expect and what warning signs to lookout for. Learn how they work and how to properly maintain them. “A pre-purchase inspection is your best protection against buying a home based more on emotions, rather than as a sound investment,” says Kuhn of HouseMasters.

When you see a house that seems exactly what you’re looking for, you’ll feel the impusle to make an offer right away. A beautiful, airy and relaxing house can make buyers easily fall in love with it. But don’t allow your emotions to make you forget about what’s real.  Leslie Levine, author of “Will This Place Ever Feel Like Home?”  says, “Sometimes we want something so badly, we’re not willing to ask all the questions we should.”

A beautiful house may only mean a beautiful facade. A closer inspection is necessary to ensure that this is really the house you want. You may see a basketball hoop over the garage and assume the neighborhood is great for kids. But a closer inspection may show that it’s rusted and hasn’t seen a ball in a decade, and that other yards in the neighborhood have no jungle gyms or tire swings out back, Levine says.

• Visit the house at different times of day
  One of the features you may love about the house is its large windows. But it can be a big problem at night when you have a peeping neighbor. If the house is beside or across a school, you may think of it  as an advantage. Visit the house during school hours so you can find out if you can handle the hustle and bustle that the school brings. You could visit a house in the middle of the day and think it’s a quiet neighborhood but it could be noisy and busy during morning or evening rush hour.
• Go through recent newspaper archives
  You might find out that the neighborhood’s water supply has a high level of contaminant; or they’re thinking of putting a high voltage line through the house  you’re eyeing. Levine suggests,  “Make sure you’re getting information on what you can’t see.” It’s also a good idea to check with the county or city for proposed projects in the area.
• Talk to neighbors
  How many of the people around you are actually homeowners? It will be hard to tell at first if most are rental houses.
• Ask the neighbors if they have an association
  “Is there a newsletter for it? How often does the neighborhood get together? Do they have a block party every year?” According to Levine, “Even if you don’t plan to attend, the fact that they’re having a gathering says they care about their community, that they want to get to know each other, that they’re willing to socialize that way. People who behave that way are building a community. They’re going to look out for your kids; they’re going to look out for your house. It’s a nice, safe way to celebrate something.”
• Ask the sellers
  The house may have had past problems that you need to know of. Even if they’ve been fixed, it’s still worth knowing so you won’t do anything that could damage it again. The house may have had water damage years ago because of an ice dam. Knowing this will allow you to prepare and take preventive measures. You might find a landscaping which might seem to be unlikely to you. But you might find out it was actually made to prevent basement flooding.
• Get a home inspection
  According to National Association of Exclusive Buyers Agents, all houses have defects. Some may be obvious and most of it can be fixed. Being aware of the damage or potential problems of the house allows you to prepare for future expense or help you negotiate for a lower price. You should also consider having your house inspected for lead, radon and wood-eating pests.
• Ask for records of past improvements
  If the house went through renovations or repainting. Ask if they could show you the receipts. If the whole project cost just $1,000, it means cheaper paint was used. Be prepared to repaint it soon. Getting these records isn’t always porrible but it’s worth the try.
• Don’t assume remodelling will be easy
  If you talk to the seller about your ideas for future improvements, they might tell you more details you need to know. For example, you might notice a shower in an unexpected place. You’ll probably discover that there’s a structural problem that would’ve cost the previous owners a lot if they put a shower where it’s supposed to be.
• Consider the view
  Levine says, “So many neighborhoods now have teardowns. So look at the two houses on either side of you. If this neighborhood has had some teardowns, one of those houses might be a candidate. And they may build some behemoth structure that affects your light or the way your house looks or your view.”
• Check the utility bills
  You may love the house for its high ceilings, walls of glass or perfectly beautiful green lawn. But it might cost a lot to maintain them. The previous owner may have paid a so much for heating or cooling.
• Consider the taxes
  It’s not enought that you look at the latest tax bill. Ask what the previous years tax bills were. In some areas, houses are re-appraised and taxed higher frequently. The house may seem like a good deal but with taxes that keep going up, you might want to reconsider. If you can’t get the information from the seller, you can also look for it in newspaper archives or ask your real estate agent about this. In some areas, the school’s funding come from property taxes. If this is the case, taxes will increase faster than in other areas.
• Check with city hall
  NAEBA suggests checking the zoning of the neighborhood. You might also want to check any potential easements, liens or other restrictions that has something to do with your property. The seller should be able to tell you this but it’s better to do your own research. You can also ask your real estate agent about this.
• Reconsider the bells and whistles
  Are you okay with a one-car garage? Are you comfortable with on-street parking?  You may consider a house with a pool as a perk but can you really afford one?
• Explore the surrounding area
  This is especially important if you’re new to the city or state. Make sure you’re not moving into an ugly part of town. I’m also certain you don’t want to move in a noisy area. Find out if the property is near an airport, fire station, police station, hospital or railroad track. You might also want to live away from agricultural or industrial areas as they are prone to air pollution.

Asking for a home loan from a friend or family member is difficult; even if they are people close to you. The money involved is big and you probably see each other frequently or at least once a year. If they turn you down, you might feel uncomfortable with each other. But if you could show them how it could also work for their advantage, you’ll achieve a favorable result.

• Asking for the loan

  Thomas Fox, community outreach director at Cambridge Credit Counseling said borrowers should approach a private home loan the same way they would a mortgage from a bank. Before you come talk to a relative or friend asking for a loan, you should come up with a plan or proposal.

  “Borrowers should be realistic about what a practical repayment plan would be and not try to borrow more than they can repay. You have to treat it the same as any kind of loan and be realistic,” he says.

  When you have a contract for the loan, even if it is with your parents, they can sue you for missed payments.

• What private home loans have in common with traditional loans
  Private home loans or private mortgages are also called intrafamily mortgages. They are not very different from a loan you could get from a bank or credit union.
  • Both parties – lender and borrower, sign a promisory note or a mortgage note. This note contains the terms of your agreement.
  • The promisory note states the following: amount that was borrowed; the interest rate; frequency and date of payments.
  • There will be a deed of trust which gives the lender the right to foreclose the property when the borrower fails to pay according to the payment plan.
  • The lender holds a lien on the mortgaged property.

  This set-up is also for the protection of the borrower. The lender cannot ask for full payment abruptly or foreclose on the property because of personal reasons. Your friend or relative can’t just change the payment plan because they changed their mind and want the money back.

• How borrowers can benefit from private home loans
  • You can get better interest rates. You can negotiate with the lender interest rates that is more reachable for you. The lender can still benefit from this arrangement even if the interest rates you propose is less than what the banks apply.
  • You can propose a payment term that’s doable for you. It can be monthly, semi-weekly or any other. But even if your lender is generous, don’t take advantage. Live up to the terms you agreed on. 
  • Federal tax deductions that apply to institutional loans can also be applied to private home loans.
• How Lenders Benefit from private home loans
  • Even if the interest rates your proposed are less than what the bank applies, they can still get more compared to other investments like a savings account in the bank or other investment.
  • This will give your friend or family extra income. The promisory note gives them a sense of assurance that they can expect a certain amount from you based on what was agreed upon.
• What happens if you miss payments?

  Sometimes unexpected things happen that will cause us to miss payments. You might suddenly lose your job or accumulate medical costs that you didn’t financially plan for. Discuss this situation with your lender. This also applies to institutional loans. The loan can be modified like lowering or postponing the payments but for a longer loan term. But don’t avoid your lender’s calls. It might lead to more problems.

Buying a home is a big move. It leads to a series of things to think about. 

One of them is whether you want to live in a condo or a single unit family house? Each choice comes with their own set of advantages and disadvantages. Only you can determine what’s best for you.

Michelle and Kevin Millsom, 31 and 36, is a newlywed couple living in Boston. Choosing to live in a penthouse apartment was the best thing for them. They don’t have any children, both have high-powered financial careers, and they love the excitement that the city had to offer.

“We enjoy everything the city has to offer—the restaurants, theatre, outdoor concerts. We walk everywhere and find the easy access to the airport to be a plus since we travel frequently for work,” said Kevin. “When we have children, we may think about a house in the suburbs, but for now this is where we want to be.”

They wanted to be at the heart of the city. So they bought a penthouse apartment overlooking Boston’s famous esplanade and Charles River.

Sounds to good to be true? As with all things, it also comes with its own share of disadvantages. They live in a two-bedroom/two-bath condo that costs way more than a home three times the size of their condo. And it’s just 20 minutes away. They share the building with fourteen other tenants which means that decision-making  with regards to the building need to be consulted with them. They also need to pay $300 per month for a parking spot for a car which they seldom use because of the convenience of their location. To most people the cost may sound unreasonable. But to Kevin and Michelle, who appreciate the convenience and the good location, the cost is all worth it.

Condo living is not for everyone. Adriana Forte, 62, chose to live in a “condex,” (a two-family home with a shared wall) in the Boston suburb of Arlington. After her divorce she chose to live in a condex thinking that taking care of a home will be too much to handle. However it turned out to be a wrong decision. “It’s difficult to live with neighbors so close,” Forte said. “First there was the noise. My neighbors are night people, and every night they are just getting geared up when I’m trying to sleep. Then I found myself handling 100 percent of the finances and maintenance of the duplex—without compensation. I may as well be living in my own house!”

She missed out on a lot of things that a single-family house can offer – fresh air and private outdoor space. Forte loves maintaining a home and a garden.

Consider these things to help you decide what is most important to you.

• Location – Where do you want to live? Are both the condo and house in the same area?
• Privacy – Are you comfortable about living closely with neighbors? How much do you value your privacy?
• Responsibility – Do you want to have full control over decision-makings for your home? Or do you want to share that responsibility with other neighbors?
• Maintenance – Do you enjoy taking of your home and garden? Or are you the type who is just not into plants?
• Budget – How much can you afford? A condo might be more reachable right now.

Life is dynamic. People change and situations change. Whatever you decide now, can still be changed to suit your current lifestyle and preferences.  

When you turn to lenders to acquire a house, they determine how much you can borrow based on computations. But do they really know your financial capacity? They can count your income and concrete expense but they don’t know exactly how much you’re regularly spending? You’re the only one who knows if your income can support your lifestyle. Do you have enough to fund housing costs? And don’t forget to leave room for new furniture’s, appliances, landscaping, repairs and maintenance.

Banks have been using the 28/36 ratio in determining how much they should let you borrow. The approved housing loan should be no more than 28 percent of the borrower’s gross monthly income. 36 percent should be the maximum total debt load of the buyer. This includes credit card payments, loans, car payments.

Canada uses a similar formula. Buyers can borrow up to 32 percent of their gross monthly income. And their total debt load should not be more than 40 percent.

But due to rising rates lenders are willing to stretch the housing loan to as much as 50 percent of the gross monthly income. But before you commit to this loan, think and rethink if you can really afford it.

Evaluate your spending habits. Think if there are areas where you can save so you can sustain the mortgage and keep a well-maintained house. After all it’s not just a matter of keeping your house. It’s also about having peace of mind.

One of the keys to finding a good home without hassle is through a good agent. More than a good resume, they need to have a good track record and a good reputation. They should be effective as an agent. Here are eight good questions to ask an agent before hiring their services. 

• Why compelled you to become a real estate agent?
• Why would I want to work with you?
• What sets you apart from other real estate agents?
• What are the things you will do in order for me to find the home that I want?
• What are the common problems encountered in real estate transactions and what will you do to avoid or fix them?
• What are the common mistakes that people do in buying their first house?
• What other professionals do you suggest we work with?
• Are you able to provide me testimonials from your previous clients?

• 1 – Decide to purchase.

  There are many good reasons why it’s beneficial to buy a home. Wealth building is one of them; perhaps the most important. It is often considered an accidental investment. But it is actually a good intentional investment if it is done correctly. The financaial benefits of owning a home are: value appreciation, equity buildup, and tax benefits. Before you decide to buy a house, think about these things. Make your decision based on facts, not hopes or fears.

  • If you are currently paying rent, you are also financially capable of paying for a house of your own.
  • Don’t wait for a perfect timing. There is never a bad time to buy a good house. What you need to do to prepare is to find a good deal and ensure that you have a steady source to keep on paying for the house.
  • Do not lose hope if you do not have enough cash for downpayment.
  • Don’t worry if your credit score is not perfect. It won’t stop you from buying your home.
  • The first step towards owning your dream house is to purchase it now.
  • Buying a new house should not give you trouble. There are professional agents who can help you.
• 2 – Hire a professional agent.

  In the process of looking for a house, inspecting it, applying for a loan and closing the deal, you will need the help of several professionals – insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, and probably more. Coordinating with all these professionals is one of the tasks of your real estate agent. Their major responsibility is to protect your interest as a buyer and as their client.  Their main roles are the following:

  • Educates you about your market.
  • Negotiates on your behalf
  • Analyzes your wants and needs.
  • Guides you to homes that fit your criteria.
  • Coordinates the work of other needed professionals.
  • Checks and double-checks paperwork and deadlines.

  • Solves any problems that may arise.

  One of the keys to finding a good home without hassle is through a good agent. More than a good resume, they need to have a good track record and a good reputation. They should be effective as an agent. Here are eight good questions to ask an agent before hiring their servit aces. 

  • What compelled you to become a real estate agent?
  • Why would I want to work with you?
  • What sets you apart from other real estate agents?
  • What are the things you will do in order for me to find the home that I want?
  • What are the common problems encountered in real estate transactions and what will you do to avoid or fix them?
  • What are the common mistakes that people do in buying their first house?
  • What other professionals do you suggest we work with?
  • Are you able to provide me testimonials from your previous clients?
• 3 – Secure financing.

  Thinking about owning a home is exciting. But when you continue with the process and think about the financial aspect, you will start to feel nervous. The thought of taking on a mortgage can be intimidating. It can be confusing and it’s a long-term commitment. Here are 6 steps that can help you understand the procedure.

  • Choose a loan officer (or mortgage specialist).
  • Make a loan application and get preapproved.
  • Think of what you want to pay and choose a loan option.
  • Submit to the lender an accepted purchase offer contract.
  • Get an appraisal and title commitment.
  • Receive funding at closing.
• 4 – Finding your home.

  Most people think that this part of the process starts with looking around. A lot of people will agree that this is the most exciting part of the journey. However if you have been doing this for quite a long time, the excitement will start to wane. To avoid unnecessary dissapointments and wasted time, start by thinking about these things – the things you value, things you need and things you want; now and in the future. As you ponder on these things, you can use these questions as a guides

  • What do I want my home to be near to?
  • How big do I want my house to be?
  • Which is more improtant for me? location or size?
  • Am I interested in a fixer-upper?
  • How important is the property’s potential value appreciation for me?
  • Is a good neighborhood important for me?
  • Am I interested in a condo?
  • Do I want a new home construction?
  • What features and amenities do I require?
• 5 – Make an offer.

  Making an offer should be done with a cool head and a realistic understanding of your market. There are three basic components in making an offer: price, terms, and contingencies (or “conditions” in Canada).

  • Price – When you make an offer, the true market value of the property should be considered. Your agent should be able to educate you on this.
  • Terms – they refer to financial and timing factors that can be involved in the offer. These terms can be:
  • Schedule – a schedule of events that has to happen before closing.
  • Conveyances – the items that stay with the house when the sellers leave.
  • Commission – the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
  • Closing costs – it’s standard for buyers to pay their closing costs, but if you want the costs to be included into the loan, you need to write that into the contract.
  • Home warranty – this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
  • Earnest money – this protects the sellers from the possibility that the buyer might cancel the deal and makes a statement about the sincerity of your offer.
• 6 – Perform due diligence.

  Once you buy a property, you can’t simply return it if something is damaged. Property inspections and a good home insurance is very important. If you’re covered under a home insurance, it can protect you in case of loss or damage on the property. And it can protect you financially against liability in case people got injured while they were on your property.

  Property inspection can detect problems that you might not see. A thorough inspection can expose damage that are not readily seen. Your biggest concern should be strucural damage. Minor damages can be repaired. If through the inspection a potentially serious problem, ask a specialist to check on it. Depending on the gravity of the problem, you might not want to push through with the sale. 

• 7 – Closing the sale.

  The last stage of the home buying process is the lender’s confirmation of the property’s value and legal statue, and your continued credit-worthiness.This involves survey, appraisal, title search, and a final check of your credit and finance. You have nothing much to do during this stage. Your agent will inform you of updates. But here are a few things you can do:

  • Stay in control of your finances.

  • Return all phone calls and paperwork promptly.

  • Communicate with your agent regularly.
  • Several days before closing, double check with your agent that all your documentation is in place and in order.
  • Acquire certified funds for closing.
  • Conduct a final walk-through.
• 8 – Protect your Investment.

  After the deal is closed you might think there is no more need to keep in touch with your agent. But your agent can still help you with the following:

  • Find professionals you might need for home repairs and maintenance.
  • Take care of your first tax return as a homeowner.
  • Monitor the market value of your home.
  • Help your friends search and buy properties.

  Taking care of your house means taking care of a good investment. A property that is well maintained adds to the value of your property. If you fix damages before they get worse will save you money in the future.

Buying a home is expensive. A lot of people want to have a home of their own but do not have enough cash or can’t get enough funding to afford a mortgage. On the other hand some people are looking for ways to be able to take advantage of tax benefits from being a home owner. So they turn to co-buying.

“Neither of us had a big enough chunk of money to put down for a home in a desirable neighborhood,” Brian Free told the U.S. News & World Report about his decision to purchase a home with his friend. “However, aggregating our resources allowed us to find a home that suited our needs.”

However, co-owning anything with a friend or relative comes with risks. But there are things you can do to reduce the risk of running into problems. Careful delibiration and planning is a must.

• Think about how you will hold title

  The decision on how to hold title will affect your say in legal documents. Unmarried co-buyers can share a title as TIC (tenants in common) or as JTWROS (joint tenants with right of survivorship). Co-owners who are married can take title via community property or tenancy by the entirety.

• TIC versus JTWROS

  With JTWROS both owners have equal shares in a home. When a co-owner has passed away, his share will go to the other owners. Consequently this means that the last surviving owner gets all the shares. In a TIC, the shares may or may not be equal. Each co-owner has its own title. Right of survivorship doesn’t work in TICs. When a co-owner dies, his share will not go to surviving co-owners. Each co-owner can pass their share to their family members or whoever they want to will it to. TICs can be dissolved if a co-owner buys out the share of the other co-owner/s. Or to sell the home, one co-owner can file a partition action.

• The similarities of a TIC and JTWROS

  In both ownership arrangements, owners have rights to the property. If it is rented or sold, co-owners each receive each will receive a part of the money that is according to their shares.

• Secure a co-ownership agreement

  It is important to lay the ground rules and protect your share. It is wise to make things clear for all parties involved before problems arise. No matter how close you are with the co-owners, there is always a possibility that ownership issues will be challenged. A co-ownership agreement can help resolve the issue.

• What are the ownership percentages?

  Joint tenants have equal shares. Co-owners in a TIC agreement can divide the shares based on the amount that each has put in for the downpayment.

• How are ongoing costs divided?

  They refer to ongoing costs like mortgage payments, property taxes, insurance, utilities and maintenance. The division of expenses like this should be part of the co-ownership agreement. Co-owners may divide this according to their shares or according to the amount of time each co-owner will put in in maintaining or improving the property. You may want to open a joint checking account so each co-owner can withdraw from this account to pay for ongoing expenses.

• What if a co-owner wants to sell?

  The co-owner who wants to sell does not need to get the approval of the other co-owner as to whom they could sell it to. However, the other co-owner can object to the sale because of their right of first refusal.