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

Levin assumed they鈥檇 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 鈥� and some facts to back it up.

鈥淎ll the behavioral science research shows that that鈥檚 one of the worst things you can do for your happiness,鈥� Levin says.

Instead, the couple rented a Victorian-era mansion in San Francisco鈥檚 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 couldn鈥檛 imagine designing their life 鈥� or raising their daughter 鈥� any other way.

鈥淏eing able to have this extended family of 鈥榓unties鈥� and 鈥榰ncles鈥� close by has been wonderful,鈥� 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 you鈥檙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 Realtors鈥� 2022 Profile of Home Buyers and Sellers, a record-high 5% of were 鈥渙ther household compositions鈥� 鈥� that is, something different than single, married or coupled.

鈥淚t can be a great situation, and a way to enter the market that they wouldn鈥檛 be able to enter otherwise,鈥� 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 they鈥檙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 group鈥檚 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.

鈥淚t was beautiful,鈥� he says. 鈥淚 don鈥檛 see any problem with a resale on that, because somebody could rent it out.鈥�

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 鈥渟tress test鈥� the relationship, such as how they鈥檇 handle major home repairs or theft.

鈥淵ou really do have to get a little bit financially naked with the person that you鈥檙e buying with,鈥� she says. 鈥淭here has to be a lot of transparency.鈥�

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

鈥淚t鈥檚 almost like running a minibusiness, especially if it鈥檚 not a coupleship,鈥� 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, it鈥檚 essential to find a lender that is familiar with 鈥� and supportive of 鈥� co-buyers鈥� unique needs. That鈥檚 often the first hurdle, Koonce noted. Some realtors hesitate to work with co-buyers, too.

鈥淚t鈥檚 a lot more paperwork,鈥� he says, 鈥渁nd a lot more coordinating and getting people to agree.鈥�

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.

鈥淲e didn鈥檛 invent this concept,鈥� Levin says. 鈥淲e鈥檙e sort of standing on the shoulders of other people, so there鈥檚 sort of a pay-it-forward element where we wanted to have other people experience the happiness and meaning that we鈥檝e gotten through this.鈥�

鈥擜bby Badach Doyle Of Nerdwallet, The Associated Press