Got a kid in your house you are trying to get rid of? I mean like one in their 20’s that should be on their own.  In real estate we often get desperate calls from parents asking for advice on how to help them launch. After dealing with this a lot, here’s my advice:

  1. Charge them rent! They need to know how the real-world works. If you want to be generous, save all that rent and give it to them for their first down payment or for their wedding, but don’t tell them you are going to do that. Charge them enough rent so they are encouraged to find a better option OUTSIDE of your house. If you don’t, they become very comfortable, and you will be upset when you find out they leased a BMW while still living in your basement.
  2. Get them on a budget they have to share with you until they are fully independent. Schools are not teaching financial skills. If you want them to get on a budget but don’t want to get in a fight with them, tell them to go to everydollar.com and start a free account that will track their expenses and provide a free tool for budgeting that they need to show you.
  3. Be careful about co-signing a lease or mortgage with a child. Often, kids don’t have enough income to afford a property, so parents kindly cosign. If you co-sign with them, your credit score may be affected if they miss a payment. I would recommend instead providing a down payment help that is recorded in the deed so it is repaid upon a sale or you can provide a second mortgage that needs to be paid back over time at a more generous rate).
  4. Last, give them a timeline for when they need to be out. Let them feel the heat and see what they do.

It can be hard to save for a down payment, but homeownership is still the best way to build wealth in the long term. And let’s be honest, most people didn’t live in as nice a place as kids are living in now so we wanted to leave.

As a parent, we don’t want to enable our kids to live beyond their means such that they can never afford to move out. While the conversation may be difficult, tough love will serve both of you in the long term.

If you need help finding them a home, give us a call and we can assess the situation and help your child make the first step toward home ownership. Or at least tell them to do their own laundry.

#VirginiaRealEstate #DCRealEstate #TimPierson #Timpiersonteam #timpiersonhomesalesteam #piersonrealestate #piersonteam #KwUnited #KWvirginia #KWDC #NorthernVirginiaMagazine #Washingtonian