Word Count: 542 words (3 minutes to read) Many things
Since we launched the DubbleUpp program a couple months, we started compiling a list of the questions we get asked most frequently. Here are the most asked questions and their answers about buying and living with someone using a DubbleUpp. If you have your own questions, please visit our contact page and schedule a 1-on-1 meeting with one of our experts.
How long can I live in the house? Stay longer? Leave early?
This is intended as a starter home where you sell after 5 years and then take the profits to each buy a new home. You can always renegotiate as the initial term gets closer and figure out a solution that works for both of you. There are also options to leave early and be able to see some of the profits. In the DubbleUpp Agreement, there is a whole section dedicated to leaving early and how profits are shared and any penalties. All of these areas have default values we give you, but this a contract between the two buyers and anything can be negotiated.
What if I have pets?
Pets are OK with us but you will both need to give it the stamp of approval.
Who pays for property maintenance like an appliance needing repair?
All maintenance is split according to the DubbleUpp Agreement. The default value is 50-50, but that can be negotiated differently if both parties are responsible for different amounts of the mortgage or if one party uses more of the rooms in the house (home office). If you are also DubbleUpping with an investor, the investor would not be responsible for any normal maintenance below a certain threshold defined in the DubbleUpp Agreement. A home warranty may help control costs of unexpected expenses.
Do I have to pay for anything upfront?
All upfront costs (down payment, closing costs) are split according to the DubbleUpp Agreement. The default value is 50-50, but that can be negotiated differently if both parties are responsible for different amounts of the mortgage or if one party uses more of the rooms in the house (home office). If you are also DubbleUpping with an investor, the investor will cover all upfront costs.
Who pays for large expenses like a new roof or HVAC system?
All maintenance is split according to the DubbleUpp Agreement. The default value is 50-50, but that can be negotiated differently if both parties are responsible for different amounts of the mortgage or if one party uses more of the rooms in the house (home office). If you are also DubbleUpping with an investor, all parties will be responsible for larger expenses as defined in the DubbleUpp Agreement. In that scenario, the investor will cover 50% of the costs and the buyers would split the remaining 50%. A home warranty may help control costs of unexpected expenses.
What if I want to do home improvements – how does that get divided up?
Any home improvements will have to be negotiated between all parties owning the home. Depending on who will use the improvements, it may not be a 50-50 split. Increased home value should also be considered in the negotiation. If there is a must have improvement, this should be discussed prior to closing on the house to make sure everyone is in agreement.
Can I DubbleUpp with an investor and someone else to help with monthly payments?
Yes, this is something that can be done and is easily possible by adjusting the DubbleUpp Agreement. Adding an investor not only helps with upfront costs, but can also give additional assistance by sharing in the major expenses. A home warranty may also help control costs with unexpected expenses.
What if we can’t agree on a house?
If you can’t agree on a house, then we can help match you with another buyer who may be a better fit for your house requirements. Part of the process is knowing what matters to you and finding someone with the same view.
Who pays for the difference if an appraisal comes in lower than the purchase price?
That is a decision that will have to be discussed between you and the other party. Before putting in an offer, your real estate agent will give you a realistic idea of the estimated appraised value of the house. You can then have a discussion before putting in your offer so know who will be responsible for any extra amounts.
Are there any qualifications to be a buyer?
If you are matching with another buyer who will be living in the house, there are no qualifications for the program outside of normal loan program requirements. It is generally a good idea to match with someone in a similar credit/income level as you so neither party adversely affects the loan. If you are matched with someone you know, you may be ok if the rate you have to pay is a little more because of their credit. Our mortgage bankers will let you each know your credit position and you can make the decision if it is worth it or not.
What are the matching criteria?
The matching criteria when using the DubbleUpp.com site include credit, home qualification, home style, personal preferences, location, and habits. Although you may not be a 100% match for someone, you will see their profile so you can make a decision if those points matter to you
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