Parental units: When real estate clients buy a home for their kid

Stepping in early to help your adult children with a first home can give them key life lessons and tax advantages, says Leonard Steinberg
  • Compass president Leonard Steinberg is seeing a surge in parents buying homes for their adult children in Manhattan.
  • Steinberg said this is a trend that could happen at all socio-economic levels and is an opportunity for first-time buyers to learn some key life lessons.
  • The agent's role is to educate the clients on the financial and educational benefits of stepping in early on, rather than waiting to leave their children an inheritance.

If your first thought when an affluent client tells you they want to buy a home for a grown-up child is, “what a spoiled brat” — banish that attitude immediately. Because if you are a believer in the real estate market, (which you should be, right?), it is both good for the market and a wonderful opportunity for these first-time homebuyers to learn about the benefits of homeownership, says one expert.