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

  • 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.

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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.