Dear Heather,

My boyfriend and I are both Bermudian and getting married in July, but we would like to buy a home before our wedding. Are we crazy to buy a home before marriage? Friends say it’s too much stress, but I think it makes sense to have our new home already bought and ready to move into before we go on our honeymoon. Can you think of any reason we shouldn’t buy a home before getting married?

Getting Married

Dear Getting Married,

Best wishes on your upcoming nuptials. I believe that every engaged couple wants to choose a home as carefully as they selected each other. Many couples buy a home today before marriage because they find it’s more convenient. At the moment you’ve probably got enough stress with planning the wedding and your future however my advice to you is the same as I would give to any committed couple.

• Make a list

Come to an agreement on essential home-buying points before engaging the services of a real estate agent. If you have common tastes, this should not be difficult. However, I have witnessed couples at odds with each other, which generally results in one party, against better judgment, agreeing to satisfy the desires of the other. So iron out your differences first.

• Types of homes

Some couples can’t agree on style. One may enjoy the traditional details in older homes over newer, while the other may insist on buying new construction. A compromise might be buying a newer home with traditional features.

• Location

Narrow down your top three choices for location and drive through in the morning, afternoon and evening. Talk to the neighbours who live on streets where you might consider buying. Consider walking through the area on the weekends as well as during the week to get an idea of traffic and neighbourhood activities. You get a much better feel on foot, than you do from the car.

• Price range

Picking a price range is easier if you talk to a mortgage officer to find out how much you can afford; this is called pre-approval. Property is expensive in Bermuda, and this can save you from the disappointment of falling in love with a house only to find out it is too expensive for you.

• The manner in which you acquire title has a bearing on legal ownership and on transfer in the event of death. You should talk this over with a real estate lawyer to find out your options and how it will affect you. The most common are:

Joint tenants: both parties own the property and one party cannot sell it without the other’s legal consent.

Tenants in common: each party owns a specific share of the property and can sell that share to another party.

• Apart from making a down payment you will also incur closing costs. Total those sums and decide how much each person will contribute to the purchase. Most people split the finances 50/50, but sometimes one person has more money than the other.

• Although marriages, unions and partnerships start out amicably, sometimes couples lose their focus and wander off in separate directions. For that reason, it’s a good idea to put all financial agreements into writing. Contact a real estate lawyer.

• Decide in advance what will happen if one or both of you decide to part company. Will you sell the home or let one party buy out the other party? If you sell:

1. How will you determine the price?

2. Who will choose the listing agent?

3. How will the net proceeds be divided?

4. What will you do if you end up having to pay to sell because, after deducting costs to sell, you have no equity?

5. What happens if your home doesn’t sell?

As you can see there is a lot to think about with home ownership. It is probably one of the biggest financial investments you will ever make. Because of this, in your case it might be better to wait until after the wedding when things have calmed down and you haven’t given yourselves an unrealistic deadline, which could lead into a rushed decision. However when you are ready, do your homework, get preapproved, get a feel for the market and property values and neighbourhoods and take your time. You will be glad you did. Enjoy your upcoming wedding, and happy house hunting!

•Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated in confidence. Read this article on Facebook: Ask Heather Real Estate