So today I was reading an article on the Wall Street Journal that basically was saying that the spring real estate market is going to be slow due to the increase in mortgage rates from 3.92% to an average 4.43%. In what they’re calling an average home that increase would be $55/month. Wow! (That was sarcasm…before you chastise me for that read on!)

I have to be honest and tell all new home buyers who are contemplating buying a home to not get caught up in the trap of wait-wait-wait! When I was 27 (a pretty typical age for a first time home buyer) I bought my first home at the going rate of 17% interest…you read that right!!! Mortgage interest rates in the early 1980’s were upwards of 17-18%. And yet, young first time home buyers like me bought a home. And so can you. Here’s how:

• Shop realistically. Your first home does not need to be your 4000 sf, two story, fully upgraded forever home in the ‘best status’ neighborhood in town. Figure out your budget, meet with a mortgage broker to see what you can qualify for and shop accordingly.
• Forget all the hype you see on tv real estate shows. If you don’t like the decor of a home that fits your style and budget, remember you can buy a can of paint for under $20 and create your own pallette. Have a painting party and provide friends with beer and pizza (under $100 for a good size crowd) and have at it! You’ll already be creating memories in your new home that will stay with you forever and cost very little.
• Buy a fixer upper in that better neighborhood and fix it up to be your perfect dream home! It’s not imperative to only look at move in ready homes especially  if they are out of your price point. If you want a neighborhood and the schools there then research, watch and find that great deal that comes up even if it’s going to take some elbow grease on your part to make it what you hoped it would be the day you moved in. Again, making a home your own has great value!
• If mortgage interest rates are going up then most likely so are interest rates on savings accounts, cds and other investment opportunities. Maybe spend less on eating out, going to movies, concerts, etc and put that money to work for you in savings or to put toward your monthly payment.  Believe me, once you own your home, you’ll look forward to relaxing there alone or with friends and family.
• Keep in mind that sellers might be reading that article too and thinking they need to lower their price to be inviting to the dwindling buyers (ok, yes, that was sarcasm too) and now you can get a great deal!

I’m not trying to imply that everyone can buy a home or that $55/month might change someone’s ability to buy a ‘particular’ home. BUT if you know yourself, your money and money habits and decide you want to buy a home, then understand that 4.43% is a pretty good rate compared to continuing to pay rent and pay off someone else’s mortgage. It really does fall back to how badly do you want home ownership and what are you willing to do to get it? If you figure that out without allowing outside ‘sky is falling’ media talk to make the decision for you, you’ll do just fine!

Did you know that the federal Fair Housing Act regulates the language used in real estate advertising? According to Fair Housing guidelines, home advertising cannot say anything that could be conveyed as discriminatory or exclusionary in any way.

Seven classes are protected by the Fair Housing Act:

• Race
• Color
• Religion
• National Origin
• Sex
• Familial Status
• Handicap

To give you an idea of how this works in day-to-day advertising, here is a list of terms you should refrain from using along with potential alternatives.

• Sports-minded  (Alternative: Bonus Room great as den/office/workout room/etc…..Sports fields within the neighborhood)
  
• Bachelor apartment
• In-law apartment   (Alternative: Guest Quarters)
  
• Couples
• Singles Only
• Mature
• Married
• Seniors   (Can mention if an Age Restricted or 55+ Community)
  
• Golden Agers
• Family-friendly   (Alternative: Friendly Neighborhood/Community with parks and playgrounds or can mention if community pool includes a kiddie pool)
  
• Handicapped   (Handicap Accessible if meets legal requirements to be classified as such is ok)
  
• Children Welcome (Restrictions/Allowances can be noted if a 55+ Community)
  
• Baby’s Room or Nursery  (Alternate: Sitting Room/Bonus Room perfect for your personal needs)

More information about Fair Housing guidelines can be found here:  https://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/FHLaws/yourrights

You’re selling by owner. You’ve advertised your home and yay! you have an offer. Now what?! Here are some tips to help you take that next step with confidence and minimal stress!

1)  Prior to or upon putting your home out to prospective buyers, hire an attorney (make sure it’s a real estate attorney and not your Uncle Joe who handles divorces). Though many states don’t require you to have an attorney for closing, if you are not confident in your ability to negotiate your contract or prefer to not be involved in the day to day stresses of getting your sale to closing, the cost of an attorney may be well worth it to your peace of mind.

2)  If you prefer to not hire an attorney, but do want to prepare yourself for next steps, shop around for the title company you plan to use for your closing and ask them, “If we commit to use you for our closing, will you assist us with our contract and hold our earnest money in your escrow account?”  If they say no, keep shopping title companies. Many will agree since that makes the closing process that much easier for them.

3)  Be earnest yourself regarding getting required inspections scheduled and completed so you can move smoothly to closing. Don’t be afraid to be pro-active if things are being slowed down by inspectors not calling for an appointment or not showing up.

4)  If your buyer has an agent, don’t be afraid to stay in touch with them if the buyer is not meeting their obligations regarding financing commitments or other items included in your contract. If you have hired an attorney, they will take care of this.

5)  If you have hired an attorney, don’t be afraid to keep them focused and on point to getting you to closing smoothly and on time.

6)  Once you are confident that your deal is going to close, get your movers in line (to meet any contract requirements of when you are to vacate your home) and pack. Can deals still fall apart? Sure, so keep that in mind as you’re packing leaving the items you need on a daily basis to be the last items packed. Being prepared for the worst case scenario is a positive not tempting fate.

Very importantly, prepare yourself for the day you have to leave. For some people, moving is just something they do every few years and no big deal. But for others, leaving the home where you raised your children and/or built your family and celebrated life’s moments can be an emotional upheaval.  Have a last family gathering….a blow out party….or take time to simply relax, walk through your home room by room and enjoy your memories there as you get ready to move into the next phase of your life journey!