The purpose of this blog is to provide relative real estate information that home owners, renters and investors can relate to.

The vision behind DoorFly.com was to provide benefits to both parties in the real estate deal, the client and the agent. 

We hope to spread the word to all home buyers, sellers and real estate agents the great opportunities that exist for them on DoorFly.com.

#4 .  Using Your Home for Tax Deductions

Remember, tax laws can be complex and are constantly changing.  Consult with your professional tax advisor before filing any claims on your tax returns. 
Owning a home has its advantages when it comes to taxes, and they come in the form of deductions.  These tax deductions will lower your taxable income when filing your taxes, which means you keep more money in your bank account. 

Starting with the closing process, you are allowed to make deductions for any “points” you pay to reduce the interest rate on your loan.  A point is 1% of your loan amount.  In addition, the interest that you paid every month on your monthly mortgage bill is also a deductible, as well as your city, state, and county property taxes.

Another tax savings come into play when you have a qualifying home office.  This home office allows you to deduct a portion of your home expenses, such as heat/AC, electricity, etc.  Also, the Federal Government offers tax credits up to $2,000 when you repair to a home to make it more energy efficient, such as replacing old windows with double paned windows.

Real estate affordability is a major concern for home buyers in today's economy. DoorFly.com is great place to start when buying your next home. DoorFly provides a comfortable platfom for home buyers and sellers to connect with agents and to negotiate real estate agent fees. Use DoorFly.com to earn a rebate and to find a real estate agent.

#3.  Avoid Future Cost and Headaches with a Home Inspection

We all know the saying "don't judge a book by its cover."  Well the same is true for houses, so don't get too excited by a house just because it shows well!  Underneath that lovely exterior you may have problems; potentially serious problems.  A qualified home inspector will take an in-depth and impartial look at the property inside and out!  Otherwise you may fall into hidden costs associated with the home when you can no longer negotiate with the seller on price or other terms.

The cost of a home inspection is dependent on the size and characteristics of the property. Generally speaking it’s a few hundred dollars, which is a BARGAIN for the benefits you receive!  A licensed home inspector will examine for any structural concerns, plumbing issues, functionality of the electrical system and heating and cooling, check for mold and mildew, roof damage, leaks in doors or windows, etc.

We also recommend that you use DoorFly to find a real estate agent and earn a home buyer rebate. At DoorFly, buyers can compare realtor qualifications and negotiate real estate agent fees. Check out DoorFly.com today and watch as real estate agents compete to win your business.
 

#2  Increase Your Credit Score to Decrease Your Interest Rate

A credit score is a lenders snapshot of your credit history.  By looking at this one number a lender can very quickly determine how much of a risk they are facing when they lend money to an individual.  People with high credit scores are rewarded with low interest rate on their loans and low credit scores means paying higher interest rates.  The difference between a low interest rate and a high interest rate is hundreds of dollars every month on a large loan…such as a mortgage.

Since your credit score is based off of your credit history, you can bring up your score by following these tips:

> Tip # 1 Bills – Make all payments for your bills ON TIME. Late payments (payments that are 30 days late or more) have a negative effect on your credit rating.

> Tip # 2 Credit Cards - If your credit is in need of repair don’t cut up your credit cards.  If your credit is bad, you may not be able to gain additional credit cards later.  A great way to re-establish your credit is to get a secured credit card. You will have to keep a designated amount of money in an account that will be sufficient to cover your charges, and make payments on time.

> Tip # 3 Limits - Keep the charges on your credit cards way below their limits.  Lenders look at how close your spending is to your account limits.  If you keep your credit cards close to the maximum limit it shows the lender that you are over-leveraged.  It is best to keep your charges on your credit cards below 33% of their limit.

> Tip # 4 Bankruptcy and Tax Liens - Avoid bankruptcies, collections, and tax liens.  These can last for about 7 to 10 years on your credit report.

> Tip # 5 Check it! - Get a free yearly copy of your credit report to keep tabs on your progress and to catch any errors.  You can get a copy of your credit report free at www.annualcreditreport.com

Need a real estate agent to help you throughout the home buying process? By using DoorFly.com, you can easily locate a qualified real estate agent and negotiate real estate agent fees.  DoorFly provides a platform where real agents compete against other agents to win new business. Learn more about the benefits.

Buying a home can be a daunting task, especially when considering this is the largest purchase most individuals will ever make.  Therefore, reducing the financial burden of a purchase of this magnitude is something every homeowner welcomes.  This brief report will cover 5 ways to save you money on the purchase of your next home before, during, and after the closing process.

#1.  Be a Strong Buyer – Get Pre-Approved!!

When submitting an offer on a home it is important to make it stand out from the competition.  By getting pre-approved for a loan prior to submitting any offers you will instantly make yourself a stronger buyer in the real estate market.  Once you are pre-approved you will have a letter from your lender stating how much money you are qualified to borrow.  Being pre-approved is not the same as being pre-qualified, which merely states an amount that you might be able to borrow. 

It is important to find out the highest amount that you are pre-approved to borrow, and then look at homes only in your price range.  There’s no sense in falling in love with a home that doesn’t agree with your finances.  When you are ready to submit an offer, include a copy of your pre-approval letter.  Sellers will favor offers that have a firm financial backing rather than offers with none. 

If you plan to make an offer that is below your pre approved amount, request a second letter from your lender in the amount of your offer.  Your lender should have no problems doing this since you are already approved for a larger amount.  When a seller sees your offer and a pre approval letter for the same amount, the seller is less likely to ask for a higher price.  In the seller’s eyes you are making your highest offer.  This tip alone can save you thousands on the purchase of your next home.

Use DoorFly.com to find a qualified real estate agent and to save on real estate agent fees. DoorFly provides a comfortable platform for home buyers and sellers to negotiate real estate agent fees. To get started, create an account and start watching as agents bid rebates to win your business.

A buyer or seller signs up on DoorFly.com and receives a bunch of rebate offers from various real estate agents. They review the bidding agent profiles and select the top 3 agent for the job.

So what happens next? 

To start, the buyer or seller should interview these agents to learn more about their skills and qualifications. Here are some good questions to ask an agent during the interview process. (Questions provided by MSN Real Estate)
 

1. May I see your resume?
   Since you're searching for an above-average agent, look for evidence of advanced training and designations, professional recognition and membership in professional organizations, all signals of commitment to the profession.
    
2. What makes you special?
   Don't settle for someone who just promises to show you homes or list, advertise and sell your place. What you want to know is, "What sets you apart? What will you do to go the extra mile for me?"
    
3. How often will I hear from you?
   Your agent's communication style and availability should mesh well with yours. Prepare for your agent interviews by asking yourself whether, for example, you'd need a twice-weekly check-in, even if there are no homes to visit.
    
4. What's your plan for marketing my home?
   No agent can guarantee she'll sell your home. But she can tell you what steps she'll take to bring it to the attention of buyers.
    
5. How many transactions did you complete last year?
   Some agents keep score in dollars, saying, "I sold $50 million in real estate last year." But property values vary from market to market and house to house, so what you really want to ask is, "How many deals did you complete?"
    
6. What do you know about the neighborhoods where I want to live?
   A super salesperson is no good to you if she isn't doing an active business in your target neighborhoods, so ask how many of the homes she sold last year were located where you want to buy and how many listings she has there now.
    
7. Are you a solo agent or part of a team?
   There's no right answer to this question. Teams are growing in popularity. They're good for engaging several individuals' expertise at once and for allowing high-powered salespeople to concentrate on what they do best, offloading to associates tasks like filing and tracking documents, dogging details and showing houses.

Today, most consumers are afraid to make big financial decisions like buying a home during these tough economic times. However, if you can step away from the common path, you most likely will find that buying real estate in 2009 could be well worth it.  This is because this years real estate climate has never looked so well-aligned for the home buyer.

Here are 6 reasons why it makes sense to buy a home in 2009. (courtesy of MSN Real Estate and MarketWatch)

1. Affordability is better than ever.
This statement has never been more true. It's a buyers market. You can get a lot more home today for much less.

2. You have a large inventory to choose from.
By being a buyers market, it also means their are a lot more homes on the market. More inventory = less demand = lower home prices.

3. Builders are offering big discounts.
Builders have reduced their fees and costs to adjust for today's market. This is a great opportunity for those home buyers looking to build or design their home.

4. Mortgage rates are historically low.
Now is the perfect time to get pre-approved and locked in on a low interest rate. Even though it may be tougher to obtain credit, if you can get the financing, chances are in your favor of obtaining a low mortgage rate.

5. You can get a federal tax credit.
The federal tax credit of $7,500 was recently increased to $8,000 by the Obama administration. This means if you haven't owned a home in the past three years, the government will give you $8,000 just for buying a home. This tax credit is good through November of this year. The only stipulation is that you have to keep the home for three years.

Source: 5 reasons to buy a home this year - By Marketwatch

And last but not least...

6. Get a generous home buyer rebate by signing up on DoorFly.com
If you decide you're going to buy a home this year, than it makes sense to find a real estate agent to help guide you through the process. DoorFly.com provides a platform where real estate agents compete against other agents to win your business. They do this by offering a rebate back to you at closing for picking them. All you have to do is sign up (which is FREE) and watch as agents pitch to you their qualifications and an incentive rebate.

Good luck and happy home buying!
 

Performance First, Inc. announced today it has released new features on DoorFly.com aimed at connecting home buyers and sellers with qualified real estate agents.

The latest round of upgrades include the opening of home seller listings where sellers now have the opportunity to connect with real estate agents. Unlike the buyer auctions where agents bid rebates to gain business, the seller listings contain an added feature. Agents are now able to make "sales-pitches" to sellers through the DoorFly bidding system. 

Tatum Hindman, Co-Founder, talks about the new seller additions. "We added the seller section with a slight twist from home buyer auctions. Agents are encouraged to pitch their qualifications to the seller as part of their offer. The offers are more flexible to accommodate whatever agents feel is right to offer in order to win the business. This new feature allows agents who are not interested in bidding high rebate amounts to pitch their skills and experience to the seller."
 
In addition, buyers and sellers are now able to engage in private conversations with agents through private message boards. "We feel this will give both parties a chance to ask questions to one another, which can be extremely important and sometimes necessary before deciding to work together."

Please check back as DoorFly has announced more features to be released in the coming weeks.

Interested in buying or selling real estate? Go to DoorFly.com to find a real estate agent willing to give you a portion of their commission in exchange for your business. DoorFly's system allow you to find a qualified real estate agent and to negotiate real estate agent fees in a comfortable way. Learn more about these offerings.

A new feature was recently launched to help agents gain instant exposure to new buyers and sellers on DoorFly.com. DoorFly calls it "Premium Bidding."

Here's how it works:
Real estate agents have the ability to automatically submit "instant" and featured rebates to newly signed up buyers and sellers during the first hour of the auction.

Both parties benefit!
Agents benefit by getting the first opportunity to pitch their experience, qualities and rebate amount to new home buyers and sellers. And the best part... agent participation in premium bidding is free unless you are selected by the client. A low nominal fee is charged to agents who are chosen from a premium bid offer.

Buyers and sellers also benefit! They get instant rebate offers from agents as soon as they sign up!

Looking for some home buying advice? Use DoorFly.com to locate an experienced real estate agent.  DoorFly provides a comfortable environment for reviewing agent profiles and negotiating real estate agent fees.

• Assisting client in obtaining financing
• Visiting prospective homes
• Handling negotiations with the seller's listing agent
  • The offer
  • Counteroffer
  • Inspection
  • Final purchase agreement

• Negotiating with potential buyers and buyers' agents.
• Working with title companies in providing buyers survey and title data

Source: Knowing agent's role crucial to sealing deal - By Tony Miller, IndyStar

There is also another kind of agent who handles representation for both sellers and buyers on the same transaction, known as limited agency representatives. These agents, although less popular compared to listing or buying agents, are often pursued by buyers or sellers looking to pay lower real estate agent fees. On the same token, this kind of representation also appeals to agents who are looking to not split the real estate agent commission with another agent.

If you selling and looking to buy a home, be sure to check our DoorFly.com where many qualified agents are willing to save you money by representing you as their listing agent and buying agent. It's important to find a real estate agent who will help guide you through the home buying and selling process. Learn more about DoorFly's services!

The other day I received a great offer from my lender for refinancing my home loan. I'll be honest in the fact that I really didn't know much about the refinance process. Is refinancing a bad idea? If not, would it be beneficial for my situation? My lender quoted me an interest rate of 4.3% on a 15 year loan, which is great considering the economic climate.

However, does the short-term cost of refinancing make sense in the long run, or short run if I consider movng in the next couple years? I decided to do a little more research to see if refinancing was something I should really consider. Here are some suggestions to consider when facing the short-term savings from the deal.

"As with a regular mortgage, refinancing involves closing costs. Lenders are required to provide you with a good-faith estimate of those costs before closing. But it's common for a few last-minute changes to boost the overall tab. Don't forget about the prepayment penalties that may apply to your existing mortgage, particularly if you're holding an adjustable-rate mortgage. Although the use of prepayment penalties may eventually be abolished, or at least severely curtailed, they are still in effect for many borrowers.

To calculate how long it'll take for your monthly savings to pay off the costs you'll incur by refinancing, add up your closing costs and any additional penalties. Then divide that number by the savings from your new monthly mortgage payments. The resulting figure is the number of months before you break even. So if your closing would cost $2,500 and refinancing would lower your monthly payments by $85, you'd hit your break-even point in 29.4 months. In that case, if you think you might move in the next two-and-a-half years, then refinancing is probably not a good idea."

Source: When to Refinance, when to Sit Tight - By PeterMcDougall, TheStreet.com

Like the above source mentioned, if you're planning on moving in the near future, refinancing may not be the right decision as closing cost would cloud any short-term benefits.

If you're planning on moving, check out DoorFly.com to learn more about their rebate realtor bidding system. Buyers and sellers can sign for free and have the ability to negotiate real estate agent fees. DoorFly makes home buying and selling beneficial for both parties as agents can easily gain new clients and buyers/sellers can dramtically reduce the incurred real estate agent commission costs.

The sub-prime fallout has impacted many folks in the real estate business. Lending institutions have seen a lot of their loans forced into foreclosure which in some cases has lead to bankruptcy. Sub-prime borrowers have taken the other blow by defaulting on their mortgage payments and losing their home to foreclosure. The result is less people are now able to obtain home loans, especially when trying to obtain 100% financing.

However, the results are not as gruesome for everyone. Many real estate investors see it as a great opportunity for them. Real estate investor Wendy Patton, on CREOnline.com, explains the positive impact the sub-prime woes have on lease options...

"When investing in lease options, it is harder for us to find quality tenant/buyers when almost anyone who can fog a mirror can get a mortgage. Not only that, but because it was so easy to get 100% financing, most buyers save nothing and are unable or unwilling to pay much for an option fee.

With the lending companies tightening their belts, I expect we will see a growing population of QUALITY tenant/buyers who are able to pay HIGHER option fees."

Source: Why Soft Real Estate Markets are GREAT for Investors - by Wendy Patton, CREOnline.com

The other side of this is tenants may need additional time to obtain financing in order to take the option.

For investors, buying real estate during these times is a great option as home prices are at their lowest in years and quality tenants are saturating the market.

My home buying advice for potential borrowers is to locate home buyer rebates. A good place to start is DoorFly.com, where agents bid rebates to potential home buyers for an opportunity to win their business. The Website benefits both parties: Home Buyers gain a rebate realtor and agents gain a new client! During these tough time, any extra money you can save during the home buying process may be well worth it.
 

1. How long have you been licensed? Do you work in real estate full time?
    
2. What percentage of your business is working with buyers?
    
3. How familiar are you with the area where I want to purchase?
    
4. Do you have references from other buyers who have used your services? Do you have an association membership that has a published code of ethics or standards of practice?
    
5. Do you think foreclosures, bank-owned properties or for-sale-by-owner properties would be appropriate for my home search?
    
6. How often will you supply me with properties that meet my criteria? How will you get them to me? Will you point out all the negative aspects of each property as well as all the positive aspects?
    
7. Please tell me how you represent buyers to help them get the best price and terms.
    
8. Can you help me with the loan process? Do you have a list of lenders, home inspectors, insurance agents, and other professionals to recommend?
    
9. How do you get paid?
    
10. Do you have a written agreement? What is the duration of that agreement? What if I see a for-sale-by-owner house on my own?
     
11. How would you represent me as a buyer client for properties listed with your firm? Will you change your relationship with me to "dual agency", "designated agent", or "transactional broker"? How might that affect your ability to negotiate on my behalf for those properties?

• Recognize that clients follow agents, not brands;
• Become an Internet presence;
• Embrace technology;
• A virtual office is not a benefit, it's a requirement;
• Understand the following logic: The more benefits and training you give agents, the more professional they become, the better their image is to the general public.

Consumer report has released some interesting findings on trends in the real estate marketplace.  The report is showing that the real estate downturn has been second guessing seller decisions on going the FSBO route.  An increasing number of sellers are finding it more beneficial to hire a real estate agent to assist in selling real estate.

On the same token, real estate agents are also finding these times difficult in the current market. More real estate agents have considered cutting deals with sellers to gain their business. Instead of taking in the full real estate agent commission, their negotiating the agent fees with sellers. Projo.com provides more detail on this...

"Last year, a Consumer Reports readers survey found that just over 80 percent of home sellers used the services of a real estate agent, about 17 percent tried to sell on their own, and just 1 percent used a Web site.

The Consumer Reports survey also found that “many real-estate brokers are willing to cut a deal on their commissions, and readers who successfully negotiated for a lower commission, often cutting the traditional 6 percent to 3 or 4 percent, tended to be just as satisfied with the result as those who paid the full fare.”

Source: Fewer sellers going the ‘do-it-yourself’ route - By Christine Dunn, Journal Staff Writer, Projo.com

DoorFly.com's service offerings fulfill the very same needs that the trends above state. Sellers and buyers need real estate agents. Real estate agents need sellers and buyers. DoorFly connects the 2 parties together through a reverse "auction-style" online bidding. If you're a seller or buyer in need of a qualified agent and some extra money in your pocket, go to DoorFly.com to find a rebate realtor ready to serve you.

First-time home buyers have an extra incentive to start looking for a home, and soon! Last year Congress passed a law that will grant first-time home buyers an income-tax credit when they purchase a home.  Once again, another measure our Government has taken to encourage our citizens to becoming a home owner. But, you better act fast as the bill is set to expire mid 2009.

For folks that have purchased homes before, you're probably thinking why should I even read on? Well, that's because the definition of a first-time home buyer was defined fairly lightly in this bill. You can qualify as a first-time home buyer if you haven't owned a home for 3 years.  According to sources from TheBeacon.net,

"The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don't qualify.

If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.

The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit.

Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven."

Source: Homebuyer tax credit: How it works - By Leonard A. Partin, TheBeacon.Net

Once again, first-time home owners must act fast as this added financial boost expires this Summer. Find a real estate agent who can help make your home buying experience fun and rewarding.

If you're serious about buying real estate, there are many qualified agents that can help. Check out DoorFly.com's agent directory for a full listing of Rebate Realtors. In addition to the income-tax credit, agents on DoorFly will provide you a rebate from their commission just for picking them as your agent. Learn more on how easy it is to negotiate real estate agent fees on DoorFly.com.