We are proud to announce and be included in the top 50 marketing technology companies in Central Indiana! DoorFly is a unique inclusion on the list because it is a true marketing vehicle for real estate agents to find new business and promote their services to individuals buying and selling real estate.

We know from personal experience that home buying and selling real estate is a tough process. It is important to have a good real estate agent, and DoorFly allows you to do that while comparing agent qualifications, services, fees, and rebate offers.

DoorFly.com helps real estate agents market themselves in our free agent directory and make offers to win business with local home buyers and sellers.

Create your DoorFly real estate agent profile today and thanks Doug Karr for including us on the list!
 

#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.
 

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.

Wieland says he’s still offering 5 percent to 25 percent discounts on one more home in each of the 56 neighborhoods. And he plans to continue promoting the housing industry's role in economic recovery on his blog at www.GetHousingMoving.com.

Read the full story >>
Original announcement in March >> 
Builders teaming up to maximize purchasing power >>

I hope that Mr. Weiland is correct that home buying and the real estate industry are the key to economic recovery. At DoorFly, we would like to help too and encourage home buying and the use of our system to find a realtor and earn a home buyer rebate.

Home Selling Advice for For Sale By Owners

#1) Establishing The Value--Pricing your home to sell

The pricing of a house is a top reason why a house will or will not sell quickly. Although the pricing should not be dealt with lightly, some sellers have a tendency to put too much emphasis on the price and not enough on the condition, ending up with a house that is overpriced for its current condition and the overall market.

Why it is important to get the price right from the start

• If the house is overpriced, it won't sell, no matter if your a realtor or selling real estate yourself.
• If you overprice the house with the intention of reducing the price later just to "see what the market will bear", when the price of the house is lowered, it signals to home buyers that it was (and still may be) overpriced.
• If the house is under priced, it most likely will sell quickly--to the detriment of your net proceeds.

How to set the price

• A comparison of similar properties in the same general area that compares actual sold prices. Click here for an On-Line Home Evaluation Service so you can obtain an accurate report on the value of your home before listing it for sale. Important information to look at is the general location in comparison to your property, sale date related to the current market, price and square footage. It is recommended to review and compare up to 30 comparable properties in real time. Remember that individuals buying real real estate will be looking at similar statistics provided by their research or real estate agents and consider these facts when considering your home.
   
• A professional appraiser can also provide an estimated value on your house. An appraisal will take into account location, condition and sale prices of comparable properties in the neighborhood.

• A recent study by the U.S. Department of Justice found that people who sell their own homes can save as much as $7,500 in real estate commissions on the sale of a median-priced house.
   
• According to the For Sale By Owner web site, depending upon the metro area and region the success rates of FSBO range from about 40% to 85%.
  
  Like all real estate marketing, the most important factor is the location of your property (both from a local and regional standpoint). It's the same issue that real estate agents face. Attractive properties (good homes in good areas, that are priced correctly) sell quickly and unattractive ones don't.
  
  If anyone has more information about statistics for FSBO, please leave a comment on this post.

• It is a statistical fact that the competent agent negotiates a higher sale price than the owner does. The buyer responds differently to the agent than they typically do with the seller.
   
• The buyer of a "By Owner" expects to pay less than the fair market value because they don't expect the services of the professional.
   
• FSBOs sell at least 3% below the real estate industry sales.
   
• For Sale By Owner sales typically take longer to secure an offer and longer to get the offer to closing.
   
• If the property is on the market just one month longer than it could have been, about 1% is lost in costs to the seller.
   
• Statistics tell us that only about 3% - 4% of home buyers actually buy the home that they called on.

Were you planning to try to sell your home yourself (FSBO) because you want to save the realtor commission?
This is not a bad idea for some, but it may not always work. Oftentimes, the home seller is left watching the value of their property drop, while the mortgage ticks up. Real estate agents can provide valuable expertise to the process - especially when it comes to the complicated parts of the transaction (e.g. negotiating price, paperwork).

If you are trying to save the real estate commission and for sale by owner is not working out, we want to tell you that the real estate agent commission is negotiable! What?! Yes, the real estate agent commission is something that you can negotiate with the Realtor.

It is a hidden secret in the industry that the agent fees are set at 6%. This is not by law and you can save thousands of dollars when you sell your home, but just asking to for reduced commission.

You might be asking, can I get a full service Realtor at a discount price? The answer is yes. Negotiate for what you want.

That seems a little bit intimidating, right? It can be, especially since Realtors take pride in what they do and many do not want to offer a "discount". But, there are many agents that are willing to reduce their rates especially in this tough market.

This is where DoorFly.com comes in. DoorFly.com is a system that will allow agents to make offers and discounts on their service to home sellers in a non-intimidating way. You can compare the discount offers and review the agent qualifications all in one place before making a decision.

So what's the inside scoop -- DoorFly.com is a great alternative to For Sale By Owner when you are selling your home. Our system will help you negotiate real estate agent fees and save thousands of dollars while still getting the expert help you need.

Home buying can be a great opportunity to reduce your ecological footprint.

Looking beyond the décor, consider the location, size and style of your house and take advantage of government grants for home energy audits for a resale home.

You may wish to consider a new EnergyStar home.

Find a Green Realtor
Find a Realtor with good knowledge of environmental issues and programs and services available to assist homeowners to reduce energy. You may review real estate agent profiles at DoorFly.com and use private message boards to ask them about their 'green' knowledge.

Conduct an energy audit
The Home Energy audit is such a new concept that most resale homes will not be energy rated. & Again, if you are considering a new home purchase, and if it’s available, consider an Energy Star certified home.

Location is Imperative
Consider how close the house is to shops, school, Church, entertainment, workplace and other amenities that you often utilize. Think in relation to all members of the household. Choose your location very carefully.

Size Matters
Although large houses are still popular, the trend will be for smaller homes and more efficient floor plans with no space wasted. The smaller the home, the less energy needed for heat and light and the less you money spent on utilities.

Expect to Upgrade
Once you have found the home you want, go ahead with a professional energy audit and expect to upgrade and implement some of the suggested changes. Re-decorate with low-VOC paint, upgrade the air system, remove old carpet and replace with wood floor. Renovate according to your ecological principles. The Canadian government will pay 50% (up to $150.00 max) towards the audit and provide grants towards certain upgrades. Visit the Home Energy Savings website http://www.homeenergyontario.ca
Remember: Anything upgraded will add value to your investment and create a greener, healthier home.

Research your renewable-energy potential
Another new trend - depending on where you live there is an exciting possibility of generating some or all of your own electricity with rooftop solar panels or a backyard wind-turbine. The costs of solar, wind, and geo-thermal power are falling and becoming easier to find. This may not be attainable immediately in your area so keep an ear to the ground for news to come.

The Yard
Just as smaller houses are becoming popular, so too are smaller yards. Less lawn means less water. A small space for a garden is ideal to grow some of your own fruits, vegetables and herbs. Some vegetables may be grown in containers- so yards do not need to be acres to produce enough for an average household. Also, consider a space for compost pile or bin, if you don’t need to worry about wildlife. & look for shady trees to help conserve energy in hot weather.

Programs and Incentives for Buyers and Sellers

Confident buyers are taking advantage of the great opportunities available for buying real estate. With historically low interest rates and a good supply of properties for sale, buyers are stimulating the spring market early this year.

The recent federal budget outlined a new tax credit that will provide assistance for homeowners to renovate their homes and increase real estate affordability.

Example:
A property owner who replaces all windows in the house may spend $10,000.00 in 2009. After taking into account the $1,000 minimum threshold, a 15-per-cent credit will be available on $9,000 in eligible expenditures, providing a tax credit of $1,350.

The credit is subject to the principle residence only and one credit per household. Homeowners should save all receipts that qualify and claim them on their 2009 tax return.

Wondering what types of products, services and expenses are eligible?

Eligible

• Renovating a kitchen, bathroom or basement
• New carpet or hardwood floors
• Building an addition, deck, fence or retaining wall
• A new furnace or water heater
• Painting the interior or exterior of a house
• Laying new sod
• Labor costs;
• Professional fees;
• Building materials;
• Fixtures;
• Equipment rentals; and Permits

Ineligible

• Furniture and appliances (refrigerator, stove, couch);
• Purchase of tools;
• Carpet cleaning; and
• Maintenance contracts (furnace cleaning, snow removal, lawn care, and swimming pool cleaning

Additional information from the article source.

Check out DoorFly to find a real estate agent and earn a home buyer rebate. Save even more and take advantage of the current housing market.  

While most home buyers will clean the home to their own standards before moving in (regardless of a sellers' efforts), below is a list of things to do in effort to leave a home reasonably clean when you sell your home:

Cleaning Inside the Home Before Moving Out

• Remove all personal property.
• Vacuum the floors.
• Clean kitchen appliances, inside the refrigerator and oven, and wipe down counters.
• Scour sinks and tubs.
• Wipe down interior cabinets and shelves.
• Wash tile and vinyl / linoleum flooring.

Cleaning the Garage

• Remove personal belongings.
• Throw away trash.
• Properly dispose of toxic chemicals.
• Sweep the floor.
• Stack items pertaining to the home such as paint cans, roofing materials or extra flooring.

What is the legal home seller requirement for cleaning?

In some states, real estate purchase contracts stipulate that the home is to be "broom clean," meaning the seller should at least sweep the floor, the walls and ceiling. The language in some of these contracts is ambiguous.

To determine the extent of cleaning that you are contractually bound to do upon vacating, you should read your purchase contract.

• Home Seller Checklist
• Home Selling Guide

Many new terms will be heard in conversation with your real estate agent, mortgage broker, friends, and others during the home buying process. See below some of the most commonly used terms to understand when buying real estate. (Source)

• Buyer beware (also known as caveat emptor): The buyer alone is responsible for assessing the quality of a purchase before buying.
   
• In its present condition: the new, less frightening way to say “as is.” Basically a "take it or leave it" home sale. 
   
• Earnest money: a home buying deposit given to the seller to show that a prospective buyer is serious about buying the house. This money is forfeited if the buyer does not follow through with the purchase and sale agreement.
   
• Pre-approval: a lender has looked closely at both your credit report and your income and determined that you qualify for a loan. The lender will tell you the maximum amount of loan it will make, which loan programs you qualify for, and will discuss the interest rates it will offer for different types of loans.
   
• Pre-qualification: loan pre-qualification does not typically include an analysis of your credit report or an in-depth look at your true ability to buy a home. The term means that someone has taken a general look at your income and expenses and plugged them in to a debt-to-income ratio formula. It does not guarantee a loan.
   
• Contingency: a condition that must be satisfied before a contract is legally binding (e.g. the sale is contigent upon home buyers sale of their current home within 1 month).

Are you home buying for the first time? There is so many things to learn during this process and we know that it can be overwhelming. HGTV posted really good home buying advice from Sandra Rinomato that we wanted to share -- especially useful advice for first time home buyers. (source)

• Don't forget to set aside money for closing costs when budgeting out what you can afford. It's typically 1-1/2 to 2 percent of the purchase price. That goes toward the land transfer tax and pays a lawyer.
   
• For resale, curb appeal goes a long way. But make sure you don't over improve for the area. Some houses have a cap on them, which means it is only gonna be worth a certain amount no matter what the homeowners do to make improvements.
   
• Brand-new condos tend to be smaller, sometimes no larger than one bedroom, while older units typically have more square footage.
   
• When figuring out the price of a property, sometimes it makes more sense to look at the price of a house in terms of monthly payments instead of focusing on that big number.
   
• Real estate never sleeps. If you're trying to buy a hot property, you have to move quickly, or you could possibly lose it.
   
• Sometimes people think that by starting really low they'll end up with a better price on a house, but actually it usually works the opposite way.
   
• You don't necessarily want to buy in a building that has a high percentage of tenants because they don't take care of the property the way they would if they owned.
   
• If you're going to live in a city, you often have to sacrifice space.
   
• Before you start renovating a condo, live there for a year to make sure you're doing the right thing.
   
• Properties in good shape are rare, and they don't stay on the market for long.
   
• You can make changes to the inside of a condominium, with the proper condo board approval, but never to the exterior.
   
• You can't negotiate maintenance fees with a condo, and those fees tend to go up periodically.
   
• When you buy new, you have to put down 10 percent within six months or 15 percent within nine months. Also, until the place is registered, you can't get title. Until you get title, you can't place your mortgage, so during that time you're paying what's known as a phantom mortgage or an interim occupancy fee that goes toward nothing — it's like rent.
   
• It's better to walk away if you're not comfortable with the situation.
   
• When making an offer, you want to go as low as possible without insulting the sellers.
   
• It's the market that determines the value of a house.
   
• A simple renovation after the sale can boost the value of the investment by thousands.
   
• A middle-unit townhome is often less expensive than an end unit.
   
• Try not to fixate on the list price of a house, but rather the fair market value (an estimate of what a buyer would pay a seller for any piece of property).
   
• When it comes to investing, the best place to invest is in an up-and-coming area.
   
• It is especially important to have a home inspection if you are looking to buy an aging or older house. They look past the visible surface to the infrastructure, inspecting plumbing and looking for faulty fixtures and waste lines. They check electrical systems to make sure they aren't overloaded or a safety hazard. They also look at possible structural problems like the foundation, walls and floor joists.
   
• The old adage holds true. If it ain't broke, don't fix it.
   
• It's great to have your financing in place before you look because houses are bought and sold overnight. You could lose your dream property waiting to secure the financing.
   
• When a house is empty, buyers can see the actual size of each room and can better visualize their things in them.
   
• When a renovated house is priced low, it is a good indication that the owners are looking for a bidding war — they want to get as much money as possible out of the sale.
   
• When you're house shopping, you can't pull a number out of a hat. Find out what other homes in the area have sold for, how long ago the sale was and what amenities they have.
   
• What you want to pay for a house has nothing to do with the fair market value (an estimate of what a buyer would pay a seller for any piece of property). Also, what you can or cannot afford has nothing to do with the value of a house.
   
• The key to success when buying a home is to trust the experts.
   
• Before you begin to house shop, you need to have an idea of what kind of neighborhood you want to live in and the style of house you want.
   
• The rule of thumb is that you should be able to afford a mortgage three times your income.
   
• Lenders subtract any debt payment from your income, so if you have a big debt, you have a lot less income — and a lot less house.
   
• When you are looking at a house, you have to have a wish list, but you have to understand that no house is going to be perfect.
   
• Don't judge a book by its cover. Same goes for a house. Go inside and look around before making a decision.
   
• When you buy a property, you should always have a home inspector come through. You never know what they're going to uncover, so don't crack the champagne just yet. If the home inspector should find something, then you can use it to your advantage to renegotiate the deal. Or you might have to walk away.
   
• You have to see past the junk and see the potential. When you buy a house, it's not just a place to live in, it's an investment. Keep in mind your dollars down the road.
   
• Home staging is big business. It can add thousands of dollars to the selling price. An unstaged house that has not been properly prepared for sale will sell for much less than the asking price.
   
• Feelings often take over the first time you go through a house, but the second visit allows time to do a thorough inspection led by your head, not your heart.
   
• The three most important matters when it comes to negotiation are information, preparation and realism.
   
• Reality often outweighs fantasy when it comes to buying a home.

As spring approaches, many new homes will go on the market and buying real estate will hopefully be on the upswing. In order to sell your home and make it stand out from others on the market, it needs to be prepared properly -- often called "home staging". Below is home selling advice to get your house ready for sale.

Every one selling real estate wants their home to sell fast and bring top dollar. Careful planning and knowing how to professionally stage your home will increase home buyer interest and potential offers. Here is how to prep a house and turn it into an irresistible and marketable home (source: About.com).

1. Disassociate Yourself With Your Home.

• Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
• Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
• Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
• Say goodbye to every room.
  Don't look backwards -- look toward the future.

2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."

3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.

• If you don't need it, why not donate it or throw it away?
• Remove all books from bookcases.
• Pack up those knickknacks.
• Clean off everything on kitchen counters.
• Put essential items used daily in a small box that can be stored in a closet when not in use.
• Think of this process as a head-start on the packing you will eventually need to do anyway.

4. Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:

• Alphabetize spice jars.
• Neatly stack dishes.
• Turn coffee cup handles facing the same way.
• Hang shirts together, buttoned and facing the same direction.
• Line up shoes.

5. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"

6. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.

7. Make Minor Repairs.

• Replace cracked floor or counter tiles.
• Patch holes in walls.
• Fix leaky faucets.
• Fix doors that don't close properly and kitchen drawers that jam.
• Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls.
  (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
• Replace burned-out light bulbs.
• If you've considered replacing a worn bedspread, do so now!

8. Make the House Sparkle!

• Wash windows inside and out.
• Rent a pressure washer and spray down sidewalks and exterior.
• Clean out cobwebs.
• Re-caulk tubs, showers and sinks.
• Polish chrome faucets and mirrors.
• Clean out the refrigerator.
• Vacuum daily.
• Wax floors.
• Dust furniture, ceiling fan blades and light fixtures.
• Bleach dingy grout.
• Replace worn rugs.
• Hang up fresh towels.
• Bathroom towels look great fastened with ribbon and bows.
• Clean and air out any musty smelling areas. Odors are a no-no.

9. Scrutinize.

• Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
• Linger in the doorway of every single room and imagine how your house will look to a buyer.
• Examine carefully how furniture is arranged and move pieces around until it makes sense.
• Make sure window coverings hang level.
• Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
• Does it look like nobody lives in this house? You're almost finished.

10. Check Curb Appeal.
If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.

• Keep the sidewalks cleared.
• Mow the lawn.
• Paint faded window trim.
• Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
• Trim your bushes.
• Make sure visitors can clearly read your house number.

If you are a First Time Home Buyer, You are Eligible for an $8,000 Tax Credit!

As part of the recent US government stimulus, the First Time Home Buyer Tax Credit has become a cash payment that does not have to be repaid.  That’s right…no repayment!  This is a pretty exciting development for someone considering a home purchase in 2009 (it’s only in effect through December 1, 2009).  Now, this program is only for first time home buyers (or those who’ve not owned a home in the past 3 years).   Interestingly, you can actually get access to this credit BEFORE you file your 2009 taxes, so you can use the money to help you buy the home now!  To ensure you have the information you need, I’ve compiled the top 5 most frequently asked questions about the program below.

1. Who is eligible to claim the tax credit?
   If you are a first-time home buyer purchasing a new home or a resale—you are eligible for the tax credit.  The purchase must take place on or after January 1, 2009 and before December 1, 2009 to qualify for the tax credit. As it applies to the tax credit, the purchase date is the date when the home closes and the title to the property transfers to the home owner.
    
2. What is the definition of a first-time home buyer?
   The tax credit law defines a "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. If you are married, both spouses cannot have owned a home.
   
   For example, if you didn’t own a home but your spouse did, you do not qualify.  For unmarried purchasers, the credit amount can be given to any buyer who qualifies as a first-time buyer, for instance, if a parent jointly purchases a home with a son or daughter. If you owned a vacation home or rental property not used as a principal residence you are not disqualified as a first-time home buyer.
    
3. How is the amount of the tax credit determined?
   The tax credit is 10 percent of the home’s purchase price, however, there is a maximum $8,000 credit.
    
4. Can you give me an example of how the partial tax credit is determined?
   There is a $20,000 difference between those who are eligible for a full tax credit and those where the credit is reduced to zero.  If you take the amount you are over the limit by and divide it by the 20,000, this will give you the percentage that you are over the limit by.  Subtract that number from 100% and then multiply it times the $8,000.  That will give you your tax credit amount.
   
   For example: A married couple has a modified adjusted gross income of $165,000. Their income exceeds $150,000 by $15,000. Dividing $15,000 by $20,000 yields 0.75.  This means they are over the limit by 75% and so are eligible for a tax credit of 25%.  Multiplying $8,000 by 0.25 shows that the buyer is eligible for a partial tax credit of $2,000.
   
   Please remember that this is an example. You should always consult your tax advisor.
    
5. Is there any way for a home buyer to get the money before they file their 2009 tax return?
   Yes. If you believe you will qualify for the tax credit you can reduce your withholding taxes on your paycheck by adjusting your withholding amount on your W-4 via your employer or through your quarterly estimated tax payment.  You can put this saved money aside to use as a down payment.
   
   IRS Publication 919 contains rules and guidelines for income tax withholding. Please note that if the qualified purchase does NOT occur, then you will be liable for repayment to the IRS of income tax and possible interest charges and penalties.  Consult your account prior to doing this.

There are a lot more questions and more information out there about exactly how this program works and about how you can use this program for your specific situation. Read the full FTHB Tax Credit 20 questions and answers list. And remember to consult a qualified home mortgage expert for counsel on your specific home buying situation!

Credit: Cameron Moss
Flagship Mortgage Corporation
“Expert Real Estate Finance”
Batesville, Indiana Branch Office
cmoss@flagshipmortgage.net
www.indianaloantips.com

Spring is in the air! Daylight Savings Time begins on Sunday, so remember to set your clocks 1 hour ahead.

If you are getting ready to sell your home this Spring, read our home selling advice below.

Make your home stand out.
There are a lot of foreclosures on the market, but these homes tend to be in a state of dis-repair. You want to market your home to those that are looking to purchase a home that is ready to move into. See more specific suggestions below.

Remember to do the little things to make your house stand out.

Here are a few examples:

1. Wash the windows inside and out. Clean all the mirrors to shine.
2. Set out fresh flowers with a fresh and inviting smell.
3. Polish hard wood floors to shine and vacuum right before any showing.
4. Offer a shoe mat at the entrance and even an umbrella stand. This will encourage prospective buyers and agents to remove their shoes and help keep your floors looking great.
5. Fluff pillows and put out fresh towels in bright colors. Even consider replacing these items because they are inexpensive and can add interest to a room.

First impressions count.
Landscaping is always a good idea. With spring on the way, it should be easy to make your home look amazing on the outside.

1. Mow your yard with diagonal rows to make your yard appear larger.
2. Edge the lawn along driveways and sidewalks. This will show the buyer that you care and pay attention to detail.
3. Transplant tulips or other spring flowers near the walkway or anywhere in the front. Yellow stimulates happiness and everyone is anxious to see flowers in the Spring after a long Winter. Consider container plants also in groups of three to five and place near the entrance.

Paint your walls white.
White walls let the potential home buyers imagine their own style in the home instead of yours. It also makes every room feel bigger. Avoid dark colors which can discourage a home buyer if they do not like the color and makes the room look smaller.

If you have an open house, purchase bright colored helium balloons for in front of your home. This will help you home stand out and no one will miss it.

We also recommend you find a real estate agent using DoorFly.com and negotiate real estate agent commission. DoorFly recently opened home seller listings and allows you to compare agent offers that will help with selling real estate.
 

Buying real estate in 2009 presents challenges. Financing is difficult and who knows what will happen to your job in this economy.

If you have the money and can hang on to a home for five years or more, there's a huge inventory of homes for sale priced at levels not seen since 2004.

Of course, not everybody agrees that homes selling well below list price can be considered discounted. Maybe they were just overpriced, says Barry Nystedt, the president of the National Association of Exclusive Buyer Agents.

Redfin offers the following home buying advice to increase real estate affordability:

1) Find seller listings on the market for 90 days or more
Smart home buyers have long known that if a home doesn't sell in three months, the listing becomes stale. Redfin says the more deeply discounted homes were 83% more likely to have been listed 90 days or more.

Interestingly, the discounts didn't increase after 90 days, so it's not crucial to wait longer to make a bid.

2) Bid low on a fixer-upper
Dave Daggett's eyes lit up when he first saw his lakefront house. The yard was overgrown, plasterboard was missing in places, unfinished wiring dangled here and there, and the roof was mossy. It was ripe for a discount.

Redfin found that bargain sales were 73% more likely to have used "fixer-upper" or similar terms in listings and ads: "People who sell homes before fixing them up are usually more concerned about an easy sale than the best price."

3) Bid aggressively on a discounted property
Many discounted homes have sustained not just one or two but several price reductions.

"Heavily discounted homes are 28% more likely to have already been price-reduced," the Redfin study says, adding that with 56% of the biggest bargains, prices had been dropped at least twice before buyers made a bid.

"Once a seller lowers his asking price, he sends a signal to buyers that he is willing to accept further discounts in negotiations," Redfin speculates.

"Probably the area where we've seen the biggest change is in negotiating with builders," Kelman says. "If they can't liquidate and pay creditors, they're in a crunch."

In order to keep his official prices up, a builder may make expensive concessions by throwing in luxury amenities or reducing a buyer's mortgage terms or down payment.

4) Look for desperate flippers
Redfin found a small (9%) chance that homes purchased within five years would be discounted by more than 10% from the listing price. It could be that some people who are desperate to exit an unmanageable loan are willing to take a bit of a bath.

5) Don't expect much bargaining from banks
Banks don't negotiate as freely as you might imagine when selling foreclosed homes. They also keep a tight rein on prices in short sales, when a seller owes more on the mortgage than the house is selling for.

Don't expect much price flexibility here, Redfin points out. (Banks also tend to move very slowly in such sales.) Redfin found that 9% of the bargains it studied were short sales or houses owned by banks.

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