This is the time of year when home owners who want to sell start doing their homework.
The first thing we have to determine is the value of the home. I don't set the price the market does and I determine the value in the standard way which is by comparing the home to comparable homes in the area that have sold.
I like to use comparable homes that are within a mile of the home in question and that have sold in the last twelve months. Even though I use numbers and data to come up with a price it really isn't a science, it is more of an art.
Sellers want to know when the best time to sell is. I remember last winter the when home owners wanted to wait until spring I predicted prices would be lower in the spring. I was right.
In 2007 some sellers wanted to wait until next year. Prices went down from 2007 to 2008 and then went down again last year. I don't think they will go down again this year, but I don't think they will go up either. The market seems to have stabilized a bit.
Homeowners are asking when will prices go up? This is just a guess, and more of an art than a science but I will go out on a limb and say that there will be some upward movement in 2012.
In 2010 the best time to put a home on the market might be right now. Sure the weather is cold and the buyers are still in hibernation but they are starting to search. They want to take advantage of the interest rates which are now at an all time low and they wouldn't mind getting the $8000 dollar home buyers tax credit or if they are what we call move up buyers they wouldn't mind getting the $6500 dollars tax credit.
Looking into the crystal ball that I have next to my computer tells me that the best times to sell might be now or 2012. In 2012 home prices will look more like they did in 2007 or 2008.
For buyers I think this is the time to buy if you can afford it and your financial house is in order, and you can stay put for a decade or so. The downside is the inventory of homes on the market is much lower than it has been in recent years which means there are fewer choices. The upside is the low interest rates, the tax credits and the possibility that I am right and that prices will go up in 2012.
