What to do if you want to buy your home

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What to do if you want to buy your home

Apraisals can't keep up with rising home prices as many properties continue to sell above list price and potential homebuyers deals are falling through because of it.

FOX Business' Kathy Menighan Wilson spoke with Grady Trimble, a Chicago-based senior broker associate, about what buyers and sellers can do to maintain foothold in the market.

Wilson said during an appearance on Varney Co. In terms of being a buyer, you really have to come in prepared, Wilson said. And when I say pre-approved that means you re already pre-approved, but you have to know what dollar amount you re willing to pay for a house! Wilson adds that buyers need to know that they are willing to stand a price on a house and if they are going after a home they need to know what they can put down to make it work, given that an appraisal is under the contract price, so leaving the buyer to foot the difference.

The only other option, Wilson says, is to get sellers to come down in price. She asserts that this will not happen in the current market climate, given the increasing demand for homes and low inventory.

For sellers, Wilson says she is actually appraising homes before listing them. She notes that she has done this in the past, but not as often or as often as she does now.

I get a number. I know that I m confident in this number. I ll usually go up a little bit knowing that there will be multiple offers, but that is my credibility. If somebody's going to give me that ammunition, that s going to be good. About 13% of appraisals came in below contract prices in August, almost double the typical rate before the coronavirus pandemic, according to CoreLogic.

In contrast, Goldman Sachs estimates these home prices will rise an additional 16% by 2022 after already doubling 20% year-over-year.