Welcome to ValuNation's Valuation Tip of the
Day, your quick guide to U .S. property valuation.
I'm your host, Charlie Johnson, with one tip
to boost your real estate smarts. Today's tip,
understanding why new construction valuations
are so tricky. But new homes are hot in 2025,
with new bills driving inventory growth everywhere.
But valuing them is tough for buyers and mortgage
brokers. First, there's limited comps, because
they're new. New developments often lack recent
sales nearby. forcing appraisers to use older
or distant data. Second, upgrades like custom
flooring, countertops, they can inflate builder
prices, but not appraisals, which focus on more
market standards. For example, a $500 ,000 new
home in Phoenix might appraise for $480 ,000.
Okay, if comps don't reflect, it's granted countertops.
Third, market shifts, slower price growth at
2 .3 % in 2025. That can certainly undervalue
new homes if demand cools. So buyers, I would
recommend you ask builders for comps in the same
community and mortgage pros. Verify if the appraisal
accounts for any at all upgrades or nearby sales.
Here's the big takeaways. Buyers, get builder
comps before bidding. Mortgage pros, ensure the
appraisals include recent community sales. Always
ask, the builders always have it. Most importantly,
work with an AMC or lender that understands the
new construction market. Not everybody does.
Head over to www .nationwideamc .com to find
out more info on our new construction team. Click
on the solutions tab, find the new construction
area. Tune in next time for more Value Nation
insights.