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Welcome to ValuNation's Valuation Tip of the

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Day, your quick guide to U .S. property valuation.

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I'm your host, Charlie Johnson, with one tip

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to boost your real estate smarts. Today's tip,

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understanding why new construction valuations

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are so tricky. But new homes are hot in 2025,

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with new bills driving inventory growth everywhere.

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But valuing them is tough for buyers and mortgage

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brokers. First, there's limited comps, because

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they're new. New developments often lack recent

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sales nearby. forcing appraisers to use older

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or distant data. Second, upgrades like custom

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flooring, countertops, they can inflate builder

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prices, but not appraisals, which focus on more

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market standards. For example, a $500 ,000 new

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home in Phoenix might appraise for $480 ,000.

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Okay, if comps don't reflect, it's granted countertops.

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Third, market shifts, slower price growth at

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2 .3 % in 2025. That can certainly undervalue

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new homes if demand cools. So buyers, I would

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recommend you ask builders for comps in the same

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community and mortgage pros. Verify if the appraisal

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accounts for any at all upgrades or nearby sales.

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Here's the big takeaways. Buyers, get builder

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comps before bidding. Mortgage pros, ensure the

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appraisals include recent community sales. Always

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ask, the builders always have it. Most importantly,

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work with an AMC or lender that understands the

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new construction market. Not everybody does.

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Head over to www .nationwideamc .com to find

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out more info on our new construction team. Click

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on the solutions tab, find the new construction

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area. Tune in next time for more Value Nation

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insights.