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.