What is An Appraisal Contingency and How Can it Impact Your Homebuying Journey?

Dusty Rhodes • July 3, 2023

Are you a first-time homebuyer? Or are you a seasoned buyer looking to upgrade or downsize your living space? Regardless of your experience, navigating the housing market can be daunting, especially when it comes to understanding the complex jargon and legalities involved in purchasing a property. One important concept that all homebuyers should be familiar with though is the appraisal contingency. In this guide, we will explore what an appraisal contingency is and how it can impact your homebuying journey.


What is an appraisal contingency?


An appraisal contingency is a clause in a real estate contract that allows the homebuyer to back out of the transaction or renegotiate the terms of the sale if the property appraisal comes in lower than the agreed-upon purchase price.


When a buyer applies for a mortgage to purchase a home, the lender requires an appraisal of the property to determine its fair market value. If the appraisal comes in lower than the agreed-upon purchase price, the buyer may not be able to obtain financing for the full amount, and may have to pay the difference out of pocket or renegotiate the terms of the sale.


With an appraisal contingency in place, the buyer can protect themselves from being obligated to pay more than the fair market value of the property. If the appraisal comes in lower than the purchase price, the buyer has the option to back out of the sale without penalty or renegotiate the terms of the sale to reflect the appraised value.


What is a contingent offer?


A contingent offer is a type of offer made by a buyer to purchase a property that is contingent upon certain conditions being met. These conditions typically relate to the sale of the buyer’s current property, securing financing, passing a home inspection, or the home being appraised reflects fair market value.


For example, a buyer might make a contingent offer on a property they want to purchase, but the offer is contingent upon the sale of their current home. If their home sells within a specified period, the contingent offer becomes a firm offer and the sale proceeds as planned.


How does an appraisal contingency work?


An appraisal contingency states that the sale of the property is contingent upon the property being appraised for a certain value. Here’s how it works:

  1. The buyer and seller agree on a purchase price for the property.
  2. The buyer has a professional appraiser evaluate the property to determine its value. The appraiser considers factors such as the property’s size, location, condition, and recent comparable sales in the area.
  3. If the appraised value of the property is equal to or higher than the purchase price agreed upon by the buyer and seller, then the contingency is satisfied, and the sale can proceed as planned.
  4. If the appraised value of the property is lower than the agreed-upon purchase price, then the buyer has several options, such as:
  • Negotiate with the seller to lower the purchase price to match the appraised value.
  • Request that the seller make repairs or upgrades to the property to increase its value.
  • Walk away from the sale altogether, as the contingency allows them to do so without penalty.


An appraisal contingency is important because it protects the buyer from overpaying for a property that is not worth the purchase price. It also provides a way for the buyer to renegotiate or back out of the sale if the property is appraised at a lower value than expected.


Difference between the appraisal contingency and a finance contingency 


An appraisal contingency and a finance contingency are two common types of contingencies included in a real estate purchase agreement. Here are the key differences between them:

  • Definition: An appraisal contingency is a clause in a real estate purchase agreement that makes the sale of the property contingent upon the property’s appraised value meeting or exceeding a certain amount. A finance contingency, on the other hand, is a clause in a real estate purchase agreement that makes the sale of the property contingent upon the buyer obtaining financing to purchase the property.
  • Purpose: The purpose of an appraisal contingency is to protect the buyer from overpaying for the property. Whereas, the purpose of a finance contingency is to protect the buyer from being contractually obligated to purchase the property if they are unable to secure financing. 
  • Timing: An appraisal contingency is typically included in the initial purchase agreement and is usually resolved during the inspection period. A finance contingency is also typically included in the initial purchase agreement and is resolved once the buyer has secured financing, which may take several weeks.


What happens when the house appraises for less than your offer?


If the house appraises for less than the offer, it means that the appraised value of the property is less than the agreed purchase price. This situation can have several consequences, including:

  • Renegotiation of the purchase price: If the house appraises for less than the offer, the buyer can negotiate with the seller to reduce the purchase price to match the appraised value. If the seller agrees to reduce the price, the buyer can proceed with the purchase.
  • Additional down payment: If the buyer still wants to purchase the property at the agreed price, even though the appraisal value is less, the buyer may need to make a larger down payment to compensate for the shortfall in the appraised value. This is because the lender will only provide a mortgage loan up to the appraised value of the property.
  • Cancelation of the deal: If the seller is not willing to renegotiate the purchase price, and the buyer is unable or unwilling to make a larger down payment, the deal may be canceled. This can be frustrating for both parties, as it means that the transaction cannot proceed as planned.


It’s important to note that a low appraisal is not always a deal breaker. If the buyer and seller are willing to work together to find a mutually acceptable solution, they may still be able to proceed with the purchase.


Appraisal contingency example


Here’s an example of how an appraisal contingency might be used in a real estate transaction:


Bob is interested in buying a house in Las Vegas that is listed for $400,000. He makes an offer of $400,000, and the seller accepts his offer. However, before the sale can go through, the property must be appraised to ensure that the purchase price is fair and reasonable.


If the appraisal comes back and values the property at $380,000, Bob has the option to either:

  1. Walk away from the deal and receive his earnest money deposit back.
  2. Negotiate with the seller to lower the purchase price to match the appraised value.
  3. Agree to pay the original purchase price even though the property was appraised for less.


In this scenario, Bob has the protection of an appraisal contingency, which allows him to back out of the deal or renegotiate the price if the property doesn’t appraise for the agreed-upon amount.


What is an appraisal gap clause?


An appraisal gap clause is a provision in a real estate contract that addresses the difference between the appraised value of the property and the purchase price agreed upon by the buyer and seller.


When a buyer obtains financing to purchase a property, the lender will also require an appraisal to ensure that the property is worth the amount of the loan. In a competitive real estate market, a buyer may offer to pay more than the appraised value of the property in order to secure the purchase. In this case, an appraisal gap clause can be included in the contract to address the potential difference between the purchase price and the appraised value.


The clause may state that if the appraised value comes in lower than the purchase price, the buyer will be responsible for paying the difference out of pocket, up to a certain amount. Alternatively, the clause may allow the buyer to back out of the contract or renegotiate the purchase price if the appraised value is significantly lower than the agreed-upon price.


An appraisal gap clause is designed to protect both the buyer and the seller by providing a clear understanding of how to proceed if the appraised value differs from the purchase price.


When should I use or waive an appraisal contingency?


Here are some factors to consider when deciding whether to use or waive an appraisal contingency:


Use an appraisal contingency when:

  1. You are obtaining financing: If you are obtaining financing to purchase the property, the lender will typically require an appraisal to determine the value of the property. 
  2. The property is unique: If the property is unique and there aren’t many comparable properties to use for the appraisal, it may be wise to include an appraisal contingency to protect yourself in case the appraiser values the property lower than the purchase price.
  3. You are concerned about overpaying: If you are concerned that you may be overpaying for the property, including an appraisal contingency can give you an out if the property doesn’t appraise for the purchase price.


Waive an appraisal contingency when:

  1. You are a cash buyer: If you are a cash buyer and don’t need financing to purchase the property, you may consider waiving the appraisal contingency. In this case, you would be assuming the risk that the property won’t appraise for the purchase price, but if you are comfortable with that risk, waiving the contingency can make your offer more attractive to the seller.
  2. The property is in high demand: If the property is in a highly competitive market and there are multiple offers, waiving the appraisal contingency can make your offer more competitive. However, be aware that if the property doesn’t appraise for the purchase price, you may be responsible for making up the difference in cash.
  3. You are confident in the value: If you have done your own research and are confident that the property is worth the purchase price, you may consider waiving the appraisal contingency. However, be aware that if the property doesn’t appraise for the purchase price, you may again be responsible for making up the difference in cash.


What determines the appraisal value of a home?


The appraisal value of a home is determined by a licensed appraiser who evaluates various factors such as:

  1. Property characteristics: The appraiser considers the square footage of the property, the number of bedrooms and bathrooms, the age of the property, and any unique features such as a pool or fireplace.
  2. Location: The appraiser looks at the location of the property, including the neighborhood, nearby amenities, and school district.
  3. Comparable properties: The appraiser compares the property to recently sold properties in the area that are similar in size, age, and features to determine a fair market value.
  4. Condition of the property: The appraiser evaluates the condition of the property, including any needed repairs or updates.
  5. Market trends: The appraiser considers market trends and economic conditions that may affect the value of the property.
  6. Zoning and use restrictions: The appraiser takes into account any zoning or use restrictions that may affect the value of the property.


All of these factors are taken into consideration by the appraiser to determine the fair market value of the property. The appraisal value is important in determining the maximum amount a lender is willing to finance and helps the buyer and seller negotiate a fair price for the property.


What are other types of real estate contingencies?


There are several other types of real estate contingencies that buyers may include in their purchase contracts to protect themselves. Here are some common types of contingencies:

  1. Financing contingency: This contingency allows the buyer to back out of the transaction if they are unable to secure financing to purchase the property.
  2. Inspection contingency: This contingency allows the buyer to have a professional home inspection conducted to identify any issues with the property. If significant issues are found, the buyer can negotiate repairs or back out of the transaction.
  3. Title contingency: This contingency allows the buyer to back out of the transaction if there are issues with the property’s title, such as liens or disputes over ownership. 
  4. Home sale contingency: This contingency is used when the buyer needs to sell their current home before purchasing the new property. If the buyer is unable to sell their home, they can back out of the transaction.


Including these contingencies in the purchase contract can give the buyer more protection and flexibility during the transaction. However, it’s important to note that including too many contingencies can make the offer less attractive to the seller, so buyers should consider which contingencies are most important to them.


FAQs about appraisal contingencies


Is there an appraisal contingency deadline?

The appraisal contingency deadline is negotiated between the buyer and seller and is typically set at 7 to 10 days after the appraisal is conducted. If the buyer misses the deadline, they may lose their right to terminate the contract based on the appraisal results. It’s important to understand and meet all the deadlines in the contract with the help of a real estate agent or attorney.


How long is an appraisal good for?

Appraisals are typically considered valid for 120 days (4 months) from the date of the report, but the validity period can vary depending on the type of loan and the lender’s requirements. Government-backed loans may have a longer validity period of up to 180 days (6 months). However, market conditions and other factors can affect the value of the property over time, so the appraisal is only a snapshot of the property’s value at a specific point in time.


Can a seller back out if the appraisal is high?

It’s rare for a seller to back out of a transaction because the appraisal value is high. Generally, once the purchase agreement is signed, the seller is legally bound to sell the property to the buyer at the agreed-upon price, regardless of the appraisal value. However, there may be some exceptions depending on the terms of the contract and state laws. Buyers and sellers should review the purchase agreement carefully and consult with a real estate agent or attorney if they have concerns.


Who pays for an appraisal?

In a typical home purchase transaction, the buyer is responsible for paying for the appraisal as part of their closing costs. However, in some cases, the seller may agree to pay for the appraisal. 


How long does an appraisal take?

The timeframe for an appraisal can vary depending on factors such as the size and complexity of the property, the appraiser’s workload, and local market conditions. Generally, the appraisal process can take anywhere from a few days to a few weeks.


How much does an appraisal cost?

The cost of an appraisal varies depending on the location, size, and complexity of the property, but it typically ranges from a few hundred dollars to several hundred dollars.





Source: Redfin

Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

Share

Backyard Privacy Ideas: How to Block Views and Reduce Noise

By Dusty Rhodes • June 30, 2025
Backyard privacy does not mean sacrificing style and comfort. Simple backyard privacy ideas like incorporating tall fences, dense evergreen plantings, and strategic placement of outdoor structures like gazebos can significantly enhance backyard privacy. A well-designed private backyard not only provides a comforting space but can also significantly boost your property’s value and curb appeal, all while offering a greater sense of security. Having a private backyard space is a dream for many homeowners. It’s where you can unwind, entertain, or simply enjoy nature without feeling exposed. In this Redfin article, we’ll explore a variety of effective backyard privacy ideas that can help you create your perfect personal space, no matter if you’re in Boulder, CO , or Fort Worth, TX. 1. Use plants to create natural privacy People often associate backyard privacy ideas with unattractive features; however, one of the most natural and beautiful ways to create privacy is with plants. Think beyond a simple fence and consider a living screen. Not only do plants help with making your garden beautiful, but actively shelter your space from unwanted eyes. Expert tip from The Mulch Mound : A great private outdoor space starts with well-designed mulch beds—they’re not just practical, they’re the foundation of a polished, peaceful yard. Deep, curved mulch beds lined with clean edging help define zones and guide the eye, making your space feel both organized and expansive. Layering tall shrubs and ornamental grasses within those beds adds natural screening without sacrificing style. For extra privacy, tuck seating areas behind mulch-lined plantings or use trellises with vines to soften fencing. Thoughtful mulch use keeps everything low-maintenance while tying together the look and function of your outdoor retreat. Additional suggestions and ideas for creating a natural privacy wall include purchasing the following: Tall shrubs and trees: Fast-growing evergreens like Leyland cypress or arborvitae can quickly create a dense visual barrier. Deciduous trees like maples or oaks offer seasonal privacy and shade. Vines on a trellis: Climbing vines like wisteria, trumpet vine, or clematis can rapidly cover a fence, trellis, or pergola, adding a lush, green wall to your space. Bamboo: Certain types of bamboo, especially clumping varieties, can grow tall and dense, offering a tropical and effective privacy solution. Just be sure to research the best types for your climate and consider root barriers for running varieties. 2. Add outdoor structures for built-in seclusion Outdoor structures offer more than just shelter; they can enhance privacy in your outdoor space. These structures provide a framework upon which you can build a more secluded environment. By thoughtfully integrating them into your backyard design, you can create distinct zones that feel intimate and protected from outside views. Pergolas, gazebos, and even shed walls offer more than just shelter; they can be excellent privacy enhancers for your outdoor space. Expert tip from Tommy Pollina Landscape : “A great private space doesn’t just block views — it feels calm, tucked away, and thoughtfully put together. We like to blend privacy fencing or masonry walls with natural screening like evergreens, tall ornamental grasses, or layered shrubs. This creates a barrier without making the space feel boxed in. Features like trellises, pergolas, or plant-covered arbors can give you cozy, secluded spots within the yard that still feel open and inviting.” Consider these structural privacy boosters: Pergolas with curtains: Add flowing outdoor curtains to create a flexible, intimate retreat. Screened-in gazebos: These create a private outdoor room perfect for dining or lounging, without worry about bugs or prying eyes. 3. Try stylish and strategic privacy screens Standalone screens crafted from materials like wood, metal, or even repurposed items are perfect for blocking specific sight lines. Beyond their functional benefits, these screens can also serve as stylish additions to your yard’s aesthetic. Add character with planters or shelving Consider screens with integrated planters for a living wall effect, or those with built-in shelving to display outdoor decor and lighting, further enhancing their aesthetic and utility. The material choice itself can dictate the style. Aluminum offers a modern edge, while reclaimed wood provides a rustic look. Use strategic placement to define outdoor zones When integrating privacy screens, think about their strategic placement to maximize both privacy and visual appeal. Instead of just blocking an undesirable view, consider how a screen can define an outdoor “room” or create a captivating backdrop for a seating area or garden bed. For instance, a series of smaller, complementary screens can be used to create a meandering pathway, subtly guiding the eye while maintaining seclusion. You can also use them to visually separate different zones within your yard, such as a dining area from a lounging space, giving each its own distinct ambiance. Go portable for adaptable privacy Portable decorative screens offer incredible flexibility. These can be moved around as needed to provide privacy for impromptu gatherings, block sun glare, or simply refresh the look of your patio. Imagine screens with wheels for easy repositioning, or lightweight foldable designs that can be stored away when not in use. The key is to see these screens not just as barriers, but as dynamic design elements that can transform your backyard into a personalized sanctuary. 4. Choose fencing that adds both beauty and function Fences and walls are classic backyard privacy ideas that don’t have to be boring. Increasing your backyard privacy can be easily achieved with a tall fence, provided your budget and space permit. With numerous styles and heights available, you’re sure to find one that works for you and your home. Tip from Veronica Nguyen of Pentagon Fencing : A great private outdoor space seamlessly blends privacy, beauty, and functionality.” She continues suggesting, “When it comes to fencing solutions, I recommend tall, solid options like Colorbond Fences or Modular Walls for both durability and visual appeal. Modular walls are an outstanding choice. Not only do they offer a sleek, modern appearance, but they also provide excellent acoustic insulation, helping to block out street noise and enhance the feeling of seclusion. Modular walls and Colourbond fences are also highly durable, low maintenance, and come with a variety of stunning colors to suit any home style. Pairing both Colourbond fences or Modular Walls with greenery or vertical gardens softens the structure, creates a resort-like atmosphere, and adds a natural buffer. Strategic layout is key, so using screens or pergolas to section off seating or BBQ areas for a more intimate feel is an ideal combination. Additionally, integrating up/down LED lights will cast a soft glow along the surface of modular walls or slat fences, creating a sleek, modern look while highlighting textures and finishes. These are perfect for evening ambience and curb appeal. Other stylish fencing options include: Wood fences: Stain or paint them to match your home, or add lattice or custom cutouts for personality. Gabion walls: Wire cages filled with rock or brick offer a modern, industrial look and help reduce sound. Corrugated metal panels: Durable and edgy, these are low-maintenance and make a striking statement. Combine fences with greenery: Add vines, planters, or vertical gardens to soften the structure and create a resort-like vibe. Strategic lighting can also highlight textures and boost nighttime curb appeal. 5. Incorporate elements to reduce noise Achieving sound privacy in your backyard is just as important as visual privacy for creating a private retreat. Unwanted noise from neighbors, traffic, or urban environments can disrupt your peace and make it difficult to relax or entertain outdoors. While physical barriers like fences can block some sound, they often aren’t enough to create a quiet atmosphere. Strategically incorporating elements that absorb, block, or mask sound, you can transform your backyard. Use white noise: One of the most effective ways to enhance sound privacy is by introducing white noise. The soothing sound of water features can be incredibly effective at masking undesirable external noises. Fountains, with their gentle trickling sounds, can create a calming ambiance and help to muffle distant sounds. For more substantial noise reduction, consider larger water features like waterfalls or bubbling rock formations, which produce a greater volume of white noise. Joe Sexton from Inch Calculator suggests that incorporating water features can elevate the ambiance by masking noise and creating a relaxing retreat. Joe writes, “Elevate the ambiance by incorporating water features or outdoor speakers to mask noise and create a relaxing retreat.” Layer in natural sound barriers: Another approach to improving sound privacy involves utilizing dense plantings and thoughtful landscaping. While plants primarily offer visual screening, thick hedges, layered shrubs, and tall ornamental grasses can also help to absorb and diffuse sound waves, creating a quieter environment. Combining these natural elements with other structures can further enhance their sound-dampening capabilities. Veronica Nguyen of Pentagon Fencing recommends pairing fences, like Colorbond Fences or Modular Walls, with greenery or vertical gardens, noting that this combination softens the structure and adds a natural buffer. Additionally, elements like gabion walls, which are made from wire cages filled with rocks or bricks, are excellent at providing both visual privacy and sound dampening due to their dense material. Reposition furniture and structures: Finally, consider the strategic placement of outdoor structures and furniture to help create a more sound-protected area. Modular walls, for instance, are highlighted for their excellent acoustic insulation, which helps to block out street noise and enhance the feeling of seclusion. Draping a pergola with outdoor curtains can offer flexible privacy, allowing you to close them for an intimate atmosphere, which can also help to muffle sounds. Similarly, a screened-in gazebo creates a private outdoor room ideal for dining or lounging without concerns about external noise. By layering various sound-dampening techniques, you can effectively minimize disruptions and maximize the peace and quiet in your backyard. A final note on backyard privacy ideas As we’ve explored, creating a private backyard doesn’t mean sacrificing style or comfort. By thoughtfully integrating features like tall fences, dense evergreen plantings, and strategically placed outdoor structures, you can enhance your backyard’s privacy. Well-thought-out backyard privacy ideas provide a comforting space for relaxation and enjoyment. A home is meant to be your sacred area, and with these ideas, you’re on your way to creating the peaceful outdoor space you’ve always dreamed of.

How to Make Your Home a Happier Place

By Dusty Rhodes • June 16, 2025
Create a haven that makes you feel good every time you walk through the front door We spend so much time in our homes that it’s important that they bring us joy. Follow these inspiring ideas to spread a little happiness in your home. 1. Let In the Sunshine Nothing will lift your mood like sunlight beaming in through your windows. To make sure that your home gets its full quota of rays, keep the glass clean and free from streaks and finger marks. To clean the outsides, it’s often best to call in a professional, but the insides are easy to do yourself. Use a dry brush to sweep away dust from the frames, then sponge the glass with soapy water. Finally, remove the water by making S shapes on the window with a squeegee. Windows need to be cleaned at least twice a year. Don’t think yours are dirty? Give them a clean and you’ll immediately notice the difference. 2. Promote a Warm Welcome Ensure that you feel good every time you come home by creating an inviting hallway. You’ll need good storage for your outdoor paraphernalia so that the entrance is tidy as you enter. Include hooks for coats, a shoe rack, and baskets for scarves, gloves and umbrellas. Freshen up the area by painting the walls and door. The key is to choose a color scheme that makes you happy. Add mood-lifting extras such as flowers, a mirror or a beautifully scented reed diffuser. 3. Make Your Bed A good day needs a cheery start, so one of the most positive things you can do at home is make your bed. By tidying your sleeping area when you wake up, you’ll begin your day on an upbeat note. This simple act will make you feel organized and ready for action. Then later on, when you head sleepily up to bed, you’ll find a restful space to relax. 4. Get a Good Night’s Sleep To make sure that your sleep is even more restful, it’s best to be in a completely dark room. When it’s dark, our bodies produce more of the hormone melatonin, which makes us feel tired. Light, in contrast, gives powerful cues to the brain that it’s time to wake up. To keep street lamps or early-morning sunlight from poking in, put up blinds or curtains with a blackout lining. Similarly, keep a low-wattage lamp on your bedside table to help you wind down before you go to sleep. 5. Bring In Fresh Flowers A vase of beautiful flowers instantly cheers up a room and lifts a person’s mood. By putting flowers on your kitchen table, you’ll connect with nature every time you come into the room. Your choice of flowers can be anything from a huge mixed bouquet to a simple seasonal sprig. Start in January with early daffodils and hyacinths, then keep checking to see what’s around throughout the year. If you have outside space, try growing flowers that you can cut. 6. Fill It With Happy Memories Display things around your home that remind you of friends, family and places you’ve visited. Put travel souvenirs where you can see them to remind you of experiences and perhaps to prompt you to make new plans. We all have hundreds of photos on our digital equipment nowadays, but we often forget to print them. Set an evening aside to sort through them, get a selection printed and plan a creative way to display them. 7. Share It With Animals Want to de-stress after a long day? How about curling up on the sofa and stroking your pet? Studies have shown that the simple act of cuddling an animal releases the hormone oxytocin, which makes us feel calm. The benefits don’t stop there, though. By keeping a pet at home, you’ll have the opportunity to form a relationship with another creature, and hopefully you’ll be rewarded by lots of fun and cuddles. 8. Do Those Quick Fixes Those household nuisances, such as leaky faucets and broken door handles, shouldn’t be ignored. Every time you come across something that needs fixing, you could get irritated. So rather than putting off these annoying jobs, face them head-on. A little effort will result in a well-run home with no tricky hindrances, and you’ll get a welcome feeling of accomplishment to boot. 9. Make a Space for You In a busy household, it’s important to find a place to gather your thoughts and spend a few minutes by yourself. Being alone for a while will allow you to recharge and get ready to face the world again. If you can’t grab a whole room for yourself, a cozy corner will do just fine. If you have a hobby, such as crocheting or painting, create a designated space for it. Devise storage that will keep your equipment at hand so that you can dip in and out whenever you have spare time. 10. Connect With Your Neighbors What really makes most of us happy are our relationships with other people. By making friends with your neighbors, you’ll be able to nurture those relationships whenever you’re at home. Make the effort to say hello whenever you see your neighbors and offer to water their plants while they’re away. Before you know it, you’ll be well on your way to turning your street into a real community. 11. Make Healthy Eating Easy Encourage a positive lifestyle by keeping healthy food within reach. The most obvious way is to put a bowl of fruit on the table, but there are other things you can do. Avoid last-minute dinner decisions by displaying a meal planner in the kitchen, with nourishing options for the whole week. If you have children, get them involved by asking them to contribute their ideas. Think of ways you can make it easy to choose a wholesome snack. Keep nuts and granola bars in tempting glass jars. If you’ve invested in a juicer or yogurt maker, don’t let it languish in the cupboard. Make room for it on the counter so that you’ll be more inclined to use it.

Newly Built Homes May Be Less Expensive Than You Think

By Dusty Rhodes • June 9, 2025
Do you think a brand-new home means a bigger price tag? Think again. Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than the median price for existing homes (ones that have already been lived in): You read that right. That brand new, never-been-lived-in house may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off a new build because you assumed they’d be financially out of reach, here’s what you should know. You could be missing out on some of the best options in today’s housing market. Why Are Newly Built Homes Less Expensive Right Now? 1. Builders Are Building Smaller Homes Builders know that buyers are struggling with affordability today. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census , the average size of a newly built single-family home has dropped considerably over the past few years. And as size goes down, the price often does too. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them. 2. Builders Are Offering Price Cuts and Incentives In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5% . That’s because they want to be sure they’re selling the inventory they have before they build more. On top of that, 61% of builders also offered sales incentives – like helping with closing costs or buying down your mortgage rate. These are all ways builders are making their homes more affordable, so these homes sell in today’s market. Your Next Step? Ask Your Agent What’s Available Near You If you’re trying to buy a home right now, be sure to talk to your agent to find out what builders are doing in and around your area. They can find new home communities, as well as builders who are offering incentives or discounts, and hidden gems you might not uncover on your own. Plus, buying a newly built home often means there are different steps in the process than if you purchase a home that’s been lived in before. That’s why it’s so important to have your own agent who can explain the fine print. You want a pro in your corner to advocate for you, negotiate on your behalf, and make sure your best interests come first. Bottom Line You could get a home that’s brand new, with modern features, at a price that’s even lower than some older homes. Talk with a local real estate agent about what you’re looking for and see if a newly built home is the right fit for you.
More Posts