10/16/2025
Buying a Home in a Declining Market: My Journey as a Veteran and Realtor
The housing market in 2025 has been anything but steady. Prices are falling in many areas, interest rates remain stubbornly high, and both buyers and sellers are facing tough choices. As a realtor, I’ve helped clients navigate market cycles before but this year, I found myself on the other side of the table. My wife and I were building a new home just south of Houston, and the process became a real time lesson in what it takes to purchase in a declining market.
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The Dream
When we signed our contract in early 2025, the excitement was real. This wasn’t just an investment, it was the home where we envisioned our family’s future. The builder sweetened the deal with hefty incentives: 50% off the lot, design, and upgrades if we used their preferred lender. On paper, it seemed like the smartest move.
But the market was already shifting under our feet. By summer, the same trend I’d been advising clients about, declining home values, hit our build head on.
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Early Setbacks with the Build
Even before the appraisal stage, cracks began to show in the process. Our first construction manager became a source of constant frustration. Communication was inconsistent at best, updates were missed, questions went unanswered, and when we did get responses, they often created more confusion than clarity.
Worse, mistakes started piling up. Countertops we hadn’t chosen were ordered. Features we never asked for suddenly appeared in the plans. Meanwhile, things we had specifically selected were overlooked. Every misstep added delays and raised questions about whether we were being heard at all.
For any buyer, these issues are frustrating. But for a veteran using a VA loan and working on a strict timeline, they’re more than just inconveniences, they can derail the entire path to closing.
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The Appraisal Shock
As a 100% disabled veteran, I was using my VA loan. For veterans, the VA appraisal is more than a formality, it’s the safeguard against overpaying for a home. When the appraisal came back, the number stopped us in our tracks: $73,000 under the builder’s price.
Suddenly, the excitement of closing turned into a wave of stress and uncertainty. Would the deal fall apart? Would we have to walk away? More importantly, would we even have a place to live if things didn’t move quickly?
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Behind the Scenes
This is where the conflict really began. The builder’s lender, unhappy with the appraisal, started pushing back. They quietly submitted additional comparables to justify their loan amount, a move that looked suspiciously like a Reconsideration of Value (ROV). The problem? We hadn’t been informed, even though VA guidelines require transparency.
Emails, phone calls, and tense back-and-forths followed. I requested full copies of the appraisal and the Notice of Value (NOV) documents veterans are entitled to under VA Pamphlet 26-7. I pressed for confirmation: had an ROV been filed, and if so, when?
What struck me most was how different the process feels as a buyer compared to a realtor. Knowledge gave me leverage, but as a husband and future homeowner, the delays were exhausting.
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The Power Shift
Here’s the silver lining: in a declining market, an appraisal below the contract price doesn’t just stall the deal, it shifts the power back to the buyer.
In our case, the builder quickly realized they had a choice: either lower the contract price to match the VA appraisal or risk losing the sale completely. With VA loans, the appraisal sticks with the property for 120 days. That means if we walked away, every other veteran buyer would face the exact same appraisal value. Not only would the builder lose us as buyers, but they would also be forced to market the home under the shadow of that lower appraised value for months.
We were also well within our rights to walk away from the contract. The VA loan is structured to protect veterans from overpaying, and the appraisal gave us the legal and financial footing to say “no deal” if the numbers didn’t work.
That leverage put the decision squarely on the builder’s shoulders. For us, the appraisal wasn’t a setback, it became a powerful tool to negotiate a fair price in a market that was already heading downward.
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Finally, Clear to Close
After months of setbacks, miscommunications, and financial tug of war, the moment we had been waiting for finally arrived: clear to close.
It felt like a weight lifting off our shoulders. The stress of the appraisal, the frustration with the wrong orders, and the endless back and forth with the lender, all of it faded the second we got the news.
Joy came rushing back into the process. The dream we had set out on months earlier was back on track, and this time it felt even sweeter because of everything we had pushed through to get here.
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Lessons Learned
Looking back, this process has been equal parts frustrating and empowering. Here’s what I’d share with other buyers, especially veterans:
• Know your rights. The VA appraisal is there to protect you. Insist on getting the full report and NOV.
• Understand the 120 day rule. A VA appraisal sticks with the property for 120 days. If you walk away, that value follows the house, which forces the builder to face the reality of the market whether they like it or not.
• Use your walk away power. Veterans are never forced to buy above appraised value. If the builder won’t adjust, you’re within your rights to cancel the contract without penalty. That alone gives you leverage.
• Expect resistance. Builders and lenders may push back, especially in a declining market. Don’t assume their word is final.
• Document everything. Emails, requests, confirmations. Having a paper trail matters when deadlines and contracts are on the line.
• Stay engaged with the build. Don’t assume the contractor has it right! Double check selections, follow up, and speak up when something looks wrong.
• Celebrate the wins. After all the hurdles, getting clear to close deserves to be a moment of joy.
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Closing Thoughts
Buying a home in a declining market is not for the faint of heart. It requires persistence, patience, and a willingness to stand your ground. For my wife and I, this journey has been more than just about a house, it’s been about navigating uncertainty with resilience.
As a veteran, I see this as another mission: protecting my family, securing a fair deal, and turning a challenge into an opportunity. The story isn’t over yet, but one thing is clear, declining markets don’t just test buyers. They reveal who’s ready to fight for the home and future they deserve.
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A Note for Fellow Veterans and Homebuyers
If you’re a veteran, a first time buyer, or someone simply trying to make sense of this declining market, know this: you don’t have to navigate it alone. As both a realtor and a veteran myself, I’ve lived through the challenges on both sides of the process.
If you want guidance, someone who understands VA loans, builder negotiations, and the realities of today’s housing market, I’d be honored to help.
Your home should be your safe place, not your stress point. Let’s make sure you get there the right way.
Eric Winston, #677653
Veteran and Texas Realtor
The Sears Group
702.661.2340
“Go Army”
