12 Things to Know Before Buying New Construction (And Why You Need Your Own Agent)

 Thinking about buying new construction? Here are 12 things most buyers don’t realize—until it’s too late. 

🏡 Episode Summary

Buying a brand-new home sounds simple—but new construction comes with a completely different set of rules, costs, and risks that most buyers don’t fully understand upfront.

In this episode, Joe and Makayla break down the 12 most important things to know before buying new construction—from model home pricing and upgrades to builder contracts, timelines, and hidden costs. They also explain why relying on the builder’s agent can leave buyers unprotected—and how having your own representation changes everything.

👉 Want the full breakdown? We’ve outlined all 12 points in detail here:
12 Things to Know Before Buying New Construction (And Why Representation Matters)

If you’re considering building or buying new construction in the Portland real estate market, this episode gives you a clear, practical framework to avoid mistakes, protect your investment, and make smarter decisions from day one.

⏱️ Episode Highlights

[00:01:04] – Why the Builder’s Agent Doesn’t Represent You
Joe and Makayla explain the biggest misconception in new construction—and why buyers need their own advocate.

[00:07:17] – The First Visit Mistake That Can Cost You Representation
How signing in at a model home without your agent can eliminate your ability to have representation covered by the builder.

[00:08:45] – Model Homes vs Reality: Why Pricing Is Misleading
What buyers see in model homes is often far from the base price—and why that matters for budgeting.

[00:10:39] – Upgrades That Quietly Add Tens of Thousands
From cabinets to electrical, learn how upgrades stack up quickly—and which ones actually matter.

[00:12:15] – Lot Premiums: When Paying More Doesn’t Pay Off
Corner lots, views, and privacy sound great—but are they worth the cost?

[00:13:40] – Builder Contracts: What You’re Really Agreeing To
Why builder contracts favor the builder—and what buyers often overlook before signing.

[00:16:41] – Why New Homes Still Need Inspections
Real examples of issues in brand-new homes—and why skipping inspection is a risk.

[00:19:08] – Timeline Delays and Communication Gaps Explained
What happens after you go under contract—and why buyers often feel left in the dark.

👥 Hosts

Joe Reitzug and Makayla Mast are Portland-based real estate experts with the LivPortland Team at Cascade Hasson Sotheby’s International Realty. They bring real-world experience, honest insights, and straightforward guidance to help buyers and sellers navigate today’s market with confidence—especially when it comes to complex purchases like new construction.

Thinking about buying new construction—or want help navigating your options?

Visit LivPortland.com to explore homes, access resources, and connect with the team.
Have questions? Reach out anytime—we’re here to help.

Thank you for listening to this episode. Stay up to date on the latest trends and insights by subscribing to our podcast and following us on social media.

For more information about buying or selling in the Portland Metro real estate market, please visit www.LivPortland.com or contact us directly.

We appreciate your feedback, so please leave a review and let us know what topics you would like to hear more about.

Transcript

00:00:08:20 - 00:00:24:04
Joe Reitzug
Welcome to Off the Record talking real estate with Joe and Makayla. If you're interested in the Portland, Oregon real estate market and want the unvarnished inside scoop, you've come to the right place. Thanks for giving us a listen.

00:00:24:06 - 00:00:29:09
Joe Reitzug
Okay. Welcome, everyone. Thanks for joining the show. Yes. Hi, Makayla.

00:00:29:11 - 00:00:30:15
Makayla Mast
Hi, Joe.

00:00:30:17 - 00:00:31:07
Joe Reitzug
How are you?

00:00:31:07 - 00:00:35:11
Makayla Mast
I'm doing well. How about yourself? I'm good. Yeah, good. I'm excited for this episode.

00:00:35:12 - 00:00:40:18
Joe Reitzug
I am too. This is a good one. And they're all good. Of course.

00:00:40:20 - 00:00:41:20
Makayla Mast
We have to say that. 

00:00:41:21 - 00:01:04:09
Joe Reitzug
Sure. But today we are going to be talking about what you need to know when you're thinking about buying a new construction home and why using a real estate broker matters. And we on the show, we try not to, you know, we let you guys make your own mind up about use a broker. Don't use a broker. Which brokers you want to use all that type of stuff.

00:01:04:15 - 00:01:26:05
Joe Reitzug
But in this episode, we are strongly recommending that you use a professional real estate broker to represent you when you buy a new construction home, mainly because a lot of people think, oh, I'm just going to have the builders representative represent me and it'll be easier that way. Is it Makayla?

00:01:26:06 - 00:01:38:04
Makayla Mast
No, no, we're here to tell you it's not. And not again for our own selfish reasons, but because it's that important to have your own representation, especially with new construction.

00:01:38:06 - 00:02:02:21
Joe Reitzug
Yeah. So the builders representation representative represents the builder and the builders at best interest. And that doesn't always coincide with what's best for you as a buyer of a new construction home. And there are so many things to consider and to think about. And so we're going to kind of run through the things that you need to be aware of.

00:02:02:22 - 00:02:15:17
Joe Reitzug
So the secrets to buying a new construction home and the things you need to think about, and also we're going to throw in after each point. Why it matters to have a broker representing you to help you with that purchase, right?

00:02:15:18 - 00:02:19:20
Makayla Mast
Yes, absolutely. Excited? Okay. But before we get started.

00:02:19:21 - 00:02:21:06
Joe Reitzug
Before we get started.

00:02:21:07 - 00:02:30:23
Makayla Mast
We like to do an off the record moment.

00:02:31:00 - 00:02:43:11
Makayla Mast
If this is your first time listening, this is one of our favorite segments. We start by sharing something with you and off the record moment that we've come up with over the last week. It can be confession.

00:02:43:12 - 00:02:44:07
Joe Reitzug
A gripe.

00:02:44:08 - 00:02:45:13
Makayla Mast
A hot take.

00:02:45:15 - 00:02:50:00
Joe Reitzug
Hot take. And then at the end of the show, we tell you what we're loving.

00:02:50:01 - 00:02:50:13
Makayla Mast
Yeah.

00:02:50:14 - 00:02:52:02
Joe Reitzug
So we go. We go full circle.

00:02:52:03 - 00:02:54:00
Makayla Mast
Yeah, right. Leave you feeling happy?

00:02:54:01 - 00:02:57:06
Joe Reitzug
Yeah. Yeah, exactly. So I'm going to I'm going to let you start.

00:02:57:07 - 00:03:14:17
Makayla Mast
Okay. My off the record moment this week is a hot take. Again food related I don't know why these are jumping out at me. I just it's probably because I went to Costco yesterday. Nice. Just say no to the farm raised salmon.

00:03:14:19 - 00:03:16:16
Joe Reitzug
I always say no to farmers.

00:03:16:17 - 00:03:26:07
Makayla Mast
Just do it. I know, but I see people grab it and put it in their carts, and they just want to show them the video of the documentary where the fleas are like eating the salmon in the farm.

00:03:26:08 - 00:03:29:05
Joe Reitzug
Well, when you have to add color to an animal.

00:03:29:06 - 00:03:30:15
Makayla Mast
Yeah, it's a.

00:03:30:15 - 00:03:31:05
Joe Reitzug
Red flag.

00:03:31:05 - 00:03:41:16
Makayla Mast
Red flag. Right? Completely. Yeah. So maybe we'll even post one of those videos from the documentary, because that's all I can think about. It makes me so nauseous.

00:03:41:17 - 00:03:49:20
Joe Reitzug
I have a question for you. If it says Atlantic salmon, doesn't that mean that it's farm raised? Because I don't think the Atlantic has salmon.

00:03:49:22 - 00:03:51:20
Makayla Mast
That's a really good question.

00:03:51:22 - 00:03:54:02
Joe Reitzug
Yeah, we should Google that and put it in the show notes.

00:03:54:03 - 00:03:55:01
Makayla Mast
We should.

00:03:55:03 - 00:03:58:17
Joe Reitzug
I think that's accurate. I don't know that for sure.

00:03:58:19 - 00:04:02:05
Makayla Mast
I mean, that would make sense. Simon's very cold water.

00:04:02:07 - 00:04:05:17
Joe Reitzug
Yeah. There's no salmon in the Atlantic. Oh, so if it.

00:04:05:17 - 00:04:05:23
Makayla Mast
Says.

00:04:06:04 - 00:04:08:14
Joe Reitzug
Another salmon, it's farm raised.

00:04:08:15 - 00:04:10:19
Makayla Mast
Another salmon to avoid.

00:04:10:21 - 00:04:11:09
Joe Reitzug
Yeah.

00:04:11:10 - 00:04:14:11
Makayla Mast
So that's my hot take. Just don't just skip it.

00:04:14:11 - 00:04:21:16
Joe Reitzug
That's a good one. And I do love salmon. I bought some salmon yesterday. And tell you what people. Air fryer game changer.

00:04:21:17 - 00:04:24:13
Makayla Mast
That is your trick. That's so yummy.

00:04:24:15 - 00:04:30:03
Joe Reitzug
So my off the record moment is. Well, it's a great Makayla and I.

00:04:30:05 - 00:04:30:19
Makayla Mast
Love it.

00:04:30:20 - 00:04:36:17
Joe Reitzug
Shocking. I do not usually have a gripe because you know. Very grateful very thankful person.

00:04:36:18 - 00:04:38:16
Makayla Mast
And I'm always griping.

00:04:38:18 - 00:04:51:17
Joe Reitzug
I'm not going to say anything. Sure. But my gripe is with real estate signpost companies. Why does it take 2 to 3 weeks to get a signpost installed?

00:04:51:22 - 00:04:53:00
Makayla Mast
Oh. For real?

00:04:53:01 - 00:04:53:17
Joe Reitzug
Why?

00:04:53:23 - 00:05:01:20
Makayla Mast
Because they laid everybody off, and now they have one guy running around town. Yeah, that's my guess.

00:05:01:23 - 00:05:12:23
Joe Reitzug
Yeah, I'm just so fed up with that. I mean, half the time we are, you know, having people call us and say, I got to get this home on the market in the next couple of weeks.

00:05:13:00 - 00:05:14:00
Makayla Mast
Or days.

00:05:14:02 - 00:05:19:06
Joe Reitzug
Or days sometimes. Yeah. And it's like, okay, we're not going to have a sign for three weeks.

00:05:19:07 - 00:05:22:20
Makayla Mast
Right. And how much does that suck. Yeah. For the seller.

00:05:22:22 - 00:05:32:05
Joe Reitzug
So that's my gripe is you know, and I know they need to go do a locate so they don't, you know, put the sign into a gas line or something like that.

00:05:32:07 - 00:05:33:08
Makayla Mast
Spare me. Yeah.

00:05:33:10 - 00:05:34:05
Joe Reitzug
Three weeks.

00:05:34:06 - 00:05:39:08
Makayla Mast
Chop, chop. Yeah, that's absolutely ridiculous. Also, I'll add a gripe to that gripe.

00:05:39:09 - 00:05:41:15
Joe Reitzug
Oh, double griping down. Here we go.

00:05:41:16 - 00:05:56:22
Makayla Mast
Don't test me with a good gripe. Yeah. They charge travel fees to North Plains. Like, North Plains is barely a stone's throw from Hillsborough. Okay, it's like five extra minutes on the highway. Yeah, that's messed up.

00:05:56:23 - 00:06:00:13
Joe Reitzug
Don't get me started about trying to get a sign put up at the beach, either.

00:06:00:14 - 00:06:02:02
Makayla Mast
Oh, yeah. No. Forget it.

00:06:02:03 - 00:06:02:13
Joe Reitzug
No one.

00:06:02:13 - 00:06:04:00
Makayla Mast
Does that have to do it yourself.

00:06:04:00 - 00:06:09:21
Joe Reitzug
Seriously, all the brokers out there doing it themselves. Yeah. The revolution starts here. No more.

00:06:09:23 - 00:06:11:13
Makayla Mast
We should start a signpost company.

00:06:11:14 - 00:06:13:11
Joe Reitzug
I am a thought about that. Years ago.

00:06:13:12 - 00:06:14:01
Makayla Mast
Really?

00:06:14:02 - 00:06:14:11
Joe Reitzug
Oh, yeah.

00:06:14:12 - 00:06:15:09
Makayla Mast
We should table that.

00:06:15:10 - 00:06:17:03
Joe Reitzug
I did the numbers.

00:06:17:05 - 00:06:19:20
Makayla Mast
Yeah. No, no. Yeah, I know.

00:06:19:22 - 00:06:28:11
Joe Reitzug
No margin. And you really got those guys work hard. So signpost people, you know, take it with a grain of salt. I'm mad right now, but I'm not mad at you.

00:06:28:14 - 00:06:34:23
Makayla Mast
Also, can you imagine this? Roshan Boeing for every listing like you do. This time I did the last one.

00:06:35:00 - 00:06:38:23
Joe Reitzug
Yeah. Remember when I poured concrete for that commercial sign for our development?

00:06:39:00 - 00:06:40:08
Makayla Mast
That was a sight.

00:06:40:10 - 00:06:47:01
Joe Reitzug
Yeah, that was sweet. I went by there recently. The signs gone, the concrete still there.

00:06:47:03 - 00:06:49:07
Makayla Mast
Love it. Good job, good job.

00:06:49:09 - 00:07:17:13
Joe Reitzug
All right. So we are talking today about the secrets that you need to know when you're thinking about buying a new construction home and why having a broker matters. Something we don't usually do. But we feel strongly enough about this where we're like, have some representation, people. And here's the other thing. Nine times out of ten, the builder is going to pay for us to represent you and your best interest.

00:07:17:14 - 00:07:20:01
Makayla Mast
Not any extra money out of your pocket.

00:07:20:03 - 00:07:25:09
Joe Reitzug
And I want to lead with this. Makayla I'm going gripe. I'm going triple gripe.

00:07:25:10 - 00:07:26:05
Makayla Mast
Okay. Love it.

00:07:26:06 - 00:07:26:15
Joe Reitzug
Yeah.

00:07:26:16 - 00:07:28:00
Makayla Mast
Go get a drum roll.

00:07:28:02 - 00:07:41:01
Joe Reitzug
If you go, if you just decide, I might go see what these new homes look like. And you go out there and you sign in. They will not pay for your representation after that. Right.

00:07:41:02 - 00:07:42:10
Makayla Mast
There's a little line.

00:07:42:11 - 00:08:12:17
Joe Reitzug
Yeah. Must have your your broker with you at initial visit to the site. So FYI, and not all companies are like that. Not all builders are like that, but there are too many that do to not mention this. If you're thinking about buying a new construction home, talk to your lender first and then talk to your real estate broker second, and get a time to go out to the site that you're interested with them, or as a backup.

00:08:12:17 - 00:08:29:17
Joe Reitzug
When you go to the site the development, tell them that you have representation, right. And either give them a name or say, no, I'm not going to sign your book. Right. Right. Otherwise, you're basically giving up them, paying for your representation, which. How is that fair?

00:08:29:18 - 00:08:34:11
Makayla Mast
It's not. It's a crazy loophole that I can't believe they continue to pull off.

00:08:34:13 - 00:08:45:21
Joe Reitzug
So let's talk number one. The model home is the price on. That is let's just say it fluctuates and it's a moving target. And tell us why. Makayla.

00:08:45:22 - 00:09:10:08
Makayla Mast
Well Model Home is exactly what it sounds. It's the model home of the community. So they're going to have upgraded finishes. You know, the prettiest you know finishes, features, whatever. That's the one they're showing off. So that's not necessarily the one that you're going to get which is maybe in progress, which is why you can't see it. So base pricing often includes, you know, a certain package.

00:09:10:08 - 00:09:22:15
Makayla Mast
They'll give you a certain number of color choices and floor choices and tile choices. But if you want to level up and do a more premium package with, you know, better materials, that's going to cost more money.

00:09:22:16 - 00:09:45:21
Joe Reitzug
Yeah. And I got a funny little story for you. The development where my wife and I built the model home had a three car garage. We're like, oh, okay. And then we were told not an option for what? You're looking at that lot. Not an option. Well guess what. Out of. You know, we live in a neighborhood. How many homes do you think there are?

00:09:45:22 - 00:09:47:07
Joe Reitzug
Two. 50. 300?

00:09:47:08 - 00:09:48:00
Makayla Mast
I have no idea.

00:09:48:01 - 00:09:48:21
Joe Reitzug
Something like that.

00:09:48:22 - 00:09:49:17
Makayla Mast
I'm not good at that.

00:09:49:18 - 00:09:56:06
Joe Reitzug
Yeah. And the model home from back in the day is the only one with a three car garage.

00:09:56:08 - 00:09:59:05
Makayla Mast
That's such a hack. That's crazy.

00:09:59:07 - 00:10:00:16
Joe Reitzug
They should not be legal.

00:10:00:17 - 00:10:01:20
Makayla Mast
No. It shouldn't.

00:10:01:21 - 00:10:25:00
Joe Reitzug
So when it comes to the model home and, you know, the base pricing and all this sort of stuff, a broker can help you figure out what's included, what's optional, help you compare base price versus realistic final pricing, and then also, you know, help you talk through some of the decision making because it can get emotional and all of a sudden you're like, yep, throw that on there.

00:10:25:01 - 00:10:28:22
Joe Reitzug
Give me that. Give me the upgraded cabinets. Of course I will.

00:10:28:23 - 00:10:34:20
Makayla Mast
And the second you drive away, you're regretting it. Yeah. Or maybe you're not regretting leveling up.

00:10:34:21 - 00:10:38:21
Joe Reitzug
Yeah. Which brings us to number two, which is? Upgrades add up quickly.

00:10:39:00 - 00:10:40:01
Makayla Mast
Yeah, they sure do.

00:10:40:03 - 00:10:40:18
Joe Reitzug
Right.

00:10:40:20 - 00:10:50:07
Makayla Mast
And builders are not patient with you. They don't sit down and, like, crunch numbers with you. They're like, this is what it is. Take it or leave it. Yeah.

00:10:50:08 - 00:11:04:01
Joe Reitzug
So and all of those upgrades add up quickly. And those can be high dollar items for the profit margin for the builder in a lot of cases. And so obviously they're going to say, yeah this house really needs that.

00:11:04:02 - 00:11:04:17
Makayla Mast
Right.

00:11:04:18 - 00:11:05:06
Joe Reitzug
Right.

00:11:05:07 - 00:11:25:18
Makayla Mast
And if it's more straightforward like you're upgrading your countertops fine. Again it's more straightforward. But if you're changing something structural or you're adding like electrical outlets or certain like electricity features, that one specifically adds up so quickly. You know, they have no other.

00:11:25:20 - 00:11:48:07
Joe Reitzug
Cabinetry, electrical and lighting packages, appliance packages, exterior enhancements, all of those. A broker can help advise which upgrades add resale value. Right. So some of the stuff you can do after you get into the home, or you may not want to do it at all because you may not get your value back, especially if you're thinking this is only a 3 or 4 year home for you.

00:11:48:08 - 00:11:49:17
Makayla Mast
Absolutely. Yeah. Right.

00:11:49:18 - 00:11:55:17
Joe Reitzug
Good point. And we can also help suggest which upgrades are cheaper to do after closing.

00:11:55:21 - 00:11:56:12
Makayla Mast
Yeah.

00:11:56:13 - 00:11:56:22
Joe Reitzug
Right.

00:11:56:23 - 00:12:01:22
Makayla Mast
Oh, and we would love to help you with that. Yep. So a lot of times our people have way better braces.

00:12:01:23 - 00:12:15:05
Joe Reitzug
Yeah. And prioritizing your budget, that budget that you should and want to have when you're going through this process, prioritizing that a lot of times is just talking through what makes sense. What doesn't make sense. We can help you with that.

00:12:15:06 - 00:12:38:22
Makayla Mast
Right. Okay. So leading into the next point, a lot premiums can be significant and very quite widely. So obviously if you want a corner lot or if you want something with a larger lot or larger yard, something with more privacy and a cul de sac, or maybe something with a view, those are all likely going to be premium lots.

00:12:39:00 - 00:13:01:17
Joe Reitzug
Yeah, we can help evaluate, you know, whether the premium is justified as well. Yeah. Right. I've seen some situations where you got, you know, a $310,000 lot when you come into the neighborhood and you go to the back and it backs to the, the green space and it's $100,000 upgrade and you're like, just to back to the green space.

00:13:01:18 - 00:13:05:20
Joe Reitzug
Right. Which you don't get to use at all. Yeah. I don't think that's worth it.

00:13:05:21 - 00:13:25:13
Makayla Mast
Or we dealt with this in Forest Grove, the premium lot back to farmland. And I asked, is that going to be developed anytime soon, just like everything else around here. And the builder was like, yeah, but just not for a few years. So you're paying a premium? Yeah. So yeah, that was really good to know.

00:13:25:15 - 00:13:31:03
Joe Reitzug
Yeah. We can also help identify potential future location drawbacks, right?

00:13:31:08 - 00:13:32:07
Makayla Mast
Yeah, absolutely.

00:13:32:08 - 00:13:39:02
Joe Reitzug
Traffic situations. Drainage is one different phases of construction. All that type of thing.

00:13:39:03 - 00:13:40:01
Makayla Mast
Yeah.

00:13:40:03 - 00:13:50:18
Joe Reitzug
So number four builder contracts are different than regular contracts. And guess what. They're written by the builders attorney.

00:13:50:20 - 00:13:51:22
Makayla Mast
For the builder.

00:13:51:23 - 00:14:00:06
Joe Reitzug
For the builder. Yeah. Which you know it's a good gig if you're going to sell something. Have your own contract.

00:14:00:08 - 00:14:01:07
Makayla Mast
Yeah. Why wouldn't you?

00:14:01:08 - 00:14:30:05
Joe Reitzug
Why wouldn't you? And each builder has their own different contract with all their different, you know, addendum and this and that and the other. So knowing that a it favors the builder, these contracts and B that there is going to be some probably different things than you see in resale. You should have someone that can help you review that and go through all the different things that come up like.

00:14:30:07 - 00:14:40:01
Makayla Mast
No, the differences. Right. Like, we know right away when we're reading a builder contract, what's different from a standard contract? So we can highlight that for you and help you be prepared.

00:14:40:03 - 00:14:42:12
Joe Reitzug
The biggest one is cancellation rights.

00:14:42:13 - 00:14:43:04
Makayla Mast
Oh, yeah.

00:14:43:05 - 00:15:09:12
Joe Reitzug
Don't get me wrong. There are some builders I absolutely love, and there are some builders that are shady as all get out, right? Just like there are with brokers or any anyone, any large group or any, you know, industry, you're going to have some good ones and you're going to have some not so good ones. And we can certainly help you with identifying good and bad builders, both for quality and for how you are able to deal with them.

00:15:09:12 - 00:15:14:00
Joe Reitzug
Some of them allow for huge delays in construction, right?

00:15:14:00 - 00:15:15:00
Makayla Mast
Yeah. Like six months.

00:15:15:01 - 00:15:19:00
Joe Reitzug
Right. Now there's some things like whether or, you.

00:15:19:00 - 00:15:20:17
Makayla Mast
Know, maybe some things on back order.

00:15:20:18 - 00:15:34:05
Joe Reitzug
Yeah. But some of these contracts that I've seen are just like, yeah, we can just stop constructing your home for six months or so. Yeah. And it's like, wait, what? And not give you your money back. Right. And all of that. So.

00:15:34:06 - 00:15:38:12
Makayla Mast
And again, maybe you're fine with that. Maybe it's worth it to you. But I think you should know. Going in.

00:15:38:13 - 00:16:12:22
Joe Reitzug
Yeah. So we can review the contract, explain the clauses clearly, make sure that there's no red flags in there. And then every now and again, you know, getting an attorney to review it can be helpful. 99% of the time, we can tell you what these things mean and give you a good understanding of your options. But I've seen it so many different times where I have people come to me and say, hey, so we just bought this new construction home, or we're sale pending on it, and can you look at this for us?

00:16:12:23 - 00:16:32:07
Joe Reitzug
Right. Don't you love that one? Yeah. And you read through it and you go, oh, well, there's no real flexibility here for you getting your earnest money back. You're aware of that, right? So we have to buy it. Yeah. Did you change your mind? Well, we're just, you know, x, y, z, all sorts of stuff comes up and after the fact, it's too late.

00:16:32:08 - 00:16:32:21
Makayla Mast
Yeah.

00:16:32:22 - 00:16:35:18
Joe Reitzug
It's too late. So. Bummer.

00:16:35:20 - 00:16:36:12
Makayla Mast
That one's scary.

00:16:36:13 - 00:16:41:07
Joe Reitzug
Number five. Do you get a home inspection done?

00:16:41:09 - 00:16:42:17
Makayla Mast
Absolutely.

00:16:42:18 - 00:16:48:03
Joe Reitzug
Absolutely. Of course you do. And that comes as a shocker to some folks.

00:16:48:04 - 00:16:54:05
Makayla Mast
It really does. Just because it is new construction does not mean it was done correctly.

00:16:54:07 - 00:17:15:03
Joe Reitzug
Yeah. And you know, you get a one year home warranty is standard on these things. But how do you know the sewer is hooked up correctly? How do you know the electrical is done correctly? How do you know? You know the roof vents are in place where they're supposed to be. Even though you're getting a warranty, doesn't mean that you know the home and what things.

00:17:15:05 - 00:17:35:23
Makayla Mast
And you can't see it until a bigger issue is happening. One of the longest repair addendum I've ever written was for a new construction home. Yeah. And there was, like, a rag stuck in the sewer line. It was. I mean, the list was extensive. We put, like, painter's tape over so many imperfections. They had to come back and do it the right way.

00:17:36:00 - 00:17:41:06
Makayla Mast
Yeah. So you would have never known to do that if you didn't have your own independent inspection.

00:17:41:06 - 00:18:00:21
Joe Reitzug
So we can help you coordinate inspection timing. You know, getting the inspector there. We can recommend inspectors for you. We can help negotiate the repair request, go through the inspection report with you, and help negotiate this with the builder so that you have peace of mind that you're buying what you are paying for.

00:18:00:22 - 00:18:19:22
Makayla Mast
Yeah, absolutely. Okay. Yeah. This leads beautifully into our next point, which is builder. Warranty is an automatic protection. Right. Oh it's such a good one. So like Joseph earlier, this standard coverage typically includes one year workmanship, two years of systems and ten years of structural.

00:18:20:03 - 00:18:39:14
Joe Reitzug
Yeah, I just got under contract with a very, very expensive new construction home, and they were offering the one year workmanship. Oh, and we're like, what about the systems and the structural? Yeah. And they're like, well, that's implied. And it was just like, okay.

00:18:39:15 - 00:18:41:04
Makayla Mast
No, it's not.

00:18:41:06 - 00:19:08:04
Joe Reitzug
In lessons in writing. Yeah. It's not there. And they're like, oh, of course we'll we'll get back to you with, you know, this thing redone. So anyways, reviewing the warranty documentation, incredibly important. You know, you need to have clarity on what the coverage details are. So all of that's critical. Number seven timelines. Mikaela. Timelines are good Lord. We deal with timelines in resale all the time.

00:19:08:04 - 00:19:23:00
Joe Reitzug
But with new construction, there are a whole different set of timelines. And delays can be based upon whether labor shortages permit delays. The one that I love is supply chain issues.

00:19:23:02 - 00:19:24:02
Makayla Mast
That's the worst.

00:19:24:03 - 00:19:53:13
Joe Reitzug
That is the worst. So setting realistic expectations, being able to get progress updates once you're signed on the dotted line, the builders representatives job is to get more of his home sold. And a lot of builder's representatives don't really have it in their wheelhouse, either time wise or in their compensation to follow up with a home. That's what they consider already sold, which is in escrow.

00:19:53:14 - 00:20:19:08
Joe Reitzug
It's not sold until the money is in the builders hands, and you have the keys and you're in the house and being able to have that whole from, you know, the moment that you get your offer accepted to getting your keys. That still has to be a time where people are looking after your best interest and communication and making sure that timelines are met and progress is monitored.

00:20:19:10 - 00:20:20:11
Joe Reitzug
Just makes it world of.

00:20:20:11 - 00:20:25:21
Makayla Mast
Difference, right? And we just have we know the deal. We know the drill. We know how to stay on top of these things. Yeah.

00:20:25:22 - 00:20:29:02
Joe Reitzug
This next one. I love it's.

00:20:29:04 - 00:20:31:13
Makayla Mast
I don't I know that's sarcasm.

00:20:31:15 - 00:20:35:19
Joe Reitzug
It's. Yes it is heavy with sarcasm.

00:20:35:21 - 00:20:54:04
Makayla Mast
Builder financing versus outside lenders. Okay. So builders they might have these bright shiny offers for closing costs credits which would include like rate by downs. There's one right down the street from me that says interest rate of 4.99%.

00:20:54:08 - 00:20:55:12
Joe Reitzug
Or design credits.

00:20:55:13 - 00:20:57:07
Makayla Mast
I don't know how that's possible, but yeah.

00:20:57:08 - 00:21:22:05
Joe Reitzug
All of that. The builder gets a cut of most of the time, right? Yeah. And so they're offering this for a couple of reasons. A they can make money off of it, and B which they'll disclose in the paperwork that you'll get. But B is they think that it will be easier if the people that they have relationships with are controlling your financing.

00:21:22:07 - 00:21:52:05
Joe Reitzug
We can help you find the best loan program or the best lender to help you with that. And what we've found and what I've found over the years is that when you look at the incentives, the credits, whatever they're offering, and their rate and the total package of what it's going to cost to get that loan, nine times out of ten, it's the same price or cheaper to go with a mortgage broker.

00:21:52:05 - 00:21:59:03
Joe Reitzug
It's not about credits or incentives or even rate. It's what the total amount to purchase is.

00:21:59:05 - 00:22:01:07
Makayla Mast
And in your monthly payment.

00:22:01:08 - 00:22:32:09
Joe Reitzug
And your monthly payment. But the fees associated with lenders go all over the place. And it's, you know, for us as real estate brokers, it's one number, right? It's one number. And with lenders it can be ten numbers. How they get compensated. Right. And especially with a lender working through a builder. So you know, reviewing the lender incentives, comparing it versus a mortgage broker, determining whether incentives outweigh rate differences and all that type of thing.

00:22:32:11 - 00:22:36:08
Joe Reitzug
It's worth the time and the expertise to have someone helping you out with that.

00:22:36:10 - 00:23:04:18
Makayla Mast
Absolutely. I think we can really look to look at both or all packages objectively too, and just help people break that down. So yeah, well said to our next point. Fees and community costs. So good one dues. What do those dues look like? What does it cover? Do you also have amenity fees that could be, you know, separate if there's something like a clubhouse or pool or something in the community and then any future assessments.

00:23:04:18 - 00:23:23:21
Makayla Mast
So typically with newer construction neighborhoods, they're likely won't be future assessments unless for some weird reason the home maintains the roads. But that would be more common in like a townhome condo association. Considering the age of the outside structural elements for future assessment reasons.

00:23:23:22 - 00:23:40:23
Joe Reitzug
Yeah, and a lot of people, a lot of new construction homebuyers will get the whole package and immediately their eyes get glossy because it's usually ten documents that each document averages about, you know, 25 to 30 pages. So you're reading a book and.

00:23:41:03 - 00:23:42:07
Makayla Mast
And it's not interesting.

00:23:42:08 - 00:24:03:16
Joe Reitzug
No, no it's not. Bless her heart. You are the best person I've ever known in this business for reading those, by the way, I think I'm serious. Makayla has saved so many clients. Thank you from getting in pickles. When you review the documents, all of a sudden you figure out what the way will and will not allow and basically explains the community governance, right.

00:24:03:20 - 00:24:10:16
Joe Reitzug
And sometimes people get a little Agra with their rules and regulations about what they want the neighborhood to be.

00:24:10:18 - 00:24:14:15
Makayla Mast
Right. And it could completely make or break your decision to build in that neighborhood.

00:24:14:16 - 00:24:20:15
Joe Reitzug
100%. And sometimes it's a good thing, though you might look at the way and go, oh, okay. Yeah, I didn't.

00:24:20:20 - 00:24:23:03
Makayla Mast
Want my neighbor's house to be yellow and purple.

00:24:23:04 - 00:24:42:03
Joe Reitzug
Exactly, exactly. Plus, it also can outline, sometimes in very small print, what potential future fees will look like and how those are to be paid. So all good stuff. Number ten property taxes may increase. And by May I mean they will death and taxes. Isn't that what they say?

00:24:42:04 - 00:25:03:13
Makayla Mast
Land is what they say. Yeah. So vacant land is taxed differently than what we call improved land, which has a structure on it. So once your beautiful new house goes up and they know that you're living in there, they are going to send you a little or a little bill in the mail and let you know that your property taxes will be increasing.

00:25:03:14 - 00:25:25:04
Joe Reitzug
Yeah. And different counties and cities have different ratios of what you can expect per square foot. We won't go into that now. We don't have another six hours for this episode. But they're you know, we're familiar with what you can probably expect. And that's a big part of what we can do to help you with understanding that.

00:25:25:05 - 00:25:28:18
Makayla Mast
We can only raise it a certain amount, and we will be able to provide that for you.

00:25:28:19 - 00:25:32:23
Joe Reitzug
Yeah. Number 11, landscaping and exterior completion.

00:25:33:00 - 00:25:48:05
Makayla Mast
Yeah. So back to that base pricing we talk about that might not include fencing, full landscaping, irrigation systems. You know, all things that you want to consider doing before you move into the home, especially things like irrigation probably meant that done before you're laying grass.

00:25:48:07 - 00:26:00:22
Joe Reitzug
Small ticket items. So if you think that something something's included and it's not, and all of a sudden you move in and you're like, you mean I got to sod my backyard? I thought I was getting grass back here. Yeah. Not cheap.

00:26:00:23 - 00:26:02:00
Makayla Mast
No it's not.

00:26:02:01 - 00:26:07:08
Joe Reitzug
So. And all of that's negotiable, by the way, because they have crews that can do all that.

00:26:07:12 - 00:26:24:16
Makayla Mast
Yeah. Oh, yeah. So we can help you understand what's included in your package with that and then negotiate inclusion where possible. And then, you know, if it's not possible, then maybe we consider doing it after the sale closes with our contractors who are affordable.

00:26:24:20 - 00:26:31:04
Joe Reitzug
Yeah. So let's talk final walkthrough on punch list. Love it. I love a good punch list.

00:26:31:06 - 00:26:53:12
Makayla Mast
So similar to what I was saying earlier is you go through and you, you know, look at every square inch of the property with a fine tooth comb. You can ask them to fix paint imperfections. You know, you want to make sure things like the stove and the dishwasher actually hooked up correctly. A lot of times they forget to hook those ones up, just things like that.

00:26:53:12 - 00:26:58:05
Makayla Mast
And then we'll we'll give them an opportunity to fix that before we pay them.

00:26:58:06 - 00:27:22:17
Joe Reitzug
And I can't tell you how many times, Makayla, I've done a punch list walkthrough. You know, the blue tape. You walk through the home with blue tape and this needs to be touched up. That needs to be, you know, there's a dent here where they someone installing something took a big gouge out of the wall or whatever. I can't tell you how many times I've gone back to a new construction home the day before closing.

00:27:22:17 - 00:27:41:01
Joe Reitzug
And there's blue tape everywhere, and I call the builders representative and say, hey, we're supposed to close tomorrow. My folks are actually signing right now. When is this going to be done? Oh, my. You know, my chart says that it's already done.

00:27:41:03 - 00:27:42:17
Makayla Mast
It's like I forgot about that six months ago.

00:27:42:18 - 00:27:57:21
Joe Reitzug
Right, right. And it's like, no, I just walked through there and still a lot of blue tape and a lot of things that need to be done in a regular situation. If the builder representative was, you know, representing you, you might close and then show up at your house with blue tape everywhere.

00:27:57:22 - 00:28:05:05
Makayla Mast
Yeah. Or they're like, oh, we'll just do it next week. And you're like, that's what I wanted to move in, why wouldn't I? Yeah, yeah. Or they just don't do it or.

00:28:05:10 - 00:28:21:04
Joe Reitzug
Yeah. That's also happened. Too many times. Yeah. So you know having representation matters big time in this situation. And I have so many builders that I've worked with over the years that I absolutely love. And there are so many good ones here in Portland.

00:28:21:05 - 00:28:22:01
Makayla Mast
Yeah, they really are.

00:28:22:02 - 00:28:41:20
Joe Reitzug
They're really, really are. And I have so many friends that work for builders. You know, they're great representatives of the builder. And oftentimes those people can be good representatives for a buyer looking to buy a home. And they can be fair. But no matter how good they are and how well intentioned they are, they're still representing the builder.

00:28:41:21 - 00:28:42:19
Makayla Mast
Yeah, that's the person.

00:28:42:20 - 00:29:06:18
Joe Reitzug
You're paying for it, right? Right. So you know, the builder reputation matters in this situation. Past communities, warranty service responsiveness, long term quality. Performance. You know what's their standing with the Better Business Bureau? All of those type of things. Take a look at it. But those are things that your broker can do for you. And we can also share our experiences with local builders.

00:29:06:19 - 00:29:22:22
Joe Reitzug
Right. Both good and bad. We're going to be straight up with you. And just because we had a bad experience doesn't mean you might not have a good experience, or they may not have improved or whatever the case might be. But if I were in your shoes. I'd want to hear all the unfiltered truth about.

00:29:22:23 - 00:29:29:12
Makayla Mast
Oh, absolutely right. This is the biggest, likely the biggest purchase you will ever make in your life. You should know what you're getting into.

00:29:29:13 - 00:29:52:06
Joe Reitzug
I know one builder. I think I've sold it at least 12, 13 homes that they built and a handful of others that, you know, quite a few over 30 years. You know, some of these guys have been around forever. And you get to know builders. And even if you haven't sold one of their properties, you get to know how they operate and how their representatives work with people.

00:29:52:06 - 00:29:57:22
Joe Reitzug
So candid feedback and assessing risk big time benefit for you?

00:29:57:23 - 00:29:59:02
Makayla Mast
Yes, absolutely.

00:29:59:03 - 00:30:01:06
Joe Reitzug
What else? Makayla.

00:30:01:08 - 00:30:30:21
Makayla Mast
I think we talk about resale strategy from day one. I think that's a huge consideration. Of course, this is way before you're under contract. But when we're touring the property, you want to ask about other builders build in phases. So if you like I was saying earlier, are looking at a view of a field. You know, we want to know whether that's going to be the next phase of this builder's development, whether it's going to stay farmland, things like that.

00:30:30:22 - 00:30:59:03
Joe Reitzug
Yeah. And how are they going to build? Because if your backyard has a big berm on top of it and there's a house up there looking down into your backyard, all of a sudden you have zero privacy, right? Right. Stuff like that. So I think we've made a pretty good case. Why? This is a no brainer. So get good representation when you're buying a new construction home and you can go to LivPortland, LivPortland and click podcast.

00:30:59:03 - 00:31:07:21
Joe Reitzug
And we'll have the show notes with all of our notes in here. And you can download that. But before we go, we got to talk about what we're loving.

00:31:07:23 - 00:31:15:03
Makayla Mast
What we're loving. Okay. Oh do you have your top of mind? I do. Okay. You go first.

00:31:15:05 - 00:31:25:04
Joe Reitzug
It's actually along the lines of what we just talked about. And I am loving how many, you know, people are actually looking to build a home.

00:31:25:05 - 00:31:25:20
Makayla Mast
Really?

00:31:25:21 - 00:31:27:01
Joe Reitzug
And buy new construction.

00:31:27:02 - 00:31:28:20
Makayla Mast
Okay. I love that too.

00:31:28:21 - 00:31:53:10
Joe Reitzug
The numbers. So we are big into a lot of different developments, but I've been tracking South Hillsboro, the new 8000 home development in South Hillsboro, and the number of sales in South Hillsboro is three times the average number in Portland metro for resale.

00:31:53:12 - 00:31:54:08
Makayla Mast
That's insane.

00:31:54:09 - 00:32:00:22
Joe Reitzug
It is insane. So that's what I'm loving. People are deciding that, hey, I'm gonna go build myself a home.

00:32:00:23 - 00:32:02:19
Makayla Mast
Yeah. That's great. Yeah. Loving that too.

00:32:02:20 - 00:32:05:00
Joe Reitzug
Hopefully you people are getting representation.

00:32:05:02 - 00:32:31:11
Makayla Mast
Yes, exactly. I think I've said this in a previous episode, so I apologize, but I am loving our current inventory. There is a lot to look at right now, and that is so much fun for us. When we get to go to our with buyers search for someone today. It was it's between homes between 400 and 600,000, in Beaverton, Hillsboro and there were like 150 several family homes to look at.

00:32:31:11 - 00:32:38:03
Makayla Mast
So that's crazy. That's the first time in my five year career that I've seen this much inventory, which is exciting.

00:32:38:03 - 00:32:40:00
Joe Reitzug
So you're almost an old timer now?

00:32:40:01 - 00:32:42:19
Makayla Mast
I'm almost an old timer. I'm so excited.

00:32:42:21 - 00:32:46:00
Joe Reitzug
Yeah. That's crazy.

00:32:46:02 - 00:32:47:22
Makayla Mast
So yeah. Okay with that.

00:32:47:23 - 00:33:07:00
Joe Reitzug
With that, we're going to bid you adieu. As we said earlier, if you're looking for the show notes on this, where we have all the notes from what we talked about here today, you can go to LivPortland, LivPortland and click on podcast. Find this episode and you'll be able to download the notes that we have here.

00:33:07:01 - 00:33:07:19
Makayla Mast
Yes, yes.

00:33:07:21 - 00:33:08:12
Joe Reitzug
So yeah.

00:33:08:13 - 00:33:11:05
Makayla Mast
Reach out with any questions. Otherwise thank you for listening.

00:33:11:05 - 00:33:13:09
Joe Reitzug
Thanks, guys. Have a good day.

00:33:13:11 - 00:33:26:14
Makayla Mast
Thanks for joining us today. If you're interested in finding out more about Joe, myself or the LivPortland team, you can go to LivPortland. Thanks for giving us a listen and see you next time on the Off the Record podcast.