Yesterday’s Las Vegas Review Journal featured an item on communities that stopped or scaled back development partway through, resulting in “stranded” homeowners who must contend with abandoned construction sites, fewer businesses and services nearby than they expected, and property values damaged as a result. This isn’t just happening in isolated subdivisions, it’s happening in huge master-planned communities as well. The article is well worth reading.

While I have colleagues who specialize in helping people purchase new construction, I rarely touch it. First, there are almost always construction delays with new construction. Second, even without problems like the article describes, there is no guaranty that the community as built out will really be as promised. Too many things can happen both inside and outside the community itself between the day you pick your vacant lot and the day you move in. Third, it is easy for buyers to forget that the nice salesperson in the builder’s office works for the builder, and is paid to put his or her employer’s interests ahead of the buyer’s interests. Finally, there are complicating factors in financing new construction. Of course, you can use the on-site financing from the builder, but that may not be the best option.

If you are considering buying new construction home, this checklist is a very good start. You will also want to consider other factors: Is the area acceptable now? What if certain improvements were delayed or cancelled? What if the plans change and more dense housing (smaller lots, more condos or apartments) is built nearby? Do any of the plans depend on government action, such as building new roads and schools? What if those plans fall through? How many other people have already committed to purchasing homes in the community? How many of those people are investors rather than future neighbors?

People will have different reactions to the answers, and there is nothing right or wrong about any one person’s decision. However, it is important to ask and truly think about the answers before investing in new construction.