I am looking at a KB home in the Austin/Leander area. Based on the previous reputation KB has had, would this be a wise choice?

Asked by Whattodo512, Austin, TX Wed Apr 11, 2012

I am not sure of the quality of the homes or resale value. I am also weary of the upfront sales approach compared to setting up financing first, before floor plans and upgrades are negotiated.

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19
Roxie Miller, Home Owner, Lakewood Ranch, FL
Thu Aug 7, 2014
Don't make the mistake of your life, Google KB Home complaints, my new "dream" home, had to move out after only 7 months. KB Home refused repairs or totally shoddy repairs on so many across the country. They refused to repair my house, water intrusion, mold, weak floors. I was forced into arbitration costing me tens of thousands, money that you don't get back. After all the money I spent in forced arbitration, back at square one, the right for KB Home to repair.
2 votes
Just so you know DR HORTON home builders are even worse. there will never be a 100% best home builder with no problems. KB homes has to be the best of them all. There are no other home builders in my area other than kb home and dr horton. i will never buy a ugly old house
Flag Sat Mar 28, 2015
Betina Forem…, Agent, Austin, TX
Fri Apr 13, 2012
I think KB has made big strides in overcoming their perviously very poor reputation. The homes they have built in the last four years are better built and generally have a better GREEN rating than ever before. While most builders have salespeople in the office to help, you should have your own Buyers Agent go with you the VERY FIRST time you visit a builder. If your Realtor does not go with you during your first visit the builder may not recognise the Realtor as your buyers agent. This means the Realtor won't get paid and won't be recognised as your Realtor and won't be made aware of your transaction details. The sales person works for KB not you. Your Buyers Agent can help you negotiate a better price and help make sure your not over-paying for the home. They can run the comps of recent neighborhood sales so you know what the actual value is. A word of advice, make sure you have that new home inspected by a third party home inspector. Builders are not immune to errors in construction and they often use sub-contractors so sometimes errors are mjade. We are all only human. I wish you luck on your purchase.

Sincerely,
Betina


Betina Foreman- Realtor, C.N.E.
Austin Home Girls Realty
512-771-6318
1 vote
Sonia Roberts, Agent, Round Rock, TX
Thu Apr 12, 2012
KB Homes is a National Builder and one of the top sellers in the Austin area, with that said :
Pros:
more square footage per dollar then many other builders
fast build time
incorporating energy efficiency technology
Cons:
reputation within Austin Realtor industry is one of the lowest in the nation per national survey
fast build time
no diversity of builders within the same subdivision
scrape most of existing foliage/trees off lots

My Brokrer has developed a class to educate Realtors/Clients about the quality and building process of a new home. I have seen the presentation and have a better understanding of the building process and how builders differ in construction quality. Because of this endeavor, we have implemented walk throughs as the new home is being constructed since this is the best time to catch and correct issues.
We urge you to obtain a Tealtor to represent your interest in purchasing your new home. We would like to work for you, we would be glad to share our knowledge and expertise with you and educate you on the different builders processes.

Sonia Roberts, Realtor®
Canady Realty
512.709.1811
Sonia@CanadyRealty.com

"A satisfied customer is the best business strategy of all."
Michael LeBoeuf
1 vote
Marsha Ross, Agent, Cedar Park, TX
Wed Apr 11, 2012
Resale value of these homes is very difficult to predict. It depends on if it is a new neighborhood or an old one, the size, the price negotiated, etc. Be wary of them saying they can handle all of your financing - you are correct if they are talking prices before they even ensure you can afford it or more importantly that you know you can afford it - they are doing it backwards! I can tell you from experience that they are harder than most builders to resell, mainly because they build them so cheap. However, you must try to determine how long you intend to live there, why you are choosing that particular neighborhood, etc. And, yes, the other folks are right - the sales agents work for the builder and not you. They have buyer's agency fees worked into the cost of the home, but will not tell you that. Also, when you purchase a new home pay attention to the taxes!! Most of the builders base the tax value on the cost of the raw land and then you get hit with the taxes the following year and cannot breathe! This has played a huge part in the current real estate conditions around the country. Take care! Good Luck! Call me if I can help! Marsha 512-797-3903
1 vote
Bill Austin, Agent, Austin, TX
Wed Apr 11, 2012
Whattodo,
KB builds what they build. Having a Realtor on your side makes sense though. Why you ask? The sales person onsite works for KB not you. As Realtor I know and can get information about what deals they are giving right now. It costs you nothing for a professional Realtor to be on your side and you won't get a better deal because you don't have a Realtor. If I was listing the quality of the "track home" builders KB would not be the top of the list and wouldn't be the bottom either. Their "pricing" speaks for it's self and as the saying goes, you get what you pay for.
As for financing I'd suggest getting approved first with the help of your Realtor. I just helped a client get out of a new home because the "in house lender" kept telling them they would qualify even with upgrades. Guess what they didn't qualify and they lost their down payment toward upgrades (20% of upgrade cost) or about $5,000.00, POOF GONE!

Bill ~ 512-709-6343
1 vote
Sweet_expres…, Home Buyer, Austin, TX
Mon Feb 1, 2016
We got a home from them {NEW} Second day upstairs bathroom flooded out. We have had lots of problems, But we put our hard earned money into it. Was so proud that God had blessed us with our first HOME. I still love the home and the neighbor hood. We learned that these people are for KB and not you.There is no need to try and get results. WE just put our trust in God and Know that the KB people that sold bad houses to people {knowingly} will not be blessed.Our goal for this year is to have a new roof for our HOME. Guess what , the way we fixed the other problems. We will get this done also. So do not be sad or angry just do your research before you BUY any home. God bless
0 votes
Abby Kbhomes…, Home Buyer, Vero Beach, FL
Fri Aug 8, 2014
I see this is an older post. I hope you went someplace else to buy your house. I have lost everything I own, have had a house that leaked for years, KB Home refused to fix any of the houses in the neighborhood correctly. The whole place leaked and the whole place defaulted. The only way out is foreclosure. Now the houses that have been supposedly fixed are re-leaking. Thousands of houses in Florida & N. Carolina leaking. KB Home is a nightmare of epic proportions.
0 votes
Kb Home Prob…, Home Owner, Lathrop, CA
Thu Aug 7, 2014
To anyone thinking their quality has improved, just do a search on youtube for KB Home and look at the first several pages of news reports regarding construction and warranty issues. There are also websites against the company including http://www.KB-HomeSucks.com
0 votes
Roxie Miller, Home Owner, Lakewood Ranch, FL
Thu Aug 7, 2014
The FL Attorney General is investigating KB Home for fraud and deceptive practices. Look at the BBB site, Warning and no rating on KB Home. Check other states for complaints filed to the Attorney General, frightening that this company is still allowed to sell homes.
0 votes
Dan Koehler, Home Owner, Bradenton, FL
Sun Jan 20, 2013
For anyone who thinks that KB Homes has improved their quality, take a minute to look at the horror stories of neighborhoods in the Tampa Bay FL area that are living a nightmare...http://TheKBHome.com
0 votes
The person who had this site up came to an "agreement" with KB Home
Flag Thu Aug 7, 2014
Best Agents…, Agent, Austin, TX
Fri Apr 13, 2012
I have an Agent who has previously worked for KBHomes and can steer you to the right community. He has extensive knowledge of their building practices and would be a great insight for you. Let sit down and we can figure out the best plan for you and your wife. 512-487-9325
0 votes
KB Home paid off whistle-blowers in out community knowing full well our
homes were not built to code, this isn't an error, it is outright fraud and deceptive practices
Flag Thu Aug 7, 2014
Michael Newm…, , Austin, TX
Wed Apr 11, 2012
Hello What To Do 512,
You're ahead of the game already, since you asked for advice in advance before jumping into a home purchase on your own. Congratulations!
You just gave yourself the opportunity to do things in the right sequence and enjoy success.

First, you deserve a knowledgeable, experienced REALTOR on your side for guidance.
Second, you have the chance to actually learn from the right lender what's real for you to afford.
Then, you can confidently take the steps necessary to discuss with your trusted advisor what to consider to buy, who to consider as the best builders by actual experience and where to look.
Often, a nearly new home can be a better bargain for you to consider, as well.

Would you go out and take a chance on a new car purchase without some experience yourself, feedback from current owners and looking at all the "Yelp" and "Consumer Reports" type info out there? Of course you wouldn't.

So why would you consider for a minute that going it alone is OK with the biggest investment of your life? It costs you nothing to prepare in advance and have the help that you deserve. It's crucial.

My wife, Alice, and I work together in our RE business here in NW Austin and Cedar Park/Leander.
We have helped many first time buyers over the years and we make sure they'll want our help again.
I managed several new home builders over 20 years prior to our brokerage team.
We started Ryland Homes in Austin and I managed Centex, Morrison and Reytex Homes, as well,

You can be sure that a builder loves you to come in unassisted. They know it's in their favor.
When you come in with a REALTOR by your side, they will act differently throughout.
The experience can be much more pleasant for you, especially if something comes up that will cost them more money to make it right for everyone. They do not want to risk starting a bad reputation with hundreds of agents! We all share our experiences and a builder can be in big trouble quickly.

We'll be happy to help you with every aspect of the process.
Check us out at: " http://;www.HotAustinProperties.com", and give us a call.
Look forward to meeting you.

Mike and Alice Newman
0 votes
Jan Bowman, Agent, Georgetown, TX
Wed Apr 11, 2012
First of all, kudos to you for considering resale value when you buy! Many home buyers don't realize they make their money on their home when they BUY it, not when they SELL it (on average).
I completely understand your frustration about figuring out what is actually included in a new build price. As a Buyer's Agent, I work with my buyer clients to make sure they understand and receive everything they want in a new home IN WRITING, and follow up from beginning to work on your behalf.

I would love to visit with you by phone or in person to better understand your needs and offer advise if you're interested. I work and live in the Cedar Park/Leander area, and you can contact me at:
Phone: 512-296-3598
E-mail: Kim@KimStanley.com
Web Reference:  http://www.Team1Austin.com
0 votes
John Staplet…, Agent, Cedar Park, TX
Wed Apr 11, 2012
This question opens an important aspect of agent representation. The freedom to share opinions comes with the client / agent relationship.

I strongly recommend you have someone on your side before going any further. Ideally, a buyer would not walk into a model home without an experienced agent by their side.

Good luck!

John
0 votes
John Crowe, Agent, Austin, TX
Wed Apr 11, 2012
The reputation of KB has improved dramatically over the last decade plus. When JD Powers ranked builders (they stopped last year), KB did well. This written, the service is now one of the most important elements. If you are feeling uncomfortable, like you might dealing with a used car salesman, take a break and initiate conversations with some other builders to compare approach. Or do what was written below and hire an agent to represent you. The builder pays the commission and you get professional assistance to drive negotiations and troubleshoot/facilitate contract to close.

Good luck!
Web Reference:  http://www.crowehomes.com
0 votes
Sherry Stark, Agent, Jonestown, TX
Wed Apr 11, 2012
Hi there,
I would recommend you hire a Buyers Agent to help you answer all these questions. It is actually more important when purchasing a home from a builder, as the sales rep in their office work for them not you. If I can help, my contact number is 512-965-1233, sstark@onepercentusa.com.

Regards,
Sherry
0 votes
tim sweeney, Agent, Austin, TX
Wed Apr 11, 2012
KB is the low end builder, that doesn't mean they can't deliver a good house to you, I would get it inspected in several stages before closing, get an inspector and ask your inspector to help you.
0 votes
John Crowe, Agent, Austin, TX
Wed Apr 11, 2012
The reputation of KB has improved dramatically over the last decade plus. When JD Powers ranked builders (they stopped last year), KB did well. This written, the service is now one of he most important elements. If you are feeling uncomfortable, like you might dealing with a used car salesman, take a break and initiate conversations with some other builders to compare approach. Or do what was written below and hire an agent to represent you. He builder pays the commission and yogurt professional assistance to drive negotiations and troubleshoot/facilitate contract to close.

Good luck!
Web Reference:  http://www.crowehomes.com
0 votes
Nell Hanson, Agent, Cedar Park, TX
Wed Apr 11, 2012
I would have an agent to represent you. We can give you statistics and what we know about the builder. Thank you! NellHanson@jbgoodwin.com 512-426-5080
0 votes
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