KB Home is a publicly traded homebuilder that sells new construction houses in multiple states
KB Home (Kaufman and Broad Home Corporation) is one of the largest homebuilders in the United States. The company designs and builds new single-family homes, primarily in California, Arizona, Nevada, Colorado, Florida, Georgia, North Carolina, and Texas. Unlike buying an existing home from a private seller or smaller builder, buying from KB Home means you are purchasing a newly constructed house directly from the builder, often before construction is complete.
KB Home operates as a public company listed on the New York Stock Exchange under the ticker symbol KBH. This means the company is regulated by the Securities and Exchange Commission and must disclose financial information publicly. The builder offers a range of home designs and price points within each market, though the specific homes, locations, and pricing available depend on which region you are looking in.
When you buy a KB Home, you work directly with the builder's sales team and financing options rather than arranging a separate mortgage with an outside lender, though you can bring your own financing if you choose. The builder also provides a warranty on the home, which covers different components for different lengths of time.
Key Takeaways
- KB Home sells newly constructed homes in eight states, with the specific designs and prices varying by location and current inventory.
- You can finance through KB Home's preferred lenders or bring your own mortgage from a bank or credit union.
- KB Home provides a limited warranty that covers structural defects and major systems for one year, with some components covered longer.
- The total cost of a KB Home includes the base price, any upgrades or options you select, and closing costs, which the builder may help offset.
- New construction homes from KB Home are subject to property taxes and homeowners insurance like any other home, and you own the house outright once the mortgage is paid.
How KB Home financing works and what lenders are involved
KB Home does not lend money itself. Instead, the company has relationships with multiple mortgage lenders that it calls "preferred lenders." These are typically large banks and mortgage companies that have agreed to work with KB Home buyers. When you decide to buy a KB Home, the sales team will give you a list of these preferred lenders and their contact information.
You are not required to use a preferred lender. You can bring your own financing from any bank, credit union, or mortgage company that will lend on new construction. However, using a preferred lender may come with incentives — KB Home sometimes offers closing cost information, rate buy-downs, or other financial help if you finance through one of their partners. The amount and type of information varies by location and current market conditions.
The mortgage process itself works the same way as buying any other home: you submit an process, the lender orders an appraisal, you provide documentation of income and assets, and the lender issues a loan commitment. The main difference is timing. With KB Home, the appraisal happens on a home that is either under construction or not yet started, so the lender bases the value on the builder's contract price and the home's specifications rather than on comparable sales of finished homes.
You will also need to pay for a home inspection, though this is different from an inspection of an existing home. Many buyers hire a third-party inspector to walk through the home during construction at key stages (framing, mechanical rough-in, before closing) to catch any issues before they are covered up or the sale closes.
What KB Home's warranty covers and for how long
KB Home provides a limited warranty that begins on your closing date. The warranty is not the same as a home service contract or extended warranty you might purchase separately — it is a builder's warranty that covers defects in workmanship and materials.
The standard KB Home warranty covers structural defects and major systems (electrical, plumbing, HVAC, and appliances) for one year from closing. Some components, such as the foundation and roof, may have longer coverage periods — typically two to ten years depending on the component and your state's laws. The exact terms are in the warranty document you receive at closing.
The warranty does not cover normal wear and tear, damage from misuse or lack of maintenance, or issues caused by acts of nature. If you find a defect during the warranty period, you report it to KB Home's warranty department, and the builder sends someone to inspect and repair it. If the builder and you disagree about whether something is a defect, the warranty document outlines a dispute resolution process.
After the warranty period ends, you are responsible for repairs and maintenance. Some homeowners purchase a separate home warranty or service contract from a third-party company, which covers repairs to major systems for a monthly or annual fee, but this is optional and is not provided by KB Home.
Price, upgrades, and what affects the total cost of a KB Home
KB Home publishes a base price for each home model in each community. This is the starting price for that home with standard finishes and features. However, the price you actually pay is usually higher because most buyers select upgrades.
Upgrades include things like higher-grade flooring, upgraded kitchen cabinets, granite countertops, larger windows, additional square footage, or premium paint colors. Each upgrade has a separate cost, and these add up quickly. A home with a $400,000 base price might cost $480,000 or more once upgrades are selected.
The total cost also includes closing costs, which typically range from 2 to 5 percent of the loan amount. These cover the lender's fees, title insurance, property taxes, homeowners insurance, and other standard closing expenses. KB Home may offer to pay some or all of these costs as an incentive, especially if you use one of their preferred lenders.
Property taxes and homeowners insurance are separate from the purchase price. Property taxes are set by your county or municipality and are based on the assessed value of the home. Homeowners insurance is required by your lender and protects the home against fire, theft, and other covered events. Both of these costs vary widely by location.
How buying from KB Home differs from buying an existing home
When you buy a KB Home, you are buying directly from the builder rather than from a previous owner. This means there is no real estate agent representing you on the seller's side — the KB Home sales team represents the builder's interests. You can hire your own real estate agent to represent you as a buyer, and some agents specialize in new construction sales, though KB Home does not pay the buyer's agent commission the way a traditional home sale does.
The timeline is also different. With an existing home, you typically close within 30 to 45 days of making an offer. With KB Home, if the home is not yet built, closing may be 6 to 12 months away. During that time, you have locked in the price and specifications, but the home is not yet yours. If the builder encounters construction delays, you wait. If you change your mind, you may lose your deposit or face other penalties depending on your contract.
The home itself is brand new, which means everything is under warranty and nothing has been used. There are no surprises about the roof's age, the furnace's condition, or hidden water damage. However, new construction homes can have defects too — poor workmanship, materials that fail early, or design flaws — and you rely on the builder's warranty and your own inspection to catch them.
You also have the ability to customize the home before it is built. With an existing home, you buy what is there. With KB Home, you can choose finishes, layouts (within the model's options), and upgrades before construction starts. This flexibility comes with the trade-off of waiting for the home to be completed.
Property taxes, homeowners insurance, and ongoing costs
Once you own a KB Home, you are responsible for property taxes just like any other homeowner. The assessed value for tax purposes is usually based on the purchase price, though some jurisdictions reassess periodically. Property tax rates vary by county and state — a home worth $500,000 might have annual property taxes of $3,000 in one state and $8,000 in another.
Homeowners insurance is required by your mortgage lender and protects the structure and your belongings against fire, theft, weather damage, and other covered events. The cost depends on the home's location, age, construction type, and the coverage limits you choose. New homes often have lower insurance premiums than older homes because they have no history of claims and meet current building codes.
If you have a mortgage, your lender may require you to pay property taxes and insurance into an escrow account each month along with your mortgage payment. The lender then pays these bills on your behalf. If you pay off the mortgage, you pay taxes and insurance directly to the county and insurance company.
Homeowners association (HOA) fees are common in KB Home communities. These monthly or annual fees pay for common area maintenance, landscaping, security, or amenities like pools or fitness centers. The HOA fee is separate from property taxes and insurance and is not optional if you live in a community with an HOA.
What happens if you want to sell or refinance a KB Home
A KB Home can be sold like any other home. You can list it with a real estate agent, show it to buyers, and negotiate a sale price. The buyer will need to obtain financing (unless they pay cash), and the sale will close once the lender approves the loan and all parties sign the documents. There is nothing special about selling a KB Home — it is treated as a standard residential property.
If you want to refinance your mortgage — to lower your interest rate, change the loan term, or cash out equity — you can do so through any lender. The home will be appraised at its current market value, not its original purchase price. A KB Home that was purchased for $450,000 five years ago might appraise for $550,000 today, allowing you to refinance based on that higher value.
The KB Home warranty does not transfer to a new owner in most cases. If you sell the home, the new owner gets whatever warranty period remains on the original coverage, but the terms and coverage limits do not expand. This is one reason why some buyers purchase a separate home warranty contract — to extend coverage beyond what the builder provides.
Frequently Asked Questions
Can I negotiate the price of a KB Home?
KB Home prices are typically set by the builder, but negotiation is possible, especially in slower markets or if you are buying a home that is already under construction or completed. Incentives like closing cost information or upgrades at no cost are more common than price reductions. Your real estate agent or the sales team can tell you what flexibility exists in your specific market.
What if there is a defect after the one-year warranty ends?
After the warranty period, repairs are your responsibility. Some defects — like foundation problems — may be covered longer than one year depending on your state's laws and the warranty document. If you believe a defect is structural and should be covered, contact KB Home's warranty department with documentation. You can also pursue legal action, though this is expensive and time-consuming.
Do I have to use KB Home's preferred lenders?
No. You can bring financing from any lender. However, KB Home's preferred lenders may offer incentives like lower rates, reduced closing costs, or builder information that other lenders do not. Compare offers from multiple lenders, including KB Home's partners and outside lenders, to find the best terms for your situation.
How long does it take to close on a KB Home?
If the home is already completed, closing typically takes 30 to 45 days, similar to buying an existing home. If the home is under construction, closing happens when construction is finished, which can be 6 to 12 months or longer from the time you sign the contract. The exact timeline depends on the builder's construction schedule and any delays.
What is included in the base price of a KB Home?
The base price includes the land, the home's structure, standard finishes (basic flooring, paint, fixtures), and standard appliances. Anything beyond the standard — upgraded flooring, premium paint, additional features — costs extra. Your sales representative can show you what is included in the base price for the specific model you are interested in.