buying older KB Home? (San Antonio, Howe: foreclosed, mortgage, appliances)

[puissance]

I am considering buying an older KB home that was built in the early 90s. The house is going for about $165K and has four bed rooms, two living areas and a huge yard. However, I have heard so many bad things about KB home that I am reluctant to make an offer on it yet. The house appears to be in good condition, but I don't want to have foundation problems, plumbing problems or other problems that I have heard KB homeowners complain about. Given that the house is much older, do you think the fact that KB made the home is still an issue? What about selling it later down the road if I needed to? I've heard that a lot of realtors will not even show buyers a KB home. Any advice is appreciated.

Thanks

[kevcrawford]

The main problem that you're going to find with KB homes is that they approved a lot of people that didn't need to be approved for loans, which led to a lot of people in those neighborhoods not taking care of the house because they didn't have the money for both the mortgage and maintenance. This led to people being foreclosed on and investors moving in.

If an older KB home was kept up well, it should be OK. Many, many weren't though. They're definitely not the highest quality builder in town, but they, like all builders, have to follow certain building guidelines. They're good starter homes. They're OK if you keep them up. Your inspection will turn a lot of that up.

If you're buying in an older KB neighborhood, drive the neighborhood several times to look at the houses and how the neighbors keep them up. You're also buying the neighborhood in addition to the house, so pay attention to that, as it'll have a big effect on your value.

What is your Realtor's advice? Have you seen other areas and neighborhoods?

[SilverCreek78250]

Originally Posted by kevcrawford

The main problem that you're going to find with KB homes is that they approved a lot of people that didn't need to be approved for loans, which led to a lot of people in those neighborhoods not taking care of the house because they didn't have the money for both the mortgage and maintenance. This led to people being foreclosed on and investors moving in.

If an older KB home was kept up well, it should be OK. Many, many weren't though. They're definitely not the highest quality builder in town, but they, like all builders, have to follow certain building guidelines. They're good starter homes. They're OK if you keep them up. Your inspection will turn a lot of that up.

If you're buying in an older KB neighborhood, drive the neighborhood several times to look at the houses and how the neighbors keep them up. You're also buying the neighborhood in addition to the house, so pay attention to that, as it'll have a big effect on your value.

What is your Realtor's advice? Have you seen other areas and neighborhoods?

This is really solid advice. Kudos!

When we were searching for our current home, we were open to anything, including a new KB home. But we did exactly what KevCraford hs suggested - we drove through numerous KB neighborhoods that were in the price range of what we could afford. Yes, for the money, we could get more square footage, but to us, it seemed like once a neighborhood was more than a few years old, every third house was showing signs of decay.
If I had ten acres and no next door neighbor, I'd consider a KB floorplan and builder because then I would only be responsible for me. But do the drive as suggested and you'll probably have second thoughts.

Maybe you could mention the neighborhood and CDers could give you more info.

[banker]

Originally Posted by kevcrawford

The main problem that you're going to find with KB homes is that they approved a lot of people that didn't need to be approved for loans, which led to a lot of people in those neighborhoods not taking care of the house because they didn't have the money for both the mortgage and maintenance. This led to people being foreclosed on and investors moving in.

If an older KB home was kept up well, it should be OK. Many, many weren't though. They're definitely not the highest quality builder in town, but they, like all builders, have to follow certain building guidelines. They're good starter homes. They're OK if you keep them up. Your inspection will turn a lot of that up.

If you're buying in an older KB neighborhood, drive the neighborhood several times to look at the houses and how the neighbors keep them up. You're also buying the neighborhood in addition to the house, so pay attention to that, as it'll have a big effect on your value.

What is your Realtor's advice? Have you seen other areas and neighborhoods?

Good advice. I would look at the neighborhood and judge how well it was kept up. There are lot of builders older communities I wouldn't want to live in based on the appearance of the neighborhood today. One thing to avoid with many of the older KB communities is the high percentage of siding...which tends to not hold up well as many home owners and investors in lower priced communities do not paint as often as they should.

[banker]

Originally Posted by puissance

I am considering buying an older KB home that was built in the early 90s. The house is going for about $165K and has four bed rooms, two living areas and a huge yard. However, I have heard so many bad things about KB home that I am reluctant to make an offer on it yet. The house appears to be in good condition, but I don't want to have foundation problems, plumbing problems or other problems that I have heard KB homeowners complain about. Given that the house is much older, do you think the fact that KB made the home is still an issue? What about selling it later down the road if I needed to? I've heard that a lot of realtors will not even show buyers a KB home. Any advice is appreciated.

Thanks

If it is an early 90's home then it is probably a Rayco home and not KB. KB purchased Rayco (formerly Ray Ellison) in 1995/1996. They assumed some communities that Rayco had started. I would avoid Rayco and early KB homes based on what I have seen. Not until KB's current San Antonio president took over about five years ago did they begin to develope homes with added architectural interest and use higher quality finishing materials. Fundamentally KB must comply with all local building codes...but they often skimp on the details which give that feel of quality. If it is a Rayco or KB home built before 2003 I would avoid it. Even in the post 2003 era - most of the KB communities are still box on box styling with the only selling point being the most square footage for the money. Their nicer communities are much more than the price point you are looking.

The best advice is to look at the community today. Same goes for older Pulte communities...which may have beautiful fronts but have so much siding on the sides and back that they deteriorate quickly as time goes on...as does Centex and DR Horton.

Do your homework but keep an open mind. If it is an older existing community look around and even ask neighbors how they have enjoyed their home.

[kevinm030]

When I went with my parents to go house shopping, they looked at KB Home, DR Horton, and Pulte. You could tell the difference between KB Home compared to DR Horton and Pulte. SOME KB Home neighborhoods look like they're 10 years old rather than 2 years old.

They finally picked at DR Horton (this was 2 years ago). The house has been fantastic, we love it. Everything (plumbing, electrical, foundation, appliances, and climate control) has been great. No problems with anything.

Couldn't have made a better choice!

[banker]

Originally Posted by kevinm030

When I went with my parents to go house shopping, they looked at KB Home, DR Horton, and Pulte. You could tell the difference between KB Home compared to DR Horton and Pulte. SOME KB Home neighborhoods look like they're 10 years old rather than 2 years old.

They finally picked at DR Horton (this was 2 years ago). The house has been fantastic, we love it. Everything (plumbing, electrical, foundation, appliances, and climate control) has been great. No problems with anything.

Couldn't have made a better choice!

What price range were you shopping? What neighborhoods did you look at?

[banker]

Originally Posted by puissance

I am considering buying an older KB home that was built in the early 90s. The house is going for about $165K and has four bed rooms, two living areas and a huge yard. However, I have heard so many bad things about KB home that I am reluctant to make an offer on it yet. The house appears to be in good condition, but I don't want to have foundation problems, plumbing problems or other problems that I have heard KB homeowners complain about. Given that the house is much older, do you think the fact that KB made the home is still an issue? What about selling it later down the road if I needed to? I've heard that a lot of realtors will not even show buyers a KB home. Any advice is appreciated.

Thanks

Just curious what neighborhood are you looking at?

[majormadmax]

I had a friend buy a new KB back around 2003 and he has since moved into a different house as he said it was the biggest piece of crap he had ever seen. He was time-constrained to find a place to live when he bought it, but still admits it was a bad decision.

Some KB neighborhoods we've driven through lately are horrific, they are only a few years old but they already look dilapidated. I think some of their more upscale communities are faring better; but for the most part they have a well-deserved bad reputation.

I always recall what some of my troops used to say about KB when I was first stationed here about eight years ago…it was the only way they could afford a 3000 ft² home for under $100K!

Bottom line, you’ll get what you pay for. And with the market being what it is today, there are numerous options out there that are a much better solution!

Cheers! M2

[Snowglobe]

I guess I am getting old because my house is a Rayco house built in 1994 and it stills seems kind of new to me. I think it was one of the last ones built by Rayco before KB came along.

My house and my neighborhood are in pretty good shape. I have had no major or really minor problems with my house. It is, however, almost completely brick. I didn't buy the house until it was about 5 years old, so I suppose it could have had problems that had been addressed previously.

A good percentage of homes in San Antonio were built by Ray Ellison/Rayco. I have not been able to avoid this builder, but that may be because of my price range and the area of town. I have lived in 4 different houses in my adult life and they have all been built by Ray Ellison. Maybe I've been lucky, but none of them were "crappy".