Choice helping KB Home stay competitive, exec says

By Aïssatou Sidimé - San Antonio Express-News February 21, 2009

When Ken Langston became president of KB Home's Central Texas region in December, he took over just as the San Antonio housing market was beginning to see widespread price declines for existing homes as well as new ones.

In addition, the large production builder was facing protests from some San Antonio customers in response to its decision to add smaller, lower-priced homes in some KB Home communities.  Langston, 40, is a San Antonio native. He talks about his plans for KB Home in San Antonio, the foreclosure stimulus package and his local connections.

Question: How did you get your start in the real estate field here?

Answer: I graduated from MacArthur High School and then got a degree in design from the University of Texas at San Antonio ... Instead of sitting behind a drafting table, I decided to get out in the field and build the homes myself.

Q: With home sales expected to continue slowing ... what is KB Home doing to stay viable and competitive?

A: Our Build-To-Order business model allows us to stay very competitive ... This model allows us to offer maximum choice to our customer, which provides a lot of value because they pay for what they want. Our customer service also leads to a lot of referrals. In terms of choice, they choose the lot, floor plan, plan options, elevations and then they go to our new Home Studio and choose from among 5,000 items there.

Q: What percentage of your business is from referrals?

A: About 10 to 15 percent.

Q: What product features do you expect to be big sellers in the San Antonio market in the next two years and why? Will it include KB Home's new 800-square-foot, $65,000 house that is a big seller in Houston?

A: Some of the things that will continue to be a big factor in purchasing decision will be energy efficiency ... additionally flexible floor plans, which are about offering choice whether they want to convert a study or den into a fourth bedroom or add a game room upstairs. ... On the 800-square foot-home, I'm aware of the plan, but we don't have any plan to introduce those particular homes at this time.

Q: Congress just passed an $8,000 tax credit for first-time home buyers. Will the new credit make a significant difference in new-home sales locally?

A: I don't think it's a cure-all. It'll definitely help some people get off the fence. When you couple this tax credit with where current prices are and interest rates are ... it's great incentive.

Q: What percentage of KB Home's San Antonio buyers are first-time buyers?

A: About 60 percent.

Q: What do you do for fun?

A: I like being outdoors, fishing, probably spending time with my kids coaching baseball, basketball and football. That's about all I have time to do ... We have two young sons. They keep us busy.

Q: Do you still have family in San Antonio?

A: Yes. My parents live here. My wife's parents live here as well, and my sister lives in a KB Home neighborhood.

Comments

KBLies.com 3:46 PM

Ironically, the title of this article revolves around the customer's choice. However, KB Home has withheld critical development information from hundreds of home buyers throughout San Antonio. KB Home only discloses positive information to potential buyers, and will keep information confidential that might adversely affect the sale of a home. KB Home has recently made drastic development changes throughout eight of its developments here in San Antonio with bait-and-switch tactics, and does not disclose this information to potential home buyers and allow them to make an informed decision. Therefore, they are denying these potential home buyers the ability to make a “choice”. They can blame the economy for the change of their development strategy by downgrading neighborhoods, but there is no excuse of this corporate irresponsibility of non-disclosure of these significant bait-and-switch home changes. KB can’t control the economy, but they CAN control their corporate actions. KB offers “choices” on the 5000 items at design center, but does not offer customers the “choice” to buy into a development that will be devalued by the actions of the builder.

Jennifer 5:30 PM

"This model allows us to offer maximum choice to our customer, which provides a lot of value because they pay for what they want." (Ken Lanston says above) I am a homeowner in the Sundance Trails Subdivision and I can tell you I didn't want to pay for a home with defects nor a home last lost 15% value in less than 8 months. Atleast his pockets are lined. I wonder if he lives in a KB home. Buy my house back Mr. Langston.

Frank 6:28 PM

I live in the Sundance Trails subdivision and I want everyone to know not to buy a KB home. Alot of people owe more money on their mortgage than what their homes are worth because of KB's deceptive practices and lies. It's bad enough they build homes with many defects they just can't fix. Buy my house back KB.

Copyboy 7:20 PM

Classic doublespeak: We build these shacks for people who aren't fussy about electric sockets and toilets working. If EN wants to shill, fine, but I hope you got paid for it. This nonsense belongs in the ad columns.

kbhomebuilt2fail.com 7:30 PM

I also live in Sundance Trails. K.B.can continue with there half truths. I don't see anything in this article about integrity, full disclosure. K.B. did build a beautiful community center to draw the homebuyers in. They built a beautiful 3 mile nature trail in a Potranco creek bed. (never disclosed to the homeowners on the green belt. O did I mention our gym has been closed for over 3 weeks. And yes all the 5000 items of up-grades. To bad they didn't display all the foundation problems, sewer leeks under the foundation and yes never putting a sewer pipe that connected from the house to the main sewer. Should I go on. How about the day after you close on your home the water pipes between the floors comes undone. Yes K.B. may think they are doing such a great job. And yes most of there K.B.buyers are first time homeowners because once you buy a K.B. Home you will surely never buy another one.

LuvSA 8:55 PM

All this article is is an interview with a business man, it wasn't about fixing all of your problems. She didn't ask any questions about some of the problems so I don't understand why you would call it doublespeak. She asked the questions, he answered them. I am sick and tired of hearing all of your whining.

LuvSA 9:00 PM

Have you looked at the housing market lately, no one can sell there house for what it's worth. Don't think you're special and the only one and stop blaming KB.

Ds 9:11 PM

LuvSA you are wrong. The 78245 area is up 2% in home sales. K.B. is the one building cheaper smaller homes which brings the property value down. This is by K.B Homes choose not ours. The only thing we did was buy there poorly built homes.

Frank 9:13 PM

Good evening LuvSA. Just like you, everyone is entitled to their opinion. That's why we are all allowed to post comments here. You will never see anyone telling you what to write down. These people know by experience what they are talking about and what KB did has nothing to do with the economy. If you don't like what people are saying, then maybe you find something else to read.

kbhomebuilt2fail.com 9:18 PM

www.kbhomesucksagain.com

ds 9:47 PM

KB home blames the economy. This is hog wash. Let’s not forget it was the building industry lead by KB Home, targeting 60% first-time buyers and its mortgage scam that ruined our national economy. KB homes is building smaller homes at the expense of our home equity with there stripped down starter homes.

frustrated homeowner1 2:14 AM

i am also a kb homeowner and dont agree with what kb did as far as our value to our homes,but i also dont agree with the very few home owners that continue to devalue the community and not being sensitive to other home owners values in the community.come on people go about this the right way,because your acting just like kb homes did to devalue our homes by substantially lowering the starting prices.i would never help a builder devalue my property more than they have already done..............

OBUNCTUOUS 7:22 AM

KB came into my established neighborhood started by Morton and sprinkled with some custom homes. They bought up large tracts and then ruined our neighborhood. I once loved living here. It is painful to drive through now.

Cognitum 7:57 AM

I wonder if EN actually got paid for running this article or this was their attempt at "investigative" journalism???

Gown-Ah 8:00 AM

How can a native of San Antonio not appreciate the beauty of the hills in the northern section of Bexar County? KB and others, like Post Oak Development and Toll Bros have scraped the beauty of the Hill Country for the sake of building "affordable" housing. Now the water in our fragile Edwards aquifer is in jeopardy and the clean air we breathe. Build guys, but don't scRAPE the land. Just clear the area needed for the building's footprint!

Gown-Ah 8:17 AM

When builders replace the native trees, shrubs, grasses and wildflowers with exotic Japanese this and that, the native wildlife suffers. Only grackles and European sparrows exist. And, the perpetual live oak is slowly succumbing to oak wilt.. Little is known by these builders and landscapers about precious native understory trees and shrubs. Esto es muy triste...

dr gonzo 8:57 AM

Everyone knows that KB homes are poorly built. If you contributed to KB homes by buying one than YOU are to blame for cleared trees and falling property values.

Amoonandstar 9:06 AM

Everyone knows about KB here, so my question is why do people continue to buy their homes? I mean, you get what you pay for and there is a reason why they are one of the more affordable builders. It doesn't take a genius to understand this so you can't really complain if you knew what you were getting in to. Also what's the saying? Let the buyer beware!

dr gonzo 9:23 AM

People think they can buy DREAMHOUSES for 150,000

kbhomebuilt2fail.com 9:26 AM

I understand you all think we know what we where buying. That is not true for us the people who are from other states. And frustrated homeowner we are not devalueing your property KB Homes already did that with all the cheap smaller homes they are putting in. By the way with no brick facing. For our community KB also is ruining it with the cheap little houses that all look the same drive around and take a look. If you are happy with the new changes that is great. You will be doing this again in the very near future look at KBS HOMES past history. Go to there web-site and look at Houston our original model homes start in the $70,000.00. This is coming they will not stop with the new stripped down smaller box homes.

dr gonzo 9:43 AM

YOU, the buyer, are the REASON for these ugly cookie cutter neighborhoods. KB, along with the equally horrific CENTEX, cleared entire hills for these "live in a box on a concrete slab so cramped you can spit on your neighbor next door" homes. You can be from mars and know just by sight what you were getting into...BUY THE TICKET TAKE THE RIDE!

aegis551 10:37 AM

To all those who say they luv the environment blah, blah, blah... If you dont live in a cave or under a rock then your part of the problem too, nuff said. I have been in San Antonio going on 2 years now so my knowledge of KB and their deceptive business practices is very limited at best. We looked for a year before we decided to buy a home and in that time we asked questions about KB and were told they had problems in the past but have gone on to fix them and are now a very reputable company. We were told this by experts who SHOULD have been in the know on this subject, obviously NOT. At Sundance we have homes in the floodplain, foundations that are crumbling beneath our feet, homes being built half the size and for 2/3 the price of what we were sold at a time when our area of San Antonios home prices went up 2.2%. When you buy a home you also buy the vision the company has for the community. We were sold one thing and given another. Not everyone can afford $300K homes on up. For some $150K is their life savings. Its people like you dr. gonzo ya snotty fool that have people across this country fed up with you and your ilk.

dr gonzo 11:16 AM

hey aegis551 want some crackers with your whine? You were took and huslted now you and you ILK are crying! So who's the more foolish?

Janetahmad 11:31 AM

Texas should not be a “buyers beware” state as you suggest, especially when it comes to purchasing the most essential and basic consumer product of a lifetime. As Texas Comptroller Carole Strayhorn said, buyer beware is the motto of the unscrupulous, and should not be the hallmark of State Policy. Blaming homeowners (victims) for builder deceptive business practices (selling without telling) and shoddy new home construction has given a poor image to Texas. A calloused attitude toward homebuilder victims is not a good idea at a time when the state and the nations economy suffers from the failure to regulate the homebuilding industry that thrived on creation of toxic mortgages. A consumer movement is now and it is growing. Most people don’t know that Texas has a “Builder Protection Agency” (TRCC), bought and paid for by the building industry in 2003. It takes more responsibility to get a drivers license than to become a builder in Texas. Knowledge and financial responsibility are optional for Texas Homebuilders. No other state in the nation has an agency that regulates the consumer instead of big business like TRCC. Builders, especially KB have grown confident that they can impose their predatory business practices without accountability. Make no mistake, without accountability KB’s deceptively marketed “vision” for its communities and its construction will remain the fundamental business plan to lure unsuspecting buyers.

al is your pal 4:29 PM

kaufman broadman aka kb got run out of California for the same reasons, shoddy workmanship, unethical business tactics. despite that why anyone would want to live in one of their eyesore neighborhoods is beyond me, and on top of it to fall for the idea that those houses is worth a dime...?? ugly, inferior scraped down neighborhoods where our family farms and woods used to be. You people all deserve each other!

Lisa 6:15 PM

"I understand you all think we know what we where buying. That is not true for us the people who are from other states" If you are from another state that is all the more reason to ask about a company's reputation. You could have asked people in the grocery store, gas station, convenience store, day care center, anyone/everyone could have warned you not to buy that home kb. you get what you pay for.

kbhomebuilt2fail.com 7:38 PM

To al is your pal I am sorry your family felt the need to sell there farm land. That is not our fault. We purchased one community and are getting another. As for the wild life I feed the birds,I have trees and plants and even Jasmine so please stop blaming the homeowners. It is starting to sound like you all work for K.B.Homes

Cognitum 10:45 PM

Lisa, so its the buyer's fault? The fact that KB oft times engaged in OUT AND OUT FRAUD had nothing to do with it? The fact that KB used substandard materials in many of their homes doesn't seem to bother you either...You are so quick to blame the purchaser, but so willing to give KB a pass. Why don't you google KB so you can get an idea of some of their tactics...then at least you will have worked for your moniker of callous disregard instead of being simply ignorant...

KC2389 8:32 AM

I live out of state and I am in the process of relocating to San Antonio. I had my mind set on a purchase in KB's woods of Alon. After reading these postings and the websites mentioned, I am going to have to reconsider this purchase and go with another builer or purchase a used home. Woods of alon is a great location, but I am not confident KB will be able to finish it with the same quality of home that is there now. If the KB reputation is really that bad in San antonio, I will not consider any of their homes because I want to be able to sell it later on.

On The Level 9:29 AM

San Marcos KB Home - The lowest quality home I have ever purchased. It truly is like a manufactured mobile home but on a slab. I was very disappointed, poor craftsmanship and low grade materials. The upstairs floor is not level! Since we purchased the house in 2003 we have been in constant work to upgrade the home to a standard of quality. And for you KB home executives reading this post; I will be exercising my ten year warranty.

100sanantone 1:10 PM

Why don't people in San Antonio buy an older house and re-model it? There are so many affordable ($50k-$100k) homes in San Antonio that are well built with beautiful features (slab foundation, mature trees, hardwood floors). Just buy one of these, spend a bit more to fix it up, and we wont have to worry about awful KB homes, further destruction to the aquifer, or awful cookie-cutter neighborhoods. Restore San Antonio!!!

MinnesotaMan 2:05 PM

KB has had a notorious reputation for years. It constantly amazes me that people are still buying from them. I'm not saying that what KB homes is doing is right, in fact it is unethical, but come on, if you lived in S.A. for any length of time you know what kind of company they are. I love the person who posted that they had heard KB had problems in the past, but had corrected those. And you still bought from them? It's too bad your houses are so shoddy, but that is and has always been the KB way.

Khi 3:04 PM

Buyer beware! I would put a little research into buying a house. I can't believe the people that bought KB homes and then complained about them. It's analogous to complaining about the quality of the merchandise at the dollar store! Maybe the Government will bail them out.

Jireh 4:23 PM

Choices? That is a loaded word. You have choices alright! Check them out: www.disposablekbhome.com Now...define "competitive."

janetahmad 4:40 PM

After performing a review of the issues of homebuilding industry state policy and construction defects, Texas Comptroller Carole Strayhorn said,"buyer beware is the motto of the unscrupulous, and should not be the hallmark of State Policy." Texas homebuilders are unregulated. KB Home and all other builders have no incentive to build homes right the first time when there is no penalty for building them wrong the first time. Texas should not be a “buyers beware” state, especially when it comes to purchasing the most essential and basic consumer product of a lifetime.

1HappyHomeOwner 5:16 PM

I purchased a KBHome in Stone Oak last year and love it. When I researched building a tract home I was surprised that only KB had a poor reputation. The biggest fault I could find was that their lower and mid level lines were of poor architectural design...but poor quality? I looked at Centex, Medallion, Pulte and McMillian and found that when comparing their similar product - they all had the same "quality" but just better styling. When you move up to the $300,000 level and up - KB has an incredible product. I live in the Quarry at Iron Mountain and must say that the Estate and Liberty homes were better than anything those other builders offered in the same price point. Saddly the previous president opted to build a cheaper and boxier product in The Quarry last year. This new president featured in this article has smartly reversed that and is bringing back a premium product - plans not built anywhere else in San Antonio. KB has some ok starter home communities that are not what I would want - but are much better than Fieldstone, Centex, Armadillo and others at the lower end. The best advice I could give anyone about any builder is that they have their home inspected during the build. We have a beautiful home and look forward to many years of home ownership in the Quarry. Saddly, many people only judge KB by their entry level product.

Lisa 5:17 PM

Cognitum - I'm not condoning what KB has done - but before i spent so much money on a home i'd do lots and lots of research first. and it would have taken very little research to figure out I didn't want a kb home.

themanwithaplan40 7:03 PM

1HappyHomeOwner is either just "One" happy kb home owner, or a KB employee. If you are a KB home owner, I can't beleive you bought a KB home AFTER your research told you they were the only builder with a bad reputation. Logic would indicate to avoid the only builder with a bad reputaiton.

kbhomebuilt2fail.com 8:37 PM

Minnesota Man You are wise to stay away from K.B Homes. Being from another state that homebuilders are regulated why would we think different. I know some of you will jump all over me for this. The best thing all of us (unhappy homeowners can do is write your state representatives, any government official. Let them know how K.B does business. They will build the nice homes and the community centers. Then they start to build smaller cheaper homes. They pride themselves on customer satisfaction not. The one homeowner that is happy good for you. But one out of hundreds is pretty bad. If there is a homeowner from Cobblestone sub-division beware when you see they are building new model homes you will be next. You will lose your equity to. K.B should just do the right thing and stop using cheap materials, also they should disclose when your property is backed up to a flood zone. We asked and was told we don't have flood issues. We have the maps and letters to prove different.

Inspector Not Bought By Builders 6:51 AM

Wow he put his sister in one of those messed up houses?

kbhomebuilt2fail.com 7:49 AM

lol thats funny inspector. He didn't say if he lives in one, I guess he knows better then to do that.

MJR 10:46 AM

I would not purchase a KB home. However I want to know why builders do not built small houses for the 55+ people? When people are getting ready to retire we do not need a $1,000.00 a month house payment. We would also like a neighborhood where there is peace and quiet and would be taken care of. Like many of the new apartment complexes leasing in all parts of San Antonio you go to apply for rent and they only cater to the Section 8 people. I would not like to live where there is Section 8 but would welcome a community for those ready to retire.

hector Garza 11:40 AM

From a local S.A. native. The issue we have is what Phoenix is now facing, the population boom - Urbam Sprawl. I have owned a ranch in Pipe Creek Texas going on 30 years. The rape of the Hill Country is evident. we are growing too rapidly. Every day I witness new construction. It is very sad indeed. I have taken an informal poll of all the "out of towners" coming to S.A. and the majority responded it was due to their local ecomony and housing market. Beware S.A. we will face in very short order, what these people are escaping in the first place. Dear ol' San Antonio, is no longer. The beautiful Texas Hill Country is in jeopardy... period.

Mizzou J School3:38 PM

It is hard even to imagine what it will cost the city of San Antonio to tear town these KB homes once they become slums. Please stop this silliness.