KBLies.com continues to receive a high amount of inquiries from potential homebuyers regarding this neighborhood. This topic will continue to be expanded, but KBLies wanted to meet the requests of the viewers and provide some information in the meantime.

Woods of Alon is the newest KB community for San Antonio that opened in February 2008, and is currently selling the most expensive homes on a price per square foot basis in the San Antonio market. The neighborhood map indicates that 110 phase one lots were released, and based on the KB representative the community will finish at over 330 homes when completed. However, this community is suffering the worst out of the entire KB Home portfolio in San Antonio in terms of new home sales. When touring the neighborhood, construction is at a standstill, and is abnormally slower than the other KB neighborhoods throughout San Antonio considering the current housing market.

Click here for Woods of Alon neighborhood map

Here are some statistics as of March 1, 2009 at approximately the one year mark for this community.

·        4 owner occupied homes out of the 110 phase one lots and 330 total lots

·        2 inventory homes from buyer cancellations

·        1 home that appears to be completed, and still has a sold sign in the yard

·        3 vacant lots with sold signs in the yard

·        ZERO homes under construction, and no sign of continued development

With only seven homes built at one year, of which two were cancellations, puts this on a development pace of 15.5 years just to complete phase one. These types of numbers could cause KB to repeat their pattern of behavior and sell the lots to another developer, or sell cheaper homes at the expense of the equity of the initial homeowners. In late 2008, KB Home introduced a lower priced and smaller plan called Old Spanish starting at $229k for 1853 sq/ft. This is probably their last attempt to sell homes in this collection before discontinuing the series, and bringing in a cheaper collection.

The neighborhood map in the model that indicates new home sales can be misleading. A home purchase is not finalized until the buyer takes possession, and the attrition/cancellation rate has typically been close to 33-45% on KB new home sales, according to a KB sales representative. This attrition/cancellation percentage is in line with the attrition observed at Quarry at Iron Mountain.  KB Home does not build inventory or spec homes. Therefore, any inventory home you see was forfeited from a previous buyer. Secondly, KB has a history to mislead potential home buyers and give a false sense of community well being in terms of home sales. Many of the “sold” signs you see on the lots or on the neighborhood map in the model are sometimes cancellations. KB Home just leaves the sold sign there for an extended period of time to give an illusion of a thriving neighborhood. 

Woods of Alon can be considered a semi-luxury development given the $300k-$400k price point for homes, and the $142,000 median price point for home sales in San Antonio. With homes in this price range, it is surprising to see KB cut corners and put the large electrical and cable boxes in the FRONT lawns. It is a greater expense to run the lines in the back of the house, but it is a much better alternative than having it in the front lawn. 

KB Home has had challenges sustaining home sales in this upper price point in San Antonio dating back many years. KB home has tried to enter the market of higher priced homes but has a history of failure in doing so. This failure extends back to approximately 2003 when KB Home was trying to develop a neighborhood called Iron Mountain Ranch located at Sonterra and Hardy Oak in the Stone Oak area of San Antonio, TX. Their lack of trust and reputation of construction defects in San Antonio was one factor that prevented them from selling homes at this higher price point despite the strong housing market of that time. KB Home abandoned the development and sold all of the lots to Pulte, which was able to make it the nice neighborhood it is today. 

KB’s track record of failure also extends to its current development Quarry at Iron Mountain. Unfortunately, every year since its inception KB Home has abandoned the current home collection and introduced a lesser collection as the replacement. By spring 2009, this development will have had 5 collections spanning 34 floor plans for a neighborhood with 121 total lots. 

Home buyers at this price point can be more on the savvy side, but there is no excuse not to educate yourself on the largest purchase made in your lifetime.

Things to consider regarding this development:

1.     KB has a track record of bait and switch behavior in which KB will discontinue/downgrade collections or sell the lots to another developer. This has RECENTLY occurred throughout San Antonio in Saddle Mountain, Quarry at Iron Mountain, Trails at Herff Ranch, and Sundance Trails, Fox Grove, and Auburn Hills. 

2.     Woods of Alon is a possible next target of the bait and switch because of the slow sales. KB will not disclose this before it happens. The worst feeling for a new homeowner is to discover this information a few weeks after they take possession of their home and move in. 

3.     With the higher price point of homes sold by KB in this development, please consult Realtors or native San Antonians about potential challenges trying to re-sell an upper level KB Home in the San Antonio market because of the builder’s reputation

4.     How will you feel if you try to sell your home and the feedback from potential buyers might be, “We would consider the purchase if it wasn’t a KB home.”

5.     How will you feel if KB Home discontinues the current home collection and brings in a lesser collection causing a devaluation in your purchase?

6.     How will you feel if KB Home adopts that same tradition in Woods of Alon that has existed in Quarry at Iron Mountain? The two neighborhoods have similar price points, and Quarry Iron Mountain has abandoned and introduced a new collection every year since its inception.

7.     How do you feel about purchasing an upper end home that has a large electrical or cable box in the front yard?