KB Home Phoenix, Inc. Complaint - KB's Refusal to fix a problem it created with my home
MESA, ARIZONA -- During the Summer of 2006, I wrote a contract to purchase a new condominium from KB Home at Muirfield Village in Mesa, AZ. I went through the standard process of choosing a model, a specific lot location, and various options.
My unit was supposed to come with a small back yard area. Nothing fancy, just enough room to put a grill and some patio furniture.
In November, my unit was nearing completion and I noticed that my back yard is NOT AT ALL like the sales model. It is just a useless hill. KB sales reps explained that in some lots, the ground changes levels and there was nothing they could do. My small yard is totally worthless.
When I was choosing the lot, NO ONE from KB Home explained this is one of the few lots that would be a hill. It's not in my contract, and nobody told me verbally. According to AZ law, a builder/home seller must fully disclose any potential issues. KB Homes did NOT follow the law.
This issue will significantly harm my resale value. All things being equal, why would a buyer want my unit when they can get one a few doors down with a useable back yard? When I asked KB to address the problem, they refused.
I explained that I was willing to compromise. I would have been happy if they would have made a retaining wall, or if they took a small amount off my purchase price to compensate me for lower resale value. KB sales manager refused all of my ideas.
When I confronted KB with the fact that their sales representatives had not followed AZ law and had failed to disclose the issue, they gave me two options: 1) They would cancel my contract and refund my earnest money. 2) I could move to another lot and postpone my move-in date 7 to 9 months.
The problem with cancelling is that my current lease is up in February because I was expecting to close on the condo. If I cancel, I will have to scramble to find another place to live. Also, I really like the location, and don't want to cancel.
The problem with moving to another lot is that if interest rates increase by next fall, I will have lost thousands of dollars in interest. KB is unwilling to help buy down my interest rate if this situation occurs. In addition, my current lease is up in Feb. and I'd still have to find a place to live.
I don't feel that I have asked for anything unfair. KB Home created the problem. KB Home failed to disclose an issue according to AZ state law. But yet, they are treating the issue as if the problem was my fault. In the end, I will be hurt financially because of their mistake.
The solution KB Home is offering is the very LEAST they can do under the law. They are not willing to take responsibility for their own mistakes. They have proven that they have NO concern for their customers.
I teach business at a local community college, and will use this situation as an example of poor customer service, bad management and corporate greed. I never tell my students what to do, but maybe this example will make them think twice before buying a KB Home.
I do not recommend purchasing a KB Home--EVER!