"I believe that there are [builder] customers that are overpaying for the home to effectively get an incentive... They may potentially be upside down when they try to sell that home,"
"We believe in price transparency," Mezger tells . "Our biggest competitor is resale-and [resale] sellers don't offer incentive packages."
"Our buyers tell us they like the clarity," McGibney tells . "They [our buyers] know exactly what they're paying for... I think [transparent pricing] really lowers that risk of [the buyer] overpaying for a home and potentially being upside down."
KB Home prefers outright base-price reductions instead of incentive packages when pricing adjustments are needed. The company views incentive-driven strategies as creating inflated base prices and larger loan balances that increase near-term resale risk. A June 2025 observation noted some buyers paying higher base prices to obtain mortgage rate buydowns, which could leave them upside down if they need to sell soon. KB Home emphasizes transparent pricing to give buyers clarity on the exact purchase price and to lower the risk of overpaying. Rob McGibney will assume the CEO role on March 1, 2026.
Read at Fast Company
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