Kaufman & Broad Unveils Dream Home Studio

TEMPE, Ariz. (June 9, 2000) – Bringing the benefits of retail shopping to home buying, Kaufman and Broad Home Corporation (NYSE:KBH), one of the nation’s largest homebuilders, showcased for the first time today the prototype "Dream Home Studio"*a new showroom outlet designed to make it easier for consumers to build the "home of their dreams."

 

Located in Tempe, the 11,500 square foot Dream Home Studio features floor plans, community and neighborhood maps, financing and more than 5,000 designer options and home upgrades for personalizing a home from start to finish. The new studio was designed by The Retail Group Inc. and will be followed by studios in all of the markets where Kaufman and Broad builds, beginning with Las Vegas, Nevada and Ontario, California.

"There is a difference between buying a house and building a home," said Bruce Karatz, chairman and CEO, Kaufman and Broad. "By creating a ‘retail’ experience for home buyers, we are, under one roof, providing all the necessary ingredients for people to creatively shape a home to their individual tastes and budgets. The base home becomes a blank canvas for homebuyers to design their dream home."

"It’s difficult to visualize a home by just reviewing floor plans," Karatz added. "The Dream Home Studio will let people see, touch and explore a myriad of home options."

For example, instead of looking at pictures of flooring options, homebuyers will see actual samples and will be able to feel the difference between walking on a tile floor versus walking on carpeting or wood floors. With everything under one roof, homebuyers will be able to see how the kitchen cabinets and countertops they’ve chosen will look under the type of lighting they’ve selected and they’ll be able to view dozens of carpet samples side by side with the oak banisters selected for the staircase railing. Being able to view all of the design options together will help new homebuyers make selections they’ll love for years to come.

Additionally, the Dream Home Studio will have Kaufman and Broad experts on site that will help guide homebuyers through choosing a location and mortgage options for their future home.

The Dream Home Studio is linked to the Company’s Web site, www.kbhome.com, and eventually consumers will be able to select their home options online—even customizing floor plans and choosing upgrades online.

Kaufman and Broad led the way by opening an expansive showroom to display options and upgrades in 1996. Today’s homebuyers expect much greater flexibility from their builder, in large part because Kaufman and Broad spearheaded this kind of home buying in which consumers were able to choose the features they always dreamed of at an affordable price. Once again, Kaufman and Broad is transforming the home buying process, changing the showroom format to a true retail experience in the Dream Home Studio.

    Homebuyers will benefit from the following aspects of the Dream Home Studio:

  • Buyers will move into a home that is completely finished, there will be no need to attend how-to classes to create a dream home, buyers already have a dream home.


  • The cost of the options are rolled into a mortgage at a rate significantly lower than a typical credit card. Buyers also benefit by deducting the interest from these options on their annual tax return.


  • If a buyer doesn’t want to finance their options in a 30-year mortgage, they can work with the Kaufman and Broad Mortgage Company to finance Dream Home Studio purchases with a stand-alone loan at interest rates much lower than a standard credit card.


  • Since there isn’t one ‘package deal,’ buyers can select the options they feel are important and don’t have to pay for things they don’t really want.


  • All prices include tax, installation and delivery.


  • A new Kaufman and Broad home – and the options selected in the home – come with the Company’s unsurpassed, 10-year limited new home warranty.

Each Dream Home Studio will reflect the unique differences in each local market and will be modified based on market surveys to determine product, pricing, options and upgrades. Each year, Kaufman and Broad conducts thousands of consumer surveys to determine how best to fulfill needs and wants of local homebuyers.

"By surveying homebuyers to determine their desires, we’re able to create a retail environment that will engage the homebuyers’ senses and excite their imagination as they select the options to personalize their new home," Mr. Karatz said.

For more information about any of Kaufman and Broad's new home communities, call 1-888-KB-HOMES or visit the Company's Web site at www.kbhome.com.

Kaufman and Broad Home Corporation is one of America’s premier homebuilders with operating divisions in Arizona, California, Colorado, Nevada, New Mexico and Texas. Kaufman & Broad S.A., the Company’s majority owned subsidiary, is one of the largest homebuilders in France. In 1999, the Company delivered homes to 22,460 families in the United States and France. It also operates a full service mortgage company for the convenience of its buyers. Founded in 1957, Kaufman and Broad is a Fortune 500 Company listed on the New York Stock Exchange under the ticker symbol "KBH".

For More Information Contact:
Kate Mulhearn
(310) 231-4015
kmulhearn@kbhome.com
Ken Aurichio, Shandwick International
(212) 591-9722 or kaurichio@shandwick.com

Financial Releases