ARIZONA DAILY STAR: Weds., May 21, 2008

KB Home offering 'price protection'

Beleaguered builder KB Home is making a play for consumers worried prices may fall in the months between signing a contract and closing on a new home. The builder is offering a "price protection" clause in contracts, providing buyers with a lower price if the price drops while the house is under construction. KB Home has tried the plan in other markets and recently expanded it to Tucson, said Craig LeMessurier , a KB spokesman.

Along with the price guarantee, KB Home is also offering to cover fees for locking in mortgage interest rates during the construction process, but that service is available only through KB's preferred lender, Countrywide KB Home Loans , a news release said.