Are Lennar Homes Any Good? Consider These Benefits & Drawbacks Before Buying

Home is where the heart is, and according to the National Association of Realtors, it's also where most of our money goes. The statistics are staggering: 80% of homebuyers finance their purchase, 82% think purchasing a house is a good investment, 90% rely on their real estate agent for information, and 100% use the internet to search for their next home. 

Homebuyers have to navigate a complex market, where prices and interest rates remain high. In the face of the country's chronic housing shortage, several national developers including D.R. Horton, Pulte, and Lennar are rapidly building in an attempt to meet demand. Lennar Corporation anticipates building 80,000 homes this year alone. But is this actually a good time to invest? Are Lennar homes any good? It's important to consider the benefits and drawbacks before buying.

According to Builder Online, Lennar is the second-largest residential construction corporation in the country. The company builds single-family homes, provides mortgage financing including FHA and VA-guaranteed loans through its financial services arm, builds and manages multifamily rental properties, and invests in technology companies including Opendoor. Lennar says it offers a stress-free experience for first-time buyers and active adults, encapsulating that message in its tagline: Everything's Included. Its homebuyer resource blog promises something for everyone, with floorplans and designs that reduce buyers' concerns because they are "all priced at unheard-of values."

With a long-awaited interest rate adjustment on the horizon, new construction homes may be a buyer's best bet. Lennar has thousands of new homes for sale across the country, ranging from a 661-square-foot tiny home in San Antonio priced at $139,999 to a 5,122-square-foot home in Miami that was just reduced to $3 million. A myriad of floor plans are available, from the Tutti, which features a multifunctional kitchen, to the Garnet, an open-concept design. Along with selecting a floorplan, some buyers can choose flooring, fixtures, and smart home features like Ring doorbells and GE kitchen appliance upgrades. Many communities have pools, clubhouses, sports courts, playgrounds, and other amenities.

Understanding the entire home-buying process can be more difficult than finding the perfect home. One way Lennar works to overcome this hurdle, especially with first-time homebuyers, is to handle both financing and design. "Forget the challenging task of finding a reasonably priced, quality builder or managing a new build all on your own," the company advises in one blog post. 

In another, Lennar says the homebuying process happens in a few easy steps. First, interested buyers can talk to an Internet Sales Consultant about their desired home. The consultant will share the buyer's information with a New Home Consultant to discuss the timeline, price range, and preferences. Lennar Mortgage then becomes available, although not required, to finance the purchase. For closing, Lennar Title Associate and Lennar Insurance Agency services will also be made available.

Unfortunately, it hasn't been "Home Sweet Home" for many Lennar homebuyers. In 2018, a class action lawsuit was filed against the company, alleging that Lennar "misrepresents the homes that it provides for sale in order to deceive consumers" and that it made representations as "part of a common scheme to mislead consumers and incentivize them to purchase residential units at a higher value than in fact worth." Another lawsuit was filed in 2022, alleging mold and ventilation problems.

Meanwhile, Lennar has a TrustPilot score of just 1.8, with over 80% of customers rating the company one star. Several complained of quality issues, schedule delays, and financial disputes, telling potential customers to beware. Some buyers have been so upset with their experiences that they've made lengthy YouTube videos and Reddit posts describing their regrets. The Better Business Bureau has received over 1,000 complaints about Lennar within the last three years.

When you're ready to make a move, it's important to do your research. Consider the benefits of buying an already-built home. If your heart is set on new construction, take time to research builders and read reviews online. Explore your options when it comes to financing. Whether you decide to work with Lennar, another major homebuilder, or a local contractor, pay for an inspection before the drywall is installed to catch any serious problems that will be hard to identify and fix once they're covered up. Meet, interview, and develop a positive relationship with your project manager. And don't forget to get everything in writing.