Consumers are knowledgeable about some aspects of the real estate process, but gaps in their housing knowledge persist, particularly when it comes to understanding the mortgage process as it relates to appraisals, credit scores, and federal loan programs, according to ERA Real Estate, which has a 13-question “Real Estate IQ” quiz available at its site.
Home owners and people over 30 scored higher than non-home owners and people under age 30. Overall, the average score on the test was 73 percent.
Home owners who purchased a home within the past year scored an average of five points lower than those who had bought a home more than two years ago, according to the results. Charlie Young, president and CEO of ERA Real Estate, speculates that is a reflection of last year’s fast-paced market, which was marked by price increases, bidding wars, and rising mortgage rates that increased urgency when completing a deal. The rush may have caused some home buyers to lack the time to fully understand the process, even though they were going through it.
Most of the respondents were familiar with foreclosures, short sales, and homeowner’s insurance, according to …read more