Survey Says Millennials Struggle With Homebuying Knowledge
How much do millennials know about homebuying?
It’s why they need a Realtor®. According to a Lombardo Homes recent survey, 48% of millennials said they cannot confidently define the word appraisal, while a whopping 94% said the same thing about PITI, which is the acronym to represent principal, interest, taxes and insurance. Seventy-two percent said they couldn’t confidently define earnest money and the same with PMI, which is the acronym for private mortgage insurance, said 86%.
Millennials are also struggling with how much housing costs actually are. The report found that a quarter of respondents underestimated their buying means by $150,000 or more. Overall, millennials underestimated what they can afford by nearly $80,000. They also underestimated how much interest would be owed. One-third of respondents underestimated by $200,000 or more in interest, and on average, people estimated $145,000 less than they would owe. Additionally, millennials underestimated how much home values increase by $144,000, with 25% underestimating by $100,000 or more.
More than three-quarters of millennials (76%) do not know if property taxes in their area are high, medium or low, 59% don’t know the seller pays the real estate agent fees and 52% don’t know what the average home in their area costs. Additionally, 47% said they do not know what a good interest rate is.
Lack of knowledge isn’t the only thing stopping millennials. Seventy-one percent said they are struggling to save for a down payment because their rent is so high. Eighty-five percent said they can’t afford a down payment, 67% can’t afford something they want to buy and 63% said they don’t want to be tied to one area.
Topics
Share this post
Member Discussion
Recent Articles
-
Winter Maintenance: Chimney and Heating Tips
- October 23, 2024
- 3 min. read
Experts share their insights and advice for the maintenance of chimneys and HVAC systems.
-
Pennsylvania Median Home Sales Price Dips Slightly, More Listings Hit the Market
- October 22, 2024
- 2 min. read
The Pennsylvania Association of Realtors®’ September housing market report shows home prices have come down a bit, but the good news is there are more homes on the market.
-
Generation E(xpat)? More Gen Z, Millennials Moving Abroad
- October 21, 2024
- 1 min. read
A recent survey showed 87% of Gen Z and millennial workers were planning on becoming digital nomads – people who work remotely while traveling.
Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.