MADISON, N.J., April 23, 2014 /PRNewswire/ -- Homeowners
and people over 30 scored higher on a 13-question "Real Estate IQ"
quiz than non-homeowners and people under 30, according to ERA Real
Estate, a global franchising leader. Among all respondents, the
average score was 73%, demonstrating a consumer knowledge gap that
underscores the importance of working with a real estate
professional.
The majority of respondents were familiar with foreclosures,
short sales and homeowner's insurance, but the survey results
indicate that real estate agents have an opportunity to serve as a
resource to help consumers better understand the mortgage process
as it relates to appraisals, credit scores and federal loan
programs.
"The business of buying and selling a home has become
increasingly complex and multi-faceted as we contend with the
checks and balances put in place following the Great Recession,"
said Charlie Young, president and
CEO of ERA Real Estate. "Our findings suggest that real estate
professionals can provide an invaluable service to their clients by
not only educating them on many of the processes involved in buying
or selling a home but also by connecting them with experts in
related industry services."
While the majority of respondents (95%) knew what a foreclosure
was, only 25% knew that the Case-Shiller Index tracked home prices.
This knowledge gap in terms of real estate market indicators
provides real estate agents with an opportunity to educate their
clients about local market conditions to inform both the buying and
selling of homes.
Surprisingly, homeowners who bought a home within the past year
scored five points lower than those who had bought a home more than
two years ago. Young believes this is likely a reflection of
last year's more fast-paced market characterized by rapid price
increases, bidding wars and a summer spike in mortgage rates which
created a greater sense of urgency in completing a deal, leaving
less time for understanding the process.
Other findings from the ERA Real Estate IQ quiz include:
- Overall, the younger the respondent, the less knowledgeable
he/she is about the topics. Conversely, the older the respondent,
the more he/she knew. In addition, people who do not own a home are
less knowledgeable than home-owners.
- More than 90 percent of respondents knew the difference between
home owner's insurance and a home warranty, and knew that home
owners' insurance was different than PMI.
- Only 67 percent of non-homeowners knew what an appraisal was
compared to 81 percent of homeowners, another indication that
education on the mortgage process is an opportunity for agents to
provide superior service.
- Overall score on the quiz was 73%. Respondents under 30 scored
an average of 62%, while people over 60 averaged 78%. Homeowners
scored an average of 76%; non-homeowners averaged 64%.
Take the ERA Real Estate IQ Quiz: Click here to
take the quiz to find out your Real Estate IQ.
Methodology: ERA Real Estate, in conjunction with Test Track,
Inc., a consumer research company, conducted an online survey of
consumers aged 21-75 to ascertain respondents' knowledge in various
aspects of the real estate industry and transaction. The survey was
fielded between from Jan. 13-20, 2014
and the results are based on responses from 1,000 respondents
across the country.
ERA Real Estate is an innovative franchising leader in the
residential real estate industry with 40 years of experience in
developing consumer-oriented products and services.
The ERA network includes approximately 31,000
brokers and sales associates and approximately 2,300 offices
throughout the United States and
33 countries and territories. Each office is independently owned
and operated. ERA Real Estate is a subsidiary of Realogy Holdings
Corp. (NYSE: RLGY), a global leader in real estate franchising and
provider of real estate brokerage, relocation and settlement
services.
Media Contact:
Melissa Drake
973-407-7904
melissa.drake@era.com
Photo -
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SOURCE ERA Real Estate