Survey Reveals Buyers’ Lack of Basic Homeownership Concepts

Owning a home is often considered a cornerstone of the American dream, symbolizing stability, independence, and a sense of accomplishment. But despite the widespread aspiration for homeownership, many Americans lack the necessary knowledge of basic concepts integral to this dream.  

Lombardo Homes is dedicated to collaborating closely with them, crafting homes that seamlessly harmonize with their unique lifestyles. In a new study, they highlight the gaps in knowledge of many Americans when it comes to home-buying, renovating, and building.  

From misconceptions about mortgage terms to unfamiliarity with home maintenance essentials, the study reveals the need for accessible and comprehensive homebuyer education to empower individuals on their path to realizing the American dream. 

As for America’s knowledge about homeownership, there’s also some room for improvement. Lombardo asked 25 multiple-choice questions related to being a homeowner and used their responses to calculate a grade percentage on an A-F academic scale. To answer a question correctly, more than 50% of respondents had to select the right answer on the quiz. Unfortunately, America has some studying to do as it only scored 14 questions right and ultimately “failed” the quiz

Respondents received its best marks in the home buying section, answering 7-of-10 questions correctly. America knows the purpose of a pre-approval letter, what home equity is, the current interest rate for a 30-year mortgage, and who traditionally pays the real estate agent’s commission on a home sale. But quiz takers underestimated how much it costs to buy a home in 2023—according to the Federal Reserve, the median home sales price in the first quarter of 2023 was $436,800. Only 24% answered that correctly. 

The worst scores came from the section about home renovating and maintenance, with only 3-of-7 questions answered correctly. While respondents did know what HOA stands for (homeowners association), and the average lifespan of a standard asphalt shingle roof (20 years), respondents didn’t know how long a traditional tank-type water heater should last (8-12 years), or the name of the material typically installed directly over the exterior wall framing of a house (sheathing).  

Those surveyed did slightly better in the section about home building, answering 4-of-8 questions correctly, proving knowledge of what a home appraisal is, that a home warranty provides coverage for home appliances, and what closing costs are. However, America didn’t know what a “punch list” is or the minimum clearance between a kitchen countertop and overhead cabinets (18 inches). Respondents also underestimated the average cost to build a new home in 2023 (without the cost of land). According to Real Estate Witch, it costs $446,000 to build a home from scratch this year. Only 27% answered that question correctly. 

Click here to view the study in its entirety, including breakdowns of scores by generation.