Survey Reveals Lack Of Real Estate Literacy In The U.S. – NMP
Industry News

Survey Reveals Lack Of Real Estate Literacy In The U.S.

Jun 23, 2020
Man looking confused as he stares at his laptop.
A headshot of Navi Persaud
Director of Events

A survey conducted by Homie, a real estate technology company, revealed that there is a serious lack of real estate literacy in the United States. The survey was conducted by polling 1,000 millennial Americans on topics related to the industry.
 
The survey found that 65% of the respondents were unaware of what the typical commissions paid when selling a home is 6% of the price of the home. Homie believes that this data explains why millennials are more apt to give large chunks of equity away to iBuyers, that charge between 6% and 14% in commission. The survey also found that 42% of respondents believe it is free to use a buyer's agent when purchasing a home. Homie suggests that this lack of information has made it more difficult for sellers to negotiate buyer agent commission.
 
According to the report, 16.5% of the respondents erroneously believe that consumers are legally required to use a real estate agent to purchase or sell a home. Additionally, more than half of the respondents were unaware of the amount of a downpayment required to avoid private mortgage insurance (PMI) and only 13% are confident that they understand the process of buying and selling a home. 
 
"These results perfectly sum up the catalyst behind Homie's mission to simplify the buying and selling experience, and take the guesswork out of real estate," said Johnny Hanna, co-founder and CEO of Homie. "The real estate landscape has left consumers confused for decades, and while confidence in traditional agents is relatively low, real estate literacy may be even worse."
 
Click here to read more from the Homie report.

 
About the author
A headshot of Navi Persaud
Director of Events
Navi Persaud is Director of Events at NMP.
Link copied
Published
Jun 23, 2020
Get the NMP Daily
Non-QM
Home Equity Lending Could Overtake Non-QM In 2027

Lenders report rising second-lien production as homeowners protect low first-mortgage rates

Home equity lending is growing fast, and industry executives expect it to surpass Non-QM in origination volume as soon as 2027."I think equity originations are expected to surpass NonQM originations in 2027," said Tom Davis, chief sales officer at Deephaven Mortgage.The grow...

Continue reading
Analysis and Data
Home Contract Signings Hit Record October Low, Falling 17%

Realtor.com reports a sharp decline in purchase activity as higher rates erode borrowing power

Home contract signings fell 17% year over year in October, reaching their lowest level for the month on record, as higher mortgage rates continued to squeeze buyers out of the purchase market, according to Realtor.com's latest housing report.The annual decline was the steepe...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Industry News
Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Industry News
Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Industry News
Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Industry News
Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Industry News
Oct 09, 2026
Newrez, eXp Realty Form Joint Venture To Target Purchase Business

Revenos Mortgage is set to launch in early 2027, replacing eXp's joint venture with Kind Lending

Industry News
Oct 08, 2026