Clients Don’t Know What You’re Talking About

Dated: June 3 2022

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A MoneyWise survey found top recognition for “closing costs” by two-thirds of respondents, but only 38% know what “mortgage rate” means.

NEW YORK – Watch the jargon you use in real estate. Many Americans are confused by terminology common in the industry, from “mortgage rates” to “down payments,” a new study shows.

More than 56% of respondents flunked a quiz of common home buying terms. A survey conducted by MoneyWise of 1,116 people finds that younger generations – mostly first-time homebuyers – struggled the most.

For example, less than a quarter of Gen Z respondents, who are in their early 20s, could pass a quiz on common terms. Only baby boomers, who may have more real estate experience, typically passed the real estate quiz.

The older the generation, the higher percentage of terms they understand. “Closing costs,” for example, was the most recognized term by 78.4% of baby boomers, but that drops to 64.9% of Gen X, 59.9% of millennials and 46.6% of Gen Z.

Overall customer knowledge of real estate terms

  • Closing costs: 61.8% know what this means
  • Annual percentage rate (APR): 58%
  • Mortgage: 57.6%
  • Appreciation: 53.7%
  • Down payment: 52.2%
  • Offer: 51.9%
  • Interest: 50.0%
  • Mortgage rate: 38.1%

Most people get their real estate information from friends and close family members, the survey finds. Real estate experts and online articles also were helpful.

Gen Z respondents – the youngest age segment active in real estate – tend to tune in to social platforms for their real estate knowledge; 30% of Gen Zers, for example, say they learned about home buying on Reddit and nearly one in four learned about it from TikTok.

Source: “How Much Do Americans Know About Buying a Home?” MoneyWise (April 28, 2022)

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Mr. and Ms. Home Buyer, I will definitely walk you through the entire progress. You will be able to get your real estate license once your transaction is closed. :)

Don't forget to reach out to me, Roxanne Dixon from Dunhill 100 at 516-304-1289; I am your premier south Florida real estate agent.

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Roxanne Dixon

Highly motivated Real Estate Agent with over 8 years of diverse experience in residential(Purchase/Sale), commercial, and investment(Annual Rental, Airbnb, Property Management) estate. Strong analytic....

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