Majority of Consumers Lack Understanding of Home Renovation and Maintenance

A majority of homeowners don’t understand home renovation and maintenance, according to a recent study. The 2023 Homebuyer Study showed that many lack knowledge about basic concepts in homeownership.

The study looked at American’s knowledge of homebuying, home building and home renovating and maintenance. The study shows that most Americans aren’t aware of water heater lifespans and the materials used on exterior walls.

“One of the most surprising survey results was the lack of knowledge regarding the costs associated with homeownership. There’s an obvious knowledge gap when it comes to understanding the financial aspects of buying a home, which is clear by respondents underestimating the median home sales prices in the first quarter of 2023. Only 24% of Americans were able to correctly guess this median price,” said Melissa Cervin, vice president for Lombardo Homes, who conducted the study.

This study was prompted to see where knowledge gaps lie among homeowners and among the different generations. Homebuying can be a daunting task and there’s a lot of basic knowledge that many Americans lack when it comes to the process of buying a home or building a home and then in the early years of homeownership.

Twenty-five multiple-choice questions related to being a homeowner were asked, however, most failed the quiz, scoring only 14 out of 25 questions correctly.

The best scores were in the homebuying section, with respondents answering seven out of 10 questions correctly. Most answering the survey understood what a pre-approval letter was, 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. Many underestimated how much it costs to buy a home in 2023.

“To help consumers understand the process of homeownership, real estate professionals can provide comprehensive education, clarify mortgage terms, offer guidance on home maintenance and thoroughly explain the building process. These efforts can assist in explaining the various aspects of the home-buying process, including costs, financing options and market trends, especially when it comes to necessary topics like mortgages,” Cervin said.

She also noted, “This study also indicates there are gaps in knowledge among the generations. Real estate professionals should consider tailoring their educational efforts to address the specific needs and knowledge gaps of each generation. By understanding the characteristics and preferences of different age groups, professionals can provide more relevant and engaging educational materials.”