A recent Zillow survey revealed that over 42 percent of home buyers think that home values will rise by around 7 percent every year.
However, this notion does not relate to the actual market and would be considered high even during pre-crisis times. In fact, home values normally rise between 2 to 5 percent.
While this survey points out a big misunderstanding many home buyers’ have of the real estate market, the average consumer is becoming savvier about the process. For instance, 87 percent know that closing costs are negotiable. Still, concepts such as private mortgage insurance, homeowner’s insurance, the purposes and differences of appraisals vs. inspections and the point at which ownership of a home is granted remain unclear.