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Friday, October 28, 2011

Zillow: Buyers over optimistic on home value appreciation

More than 42% of prospective homebuyers polled by Zillow believe home values will appreciate by 7% annually in the years ahead.
"It's troubling that we're still in the midst of one of the worst housing recessions in history, and yet prospective buyers continue to have such high expectations for home value appreciation," said Stan Humphries, chief economist at Zillow
 And we are really in trouble, since homebuyers are not understanding some housing basics.
Roughly 41% of respondents believe purchasing private mortgage insurance is mandatory, no matter the down payment. Typically, lenders require PMI when less than 20% down is given.
And 56% of those polled said appraisals determine whether a home is in good condition, which is something an inspection does.
Nearly half of those surveyed said a prospective buyer  owns a home as soon as the contracts are signed, when in fact the purchase and sales agreements kicks off the closing phase, which can be lengthy.
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