OK Wes- This one is for you—
I was going to take Saturday off, but I received a link to the National Association of Realtor’s Blog from Wes W., who wondered what Housingdoomers thought. It appears that Realtors are feeling a little insecure lately, and were discussing "Why the Internet hasn’t made buying homes more like buying an airline ticket." Someone decided to have a little fun with it, and offered ten ways they differ:
10. You don’t have to live in an airplane seat for an average of 6 years.
9. Nor will you be paying for it for 30.
8. All the seats are the same (except perhaps for the dreaded middle).
7. There are no schools for your children on that flight from New York to LA.
6. You don’t have to worry about whether your furniture will fit in that aisle seat.
5. The only inspection involved when you fly takes place at airport security.
4. If you seatmates are encroaching on your space, you only have to put up with them for a few hours.
3. You don’t have to get a lender’s approval – complete with three years of W-2s, a list of assets, and a credit history report–to take that trip to Maui (although with today’s gas prices.
2. Once you buy your ticket, it’s unlikely the airline will decide the deal’s off.
1. Most people don’t get emotionally attached to their seat.
Ever the contrarian, I offer my own "Why I need more help with my airline ticket than buying a house."
10. I’ve been living in homes all of my life- I know what I want. On the other hand, I’m not sure if 16E is in the emergency row, center, etc., and could use some help- even if I won’t be using my seat for the next six years.
9. I refuse to pay for a house for 30 years, if I’m only living in it for 6. (I haven’t seen that loan product yet, but I wouldn’t be surprised.)
8. If you think all the seats are the same on an airplane, I’ll trade you my seat in the back where the seats don’t go back, for your seat in first class.
7. If someone could get me a kid’s meal and crayons for my children on the plane, that would be a help. I prefer to do my own research to find a school.
6. I don’t need any help with furniture on the plane, but if you could find me a place to put my carry-on.
5. I have a great inspector I use for real estate purchases. (A buyer I had once used him on my property- he didn’t miss a thing.) I always seem to have trouble with those little cards you fill out for customs though. I hate figuring out the exchange rate, and trying to remember what I paid for that vase.
4. When I buy a home, I can choose my neighbors, but I can’t always choose my seatmates on a plane. (Thank heaven for the sympathetic flight attendant who can move me, or have that kid in the next row turn his MP3 player down.)
3. My generally suspicious nature makes me shy away from using a Realtor’s recommended lender, title agency, etc.- I don’t like staying up nights worrying they aren’t independent and working for me. They have a point about the gas prices though, if I took out a 125% HELOC, I could remodel the bathroom while I’m at it–then again, maybe not.
2. You don’t fly much, do you? All too often my flight is cancelled, or the plane is overbooked. It’s no big deal though if a home seller backs out- there are 49,999 other homes for sale in the Phoenix area.
1. I don’t get emotionally attached to my seat, but when I can get a whole row to myself
So there you have it Housingdoomers. Wes and I put it to you- what do you need more help with, your home purchase or your airplane ticket?
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Airline Industry Boom or Doom?
1. I do not believe that airline tickets are quite as lucrative as houses, no one ever talks about an Airline ticket Bubble.
2. When flippers do catch on however, airlines will not be able to keep up with the demand, and they can only over schedule so far until more planes are being built.
3. Banks do not recognize airline tickets as an asset, only a service. When they catch on to big bucks to be made, they will no doubt introduce heaps of loan programs to entice new buyers.
4. The best thing is you can flip an airline ticket instantly, right over Ebay! No waiting 30 – 60 days, dealing with realtors, loan officers, and title agencies while your ticket value goes up over what you sold it for.
5. You can take a home equity line of credit on your house, but not a vacation package. When ticket prices start going through the roof this could very well change.
6. More jobs could be created with an airline boom: Travel Agencies, Ticket Cashiers, Air Traffic Control, Pilots, Crew, Security, you name it!
7. An Airline boom would be good for the economy, just like the technology and housing boom before it.
8. Purchasers may put a passenger in a seat for no less than half the purchase price to get occupancy.
9. If the ramped increase in ticket purchases results in more vacant seats per flight, not to worry because big money is being made.
10. If the airline industry ever cools down, we can count on the News Media to give an overly optimistic report.
Thanks for more insight. Personally, I dont think I need help with either one…. as maps and etc of plane interiors are just as available online as are reviews of school districts. However, I do need a small go between– either a bank or a lawyer, just to handle the money aspect (visa for the airline and a closing a loan for the house). The rest of the info is out there online and free to anyone who cares to look for it. Would I pay 10k for help? No way.
Why the Internet hasn’t made buying homes more like buying an airline ticket.
Personally, I think it’s only a matter of time before a more cost-effective transaction model is developed for real estate; no realtor is worth 6% of a $500K home. There’s already been talk of opening up all MLS data to the public. If the NAR loses control of data, they could face competition when an online business undercuts their commisions. Many realtors have hardly earned our trust and that 6%; it’s only a matter of time.