Los Gatos Weekly-Times
Homes
The Real Deal
Buying a home, not an airline ticket
There's been much debate about why the Internet has not made buying a home more like buying an airline ticket.
In the past 10 years, the Internet has slowly replaced travel agents, as anyone can now purchase a ticket on any airline to any destination and reserve a seat online.
Although there are Internet companies that now provide free home-value estimates and are attempting to provide the same service Realtors do, buying a ticket for seat 16C is just not the same as buying a home.
The Internet has created more informed consumers, but it still can't cure an illness, protect you in a lawsuit or help ensure the biggest investment you'll ever make is a good one.
Here are the top 10 reasons why buying an airline ticket and buying a home are different:
10. You don't have to live in an airplane seat for an average of six years.
An airplane seat merely gets you from point A to point B in a matter of hours, and then the ride ends. Since in many cases families intend to live in a home for a long time, even a lifetime, the knowledge and experience of a Realtor is valuable to a homebuyer.
9. You won't be paying for an airline ticket for the next 30 years.
You can charge the price of a plane ticket on your credit card and pay off the amount slowly, but purchasing a home requires a more substantial amount of money and will take you longer to pay off.
8. All the seats in an airplane are the same, except perhaps for that dreaded middle seat.
Homes vary in price, size, location, structure and style.
7. There are no schools for your children on that flight from New York to Los Angeles.
Couples with children consider the quality of the school district in which a home is located.
6. You don't have to worry whether your furniture will fit in that aisle seat.
You need to consider the kind and size of furniture that will fit in the different rooms of a new home.
5. The only inspection involved when you fly takes place at the airport security checkpoint.
Before purchasing a home, you hire a home inspector who is trained to identify material defects that affect the value, desirability and safety of the dwelling.
4. If your seatmates are encroaching on your space, you have to put up with them for only a few hours.
Through knowledge, experience and research, a Realtor can give you details about a location or a specific neighborhood.
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.
The typical home sale today involves more than 20 steps after the initial contract is accepted to complete the transaction. Much of what needs to be done before the closing is the responsibility of appraisers, loan processors, attorneys and inspectors--the Realtor coordinates those responsibilities, to ensure others do their jobs correctly and that closing isn't jeopardized.
Many steps between contract ratification and closing involve the cooperation of both buyer and seller, and Realtors on both sides of the transaction will troubleshoot and keep everyone on track.
2. Once you buy your ticket, it's unlikely the airline will decide the deal's off.
Realtors have extensive experience handling problems that may arise between contract and closing. They can anticipate difficulties and address them in time to ensure a smooth settlement for all involved.
1. Most people don't get emotionally attached to their seat.
Selling and buying a home can be a very stressful experience for both parties.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to rmeily@silvar.org.
