Cars vs. Houses: Same, Same but Different?

When I moved to Colorado in 2018 and started looking for jobs, I seriously considered selling cars. I was a Hot Wheels kid growing up and could identify a Peugeot by touch before I could even read. I quickly realized that I would much more enjoy the process of working with my people to buy and sell homes (besides, not all of my friends would want to buy just a Subaru/Mazda/BMW etc.). The home buying process is longer, more relationship-driven and without question, a more impactful and important decision that deserves extra support and care.

 

I sold my beloved Mazda yesterday after having it listed for three weeks and naturally my brain has been comparing and contrasting the processes. So here it is, Cars vs. Houses: Same, Same, but Different?

 

The Buyers: I had a slew of characters flooding my FB Marketplace DM's that are nearly identical to the various profiles of those throwing in offers for housing. You have the first-time buyer, the first-time buyer with Parental financial backing, all cash shoppers, wholesaling low-ballers, and the financed common man.

 

Scarcity: Low inventory and pricing are common themes across both commodities, and with this, it's a good time to sell.

 

Leasing/Renting vs Owning: I bought the car for $11,500 and sold it yesterday for $11,000 after four years and 55k miles. Tell me, would I have ever made such an economic return if I had leased a newer, cuter CX-5? I don't think so. The same goes for renting; long term you are not gaining any stake of ownership and sometimes getting an older car/house that meets your needs is the best investment you can make.

 

Appreciating vs Depreciating: Chip shortage aside, the housing market and car markets are on entirely different historical trajectories.

 

Longevity: While the average American owns a car and a home for 8 years, nothing beats inflation like locking in your housing payment for 30 years. Seldom do cars last thirty years, but hey, here's to trying.

 

Wealth Building: The Average net worth of a homeowner is $255,000 vs $6,300 for that of a renter. There are very few cars that actually build wealth (my Mazda was not one of them). Owning a home is one of the best things you can do in terms of long-term wealth building.

 

In short, homeownership rocks and cars are merely ways to get from A to B.

 

Still, I'll end with this. Pictured below is my first picture with the Mazda. I see a 24-year-old chock full of enthusiasm, naivety and obliviousness to the difference between a $20 and $40 haircut. It was a time of my life when Real Estate was way more pain than pleasure. To pay rent in the Grove Street basement, I would turn the Lyft Driver app on and say, "Guess I've got to drive myself out of this one." I am nostalgic about the sale because this white car has been one of the few constants in a dynamic and ever-changing four years both professionally and personally. It was there where I would drive to the mountains to reframe during the first year of sale-less Real Estate, there to hear me scream "Say Yes to Life!" when I went under contract for the first time and was (literally) the vehicle that carried maybe a bit too much time to my renovated duplex.

 

The silver lining is that I am so proud of how I have matured during the tenure of the Mazda. The last three weeks have also made me know more than ever that selling homes, not cars, is how I want to spend my days. So today, as I mark my four-year anniversary of being a Real Estate Agent, thank you to all of you for trusting me, referring me, and supporting me; I wouldn't be here without y'all. And like always, let me know if you ever need anything, whether that be advice with homes, cars or barbers.