John Ramey: One of the things I always try to tell medical students and residents is you really, like you said earlier, you need to know the neighborhoods that residents live in because if you pick a neighborhood that residents like to live in, then the likelihood you’ll be able to sell to a resident increases a lot. Also a lot of times the values of those neighborhoods go up more too, so. We pick good neighborhoods that people like to live in, that were close to the hospitals that we didn’t have to make long drives in every morning.
Josh Mettle: Well that’s the perfect transition to my next question, and you alluded to it earlier. But I think there’s got to be a strategy and you offered some great advice in the blog post that you and Mikki had authored that I read to residents and fellows about being very cognizant about the surrounding area values and the values of homes surrounding your home and how that strategy plays into reselling easily and probably avoiding the biggest pitfall or landfall of all, which is you get to the end of your training and you go to sell and you find yourself in a negative equity position. Then you’ve got a long haul of trying to figure out how to get out of that, so give us some advice on how to make sure that people don’t make that mistake.
John Ramey: I think it’s several things to think about if you’re buying a home for a short term. I hear a lot of advice on these doctor websites and stuff that – don’t buy during residency and don’t buy if you’re going to be there for short periods of time, but I think just like stocks, each person is an individual and yet you look at your individual situation. When we formed our real estate company, Healthy-Realty, we picked the name for a couple of reasons.
One we were focusing on healthcare profession, but another thing, we kind of started our company when the recessions started so when we wanted to help people make healthy decisions and that’s what we saw over the years that a lot of medical students or residents didn’t make great decisions. One of the best decisions for a resident may be to rent a house. It may not be to buy, and we’re totally fine with that if that’s what good for that individual. They might not have the credit scores to get a loan. They may have other debt they need to deal with. That’s the first thing is make the right decision for you and the right decision is not always to buy, maybe to rent; and so that’s one of the first things.
If you make the decision to buy, pick a good neighborhood, pick a neighborhood that’s close to the hospital. Pick a neighborhood that resells easily. Pick a great house. One of the best strategies for buying a house a lot of time is picking one of the least expensive houses in an expensive neighborhood. You have a lot more room for appreciation than you do if you pick the most expensive house. We see that all the time that resident wants a really nice house and they buy the most expensive house in the neighborhood and 3 to 5 years later, they can’t sell it because they’re the most expensive house in the neighborhood. So that’s one thing to look at.
Then location does matter. You don’t want to pick a house most of the time on a real busy street. If you’re on a major highway, that may make it harder to sell. We have a client currently who didn’t listen to our advice a few years ago and they bought a house on a major street. The house is one of the most beautiful houses where we live but nobody wants to buy it because it’s on a busy street, so again you got to kind of look and you look at how long the house has been on the market. If it’s been on the market for 6 months, a year, there’s probably some reasons that other people didn’t want to buy that house.
With low inventories of homes in most areas in , you are a more attractive buyer if the seller knows your financing is a sure thing. We recommend getting a full income and credit approval, which is like having a blank check up to the amount you are approved for. Give a call at or here. Let’s get you started!