Buying a house during residency? Be prepared for a seller’s market

Today’s housing market makes buying a home a challenge for first-time owners, but it’s far from impossible. A recent webinar from PhysicianLoans – a preferred home loan provider for AMA members – offers insights into the market and what buyers can do to become more competitive.

Exclusive to AMA GME Competency Education Program members, the webinar features advice from three real estate agents operating in different markets across the country. You can check it out now. Here’s a look at some of the top takeaways.

Market conditions

Monthly inventory supply – the measure of how many months it would take to fully sell the current inventory of properties in the market – is generally the barometer of market conditions. In a neutral market this number fluctuates between four and five months. Today this number is essentially between one and two months, depending on the location.

“For a buyer, that means that as soon as a home comes on the market, you want to go out and see it,” said Delinda Crampton, a real estate agent at Berkshire Hathaway HomeServices Nevada. “Many houses are gone in one to three days. It’s unusual right now to see a home in the past week. Right now we have a little over a two week supply of homes in Las Vegas. That means that buyers come strong and have to do their best. “

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Be ready to move

The lack of home supplies requires decisive action. That means working with a lender who can accommodate a doctor’s unique needs in training and getting pre-approved approval before you even start viewing any home.

“A big part of that is having all of your ducks with your lender in a row and having good communication with your broker,” said Andrew Undem, a Baltimore real estate agent for Berkshire Hathaway HomeServices. “When your lender gets all of your documents and not just a quick credit check for pre-approval, give them everything: tax returns, bank statements, anything they’ll need at some point anyway. If you are really prepared, you can start making stronger offers with more clarity and you can arm the professionals around you to show the seller that you are a slam dunk. “

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Know what to expect when you walk in

Due to market conditions, buyers can lose properties they have made offers and they will not have much leeway to negotiate. According to the real estate agents attending the webinar, buyers could be well served if they look at homes slightly below their maximum range and expect to sell at more than asking prices.

“You have to have realistic expectations in this market,” said Deborah Fagan, a southern California real estate agent for Berkshire Hathaway HomeServices. “If you’re in a mid-range price range and you’re getting those homes that have 16-20 listings, you may need multiple listings to get into a home. We try to contract you within your parameters, but there are often cash offers to compete with. “

PhysicianLoans is the AMA’s preferred provider of home loan and real estate brokerage services. The company offers less cash financing, no personal mortgage insurance, and expanded underwriting policies compared to standard loans. AMA members who purchase a home using a PhysicianLoans home loan or the DRS Agent Match service receive three free months of a home warranty plan.