When buying a home there are many things that need to be done to complete this sometimes complex transaction. The question “What are the top three things I need to know when or get done when buying a home?” was asked of me last week while speaking with a potential client. I thought what a great question and answered him in this way.

Get “Pre-approved”; not pre-qualified

Getting pre-approved will give you the strongest negotiation position in a buying transaction. Getting pre-qualified is basically answering a few questions with a lender and based on your answers and credit information you receive a pre-qualification certificate from the lender. In today’s market many of the sellers understand the difference and would look at this certificate as meaningless because none of the information has been verified. Obtaining a pre-approval from bank means that all the information is verified, documents are presented such as tax and income records, and that you are approved for the loan amount based and only contingent on an appraisal for that property.

Sell Your Property before Buying another Property

Again this gives you the best possible negotiation and bargaining that there is. There is nothing worst than finding that next dream house and having to “wait” or “worry” about having to sell your property. Having to wonder if it will sell and for how much. Even worst yet, having to sell your home for less money because you are in a rush now. If you sell your property first, you know that the mortgage is paid off which is great for financing your new home. Secondly if your home is sold you know how much cash you have to put into your next home. And finally selling your home first gives you a huge peace of mind when purchasing that second home and that sale of your home is not part of the contingency you use to rationalize the next purchase.

Take Your Time and Leverage Negotiations

Once you sell your home you will have time to look for new home. Even if you are in a temporary housing situation, you wills still be much better off and have the time to look and negotiate. I know it is counter intuitive for a Realtor to say don’t buy the first thing you see, but I’ll say it anyways. Don’t buy the first thing you see. I know that properties that are a great deal are selling very fast and there are strategies you can use to secure that property but there is so much out there. Have your Realtor set you up with free Multiple Listing Service like Listing Book so you can search some of the properties that are out there. Take time on your own to do some research. Have your Realtor send you properties as they go on the market. Do your homework and then go out with your Realtor to look. Taking your time and not feeling rushed will eliminate the exposure of being “pushed into a property”. You need to find the property that is going to make you happy.

Buying a new home is very exciting and at times can be a little stressful. It is much less stressful if you set yourself up with the leverage necessary to negotiate the deal better. Remember that success comes from putting yourself in the best light.

Jason M. Jakus is a licensed realtor for Leisure American Realty, a full service Real Estate and Property Management company serving the beaches and surrounding areas of Lee County. Their office is located at 2450 Estero Blvd., Fort Myers Beach FL 33931. For more information on this or any other real estate or property management subject contact Jason at 239.463.3178 or email RealtyInfo@LeisureAmerican.com.