As a potential buyer of real estate, you are smart to seek the assistance of a real estate professional before purchasing your home. This selection is VERY important. The agent you choose can be the key to this important process being a smooth one. It should be known that the real estate professional you choose can assist you by showing you homes listed by his/her own agency, PLUS all other agencies in the area. All agencies in our area co-broke with each other, which means they allow each other to show and sell their listings. This eliminates the need to work with several different agents, and allows you to develop a good working relationship with an associate that you trust.

It is very important that you work with a professional who understands the market, pricing, and the different types of loans available. The professionals at FULLER & ASSOCIATES REALTY, LLC are all members of the National Association of Realtors, a group of agents and brokers with a strict code of ethics and advanced education. This membership obligates them to be fair to all parties involved in a transaction, be it a Buyer, Seller or Cooperating Agent.

Your REALTOR will listen to your desires in your dream home, and research all the area properties that fit into that category. Then they will provide you with a complete list of prospective houses. After reviewing the list, you may determine which houses you would like to view. The REALTOR will line up the appointments and attend all showings with you.

Licensees, by law, in Nebraska are considered to be buyer limited agents unless they have entered into written agreements to represent sellers or act as dual agents. As a buyer, you are not required to enter into a written agreement in order for the licensee to represent you, but you will be asked to enter into such agreement upon initial contact with a licensee. This agreement is entitled "Brokerage Relationships in Real Estate Transactions". This form discloses the type of agency relationship that you will be under with that licensee.
return to top

The real estate professional will ask you questions about what you are looking for in a home, and what your financial situation is. This is called "qualifying the buyer". You will need to visit with a lending institution of your choice to determine your financial condition. That lender will help you to decide what price range of homes you should be looking at.

There are usually two basic rules on affordability. One is that you can afford about 2.5 times your annual income, and the second is that you should be able to spend roughly 30% of your monthly earnings without over extending your budget. Your proposed monthly housing expense and total monthly debt service combined cannot exceed approximately 36% of your gross monthly income. Your lender will also discuss with you the amount of a down payment that will be required, plus an estimate of loan costs. There are many different types of loans, and your lender will discuss these with you at length.

The real estate associate that you choose to work with will help answer any questions you might have concerning this process, and may even be available to attend the pre-qualification interview with you if you so desire.  return to top

Sellers are required to provide a Property Condition Disclosure Statement about their home when they list the home. Your real estate agent can provide you with these disclosures on any property that you are interested in. These statements are only required on residential property with one to four dwelling units on it. These Disclosure Statements will give you information about the property, and need to be reviewed by you prior to making any written offer.

There is also a Lead-based Paint Disclosure Statement which is necessary on any home built in 1978 or before. This requires the Seller to disclose any knowledge he/she has regarding the use of lead-based paint or paint products in the home.  return to top

There are many things to consider before making an offer to purchase a property:

Earnest money is a deposit you make indicating your intention to follow through on the offer. The broker, holds the deposit in escrow. It becomes part of your closing costs. You should be aware, as either a buyer or seller, that designated brokers are required to handle the funds as directed by the Nebraska Real Estate License Act and Rules and Regulations. In general, brokers will require a mutual release between both the Buyers and the Sellers before they can release the earnest deposit to either party.

Contingencies are conditions or provisions written into a purchase agreement that requires the completion of a certain act or the happening of a particular event before the contract can be binding. Often times a Buyer will submit an offer contingent on obtaining the necessary financing, on selling his/her existing home, on inspections being conducted and their findings approved, or on the property appraising for the purchase price. A Buyer can add as many contingencies to a contract as they deem necessary, however, the more you have, the less likely the seller is to accept your offer outright.

Easements, Encroachments, Taxes, Covenants are all things that need to be considered when making an offer to purchase. Be sure to ask your real estate professional questions about all of these items when considering a property. If he/she doesn’t know the answers, make sure he/she does the necessary research prior to making the offer. 

The Offer to Purchase will usually be written on a standard Purchase Agreement by the licensee, reviewed by you and then signed and dated. You must make sure that you understand what is stated on the Offer to Purchase, because once it is signed, it becomes a binding contract. If you have any questions or concerns regarding the contract, seek the advice of an attorney prior to signing it.

The contract must clearly state the sale price, payment provisions, closing and possession date, any contingencies, the earnest deposit amount. It also needs to clearly define the property’s legal address and any personal property that is included in the contract. It will need to state how long the seller has to decide to accept the offer.

Once this contract is signed by you, the Buyer, then your real estate agent will present the offer to the listing broker or agent. That agent will then in turn take it to the Seller. This begins the negotiation process. Any counter-offer or modification from the Seller makes the original contract null and void. However, if the Buyer accepts the modifications, the contract is considered valid and binding.  return to top

When the Purchase Agreement is executed, or in other words, all parties have signed it, then a third party such as an attorney or title insurance company may be used to close the transaction. In these closings all parties must authorize the broker to transfer the earnest money deposit to the third party closing agent, and the Buyer and Seller must agree on the terms on who will pay for this service. In most cases, the fee is split between the Buyer and the Seller.

At the time the Offer to Purchase is written, the licensee must prepare a written estimate of closing costs for you to review on what you will be paying at the time of closing. Remember, these are only estimates, and are subject to change. A final Closing Statement will be prepared by the Escrow Closing Agent, and will be provided to you prior to closing. This will state exactly how much you will need to bring to the closing. The Buyer will also be furnished a "Title Insurance" policy, which insures you that a marketable title on the property is insured by the Title Insurance Company. Title insurance protects the buyer against title defects. There will be two title insurance policies when there is a lender involved. One is the buyer’s title policy and the other is the mortgagee’s title policy. The mortgagee (lender) wants to be assured that there are no other liens superior to its, and that there are no encumbrances on the title that would restrict your degree of ownership. You will also need to provide you lender at closing with proof of homeowner’s insurance.  return to top

It needs to be emphasized that the sale of the property is between the Buyer and the Seller. The real estate licensee is the person who brings the Buyer and the Seller together. It is not the real estate licensee’s role to guarantee or warranty the property that was purchased.

Licensees are NOT responsible for replacing or repairing defects in the property. These items should be negotiated between the Buyer and Seller prior to closing. However, the licensee CANNOT willfully misrepresent the property. If they do so, they could be subject to disciplinary action by the Real Estate Commission and, possibly, even civil litigation.  return to top