Finding the right home to buy can be a challenging prospect, but knowing what to expect can make the process easier. You can (1) buy through agents representing the seller and/or use a buyer’s broker, (2) buy directly from an owner, or (3) shop the auctions and foreclosure sales. Once you find the house you want, you must make an offer, check for clear title to the property, and arrange for a home inspection. And after the closing, you can finally move into your new home.

Using an agent or buyer’s broker – What a real estate agent can do

Real estate agents, real estate brokers, and Realtors® can guide you through the home-buying process and may be able to help with some or all of the following:

  • Determining your housing needs
  • Showing you properties and neighborhoods
  • Suggesting sources and techniques for financing
  • Acting as intermediary in negotiations
  • Recommending professionals whose services you may need (e.g., an attorney, inspectors, appraisers)
  • Providing insight regarding market activity in the area you’re considering
  • Disclosing positive and negative aspects of various properties that might otherwise have escaped your attention

Who the agent works for

The real estate agent generally works for (and is paid by) the seller. The agent must generally give his or her client (the seller) any information that could affect the seller’s position. However, there are many types of buyer-seller-agent arrangements, such as:

  • The traditional seller’s agency arrangement, whereby a seller employs an agent to list a property and solicit buyers. The seller pays the agent’s commission when the house is sold.
  • Single-agency brokers, who list properties and solicit buyers for a seller; they also find homes and negotiate prices and terms on a buyer’s behalf. To avoid a conflict of interest, the same firm does not represent both parties in a single transaction.
  • Dual-agency brokerage arrangements, whereby a single agent may represent both the buyer and the seller in the same transaction. The agent agrees not to disclose confidential information that could benefit one party at the expense of the other.

Finding a good real estate agent

If you want to work with a real estate agent, be sure to select an agent with a good reputation and expertise in the neighborhood(s) you are considering. Here are some steps you can take to find a good real estate agent:

  • Find out the names of the brokers and agents who work in the area where you want to buy (check the yellow pages).
  • Contact the local real estate board and the state real estate commission to determine if any complaints have been registered against agents or brokers with whom you may want to work.
  • Call some of the most promising brokers. Tell each one what kind of buyer you are (e.g., a first-time homebuyer, a veteran house hunter) and what you are looking for in a home. Ask the broker to put you in touch with an experienced agent who can meet your needs.
  • Interview each prospective agent. Find out what he or she knows about the community, and evaluate how well you might work together.

You may decide to work with more than one agent. Unlike a seller, a buyer generally does not enter into an agreement with one agent. So, if you’re dissatisfied with the one you’re working with, you’re free to choose another.