Most house are sold by agents and this is who you are likely to meet if you go to look at a house. Remember that the agent represents the seller, not you, and they will be trying to not only sell you on the house, but also gather information about you and your situation to use during negotiations. One way to avoid potential mistakes is to have your own agent that represents you.

It's quit commonplace now for buyers to sign up their own agents to represent their interests in a deal. This type of agent is called a buyer's broker or buyer's agent, and their job is to represent you -- and only you. One caution is that the agent you select will, on occasion, work for the same company that listed the house that you are visiting, and therefore the seller's agent is also from the same company. If you want an agent to advise you and negotiate solely on your behalf, regardless of which house you buy, get specific arrangements in writing.

One credential to look for is an Accredited Buyer's Representative (ABR) designation from the Real Estate Buyers Agent Council, a Realtor group. You can search for a real estate agent with the ABR designation at the council's Web site, or call 800-648-6224 for a referral.

Make sure you find out how your agent expects to be paid. Most are still paid out of the seller's commission, but you need to know who would be paying what if you buy a home being sold without an agent, or if you find a home on your own. A good buyer's broker (agent) will show you for-sale-by-owner homes as well as broker-listed homes, but you could end up paying the 3% or so commission out of pocket, or agreeing to a higher price so you can roll the fee into your mortgage.

If some cases, buyer's brokers may ask for a retainer (perhaps $500 up front) to be returned to you when (or if) you buy. Although this is understandable, especially since so many homebuyers have no allegiance to any one agent, it's probably not a good idea unless it is accepted practice in your area. Contact a few buyer brokers and see if they all have the same requirement before paying one a retainer.

If you're also selling a house, you will need to consider wheter you want to use one agent or two. Most agents will assure you that they can sell your home at the same time they're helping you find a new one. It certainly is easier to communicate with only one person, and you might be able to negotiate a lower commission from an agent that will make money on both houses. Still, agents that specialize in representing buyers aren't always the best at representing the seller. Two agents could be well worth the extra hassle if you sell fast with the agent who lists most of the houses in your old neighborhood, and then are led to houses that are well-known to your buyer's agent across town.

How to pick an agent
There are a number of steps to take in selecting the right agent to help you buy a house:

1. Check the classifieds for the area where you want to buy and look for buyer brokers who advertise.
2. Check the names of potential brokers for complaints with the local real estate board or state real estate commission.
3. Call two or three recommended brokerage firms. Talk to the managing brokers. Tell them:
   • What kind of buyer you are (first-timer or experienced home owner).
   • The kind of house you're looking for.
   • The general price range you are working with.
   • Ask for the names of two agents that best meet your needs.
4. Interview the agents. Ask questions about:
   • Their firms, and other firms where they've worked.
   • How long have they been selling real estate?
   • What types of clients -- first-time buyers, working families, multimillionaires -- do they typically work with? What price ranges? Neighborhoods?
   • How many active clients are they currently working with (too many could mean they may not have time for you; too few could also be a warning sign)?
   • Have they acted as a buyer broker before, and do they have references from satisfied clients?
   Ask yourself if you would enjoy working with this person. Do they listen and pay attention to your concerns?
5. Select one or two agents that have the experience you want. If you conducted phone interviews initially, arrange to meet each of them in their offices. If you conducted interviews in person, have follow-up phone conversations. Be candid about the degree of service you're expecting and whether you'll be looking at houses with other agents.

It's time to begin the search