guide to buying

Why Should I Buy?    How Much Can I Afford?    PreApprovals    Types Of Loans   
Shopping For A Home    Finding A Realtor    Negotiating    Closing The Deal

An important distinction: not all real estate agents are realtors. "Realtor" is a registered trademark for real estate agents who belong to the National Association of Realtors, a nationwide association of real estate agents. If not a realtor, you should check the credentials and reputation of a real estate agent you are considering using.

A real estate agent represents the buyer or seller of a home, and must disclose his agency responsibilities to both sides if asked to represent both. Real estate brokers earn a commission by introducing buyers and sellers, including those individuals who choose to go direct, without using an agent.

Going direct: buying on your own

You don't have to use a broker when you buy. You can purchase directly from a seller, or "fisbo" (an acronym for "for sale by owner," or FSBO). Going direct requires doing your homework, however, learning as much as possible about the local real estate market.

Once you find a home, keep in mind that the seller's broker receives a commission and has a personal interest in getting the highest possible price. Don't expect the seller's broker to tell you how low the seller is willing to go.

Using a buyer's broker to find a home

You can also hire an agent, or buyer's broker, to represent you. A buyer's broker brings her knowledge of the local market and ensures that you receive full disclosure from the seller about any problems in a home.

Your agent will sift through listings and show you what she thinks makes a good match if you tell her what exactly your needs are. If you are unfamiliar with the neighborhood, she can tell you about property taxes, quality of schools, cultural activities, transportation, shopping and hospitals, or other neighborhood attributes. You can find a buyer's broker by registering online at the Buyer's Homefinding Network.