* The Owners Network at The Owners Network at www.owners.com. These homes (so-called "FSBOs") are being sold without help from real estate agents, so they may not appear in the MLS. Also try These homes (so-called "FSBOs") are being sold without help from real estate agents, so they may not appear in the MLS. Also try www.forsalebyowner.com. For more on buying a FSBO, see Chapter 9.* Websites sponsored by local real estate brokers. Websites sponsored by local real estate brokers. Some brokers provide photos, neighborhood information, and advice. Try local Re/Max Realtor's websites, for example. The downside to broker sites is that sometimes you'll have to enter personal information to access the listings and could get a call from an agent looking for your business. Some brokers provide photos, neighborhood information, and advice. Try local Re/Max Realtor's websites, for example. The downside to broker sites is that sometimes you'll have to enter personal information to access the listings and could get a call from an agent looking for your business.* Looking for a newly built home? Looking for a newly built home? Check out Check out www.move.com (by the National Association of Home Builders), where you can add your own search criteria, such as "swimming pool." Also worth checking are (by the National Association of Home Builders), where you can add your own search criteria, such as "swimming pool." Also worth checking are www.newhomesource.com (with extensive information on custom, "build-on-your lot" builders) and (with extensive information on custom, "build-on-your lot" builders) and www.americanhomeguides.com. It's best to search all three sites; each gives different results.

How Much Did That One Go For? Researching "Comparable" Sales

All the houses you see advertised come with a price tag-but the price may have little to do with reality. How much a buyer actually pays will probably vary from the list price, up or down, by thousands or even tens of thousands of dollars. In a softening market, many sellers have an inflated idea of what their house is worth, and it eventually sells for less. In hot markets, some sellers set an artificially low list price in hopes of attracting a large pool of potential buyers, which results in outrageously high bids.

There's no sense in choosing-or eliminating-a neighborhood or area based on price until you find out how much houses there are really really selling for. (Later, such knowledge will ensure you don't pay too much or offer too little for a particular house.) Look at sale prices of houses comparable to the type you're interested in, or "comps." The most accurate comps come from houses that sold recently (preferably within the last six months) within the same general area (around six blocks) and with the same basic features as the house you hope to buy (like number of bedrooms, square footage, garage, neighborhood, lot size, general condition and construction quality, and landscaping). selling for. (Later, such knowledge will ensure you don't pay too much or offer too little for a particular house.) Look at sale prices of houses comparable to the type you're interested in, or "comps." The most accurate comps come from houses that sold recently (preferably within the last six months) within the same general area (around six blocks) and with the same basic features as the house you hope to buy (like number of bedrooms, square footage, garage, neighborhood, lot size, general condition and construction quality, and landscaping).

You'll never find two exactly comparable houses, so do your best to take a sort of average. Your agent, once you're working with one, will also be able to give you this type of information. And when you're ready to bid on a particular house, the agent may draft up a report on the comps. But for quick and dirty comparable sales data, use the websites listed below.

CHECK IT OUT.

Here's where to get comparable sales data. Two cautions apply, however: One, the listings may be out of date. Two, beware of signing up to be contacted by an agent. Two cautions apply, however: One, the listings may be out of date. Two, beware of signing up to be contacted by an agent.* www.zillow.com * * www.domania.com * * http://realestate.yahoo.com (click "Home Values"). (click "Home Values").

EXAMPLE: Paul and Leslie want to buy a three-bedroom house in Ardmore, Pennsylvania. They take the address of one such local home and pop it into one of the websites above. The closest matches are a three-bedroom, one-bath house that sold for $250,000 three months ago; a three-bedroom, 1-bath house that sold for $275,000 five months ago; and a three-bedroom, one-bath that sold for $228,000 six months ago. Without looking at the actual houses, they project that they'll need to pay somewhere in the mid- to high-$200,000s for the house they want. They might also posit that prices are rising, that the house currently for sale may be overpriced, or that adding a one-half bath can measurably raise the value of a house. Unfortunately, websites don't tell you about details such as house style, condition, landscaping, or charm. As Paul and Leslie start visiting actual houses and working with a knowledgeable agent, they'll have a chance to sharpen their understanding of local house values. Paul and Leslie want to buy a three-bedroom house in Ardmore, Pennsylvania. They take the address of one such local home and pop it into one of the websites above. The closest matches are a three-bedroom, one-bath house that sold for $250,000 three months ago; a three-bedroom, 1-bath house that sold for $275,000 five months ago; and a three-bedroom, one-bath that sold for $228,000 six months ago. Without looking at the actual houses, they project that they'll need to pay somewhere in the mid- to high-$200,000s for the house they want. They might also posit that prices are rising, that the house currently for sale may be overpriced, or that adding a one-half bath can measurably raise the value of a house. Unfortunately, websites don't tell you about details such as house style, condition, landscaping, or charm. As Paul and Leslie start visiting actual houses and working with a knowledgeable agent, they'll have a chance to sharpen their understanding of local house values.

Eventually, your knowledge of sale prices will turn you into a sort of amateur appraiser and help you decide on the appropriate price for houses you're looking at. Don't discount the value of your own research and intuition: House values depend partly on buyers' subjective responses to them, and you're a buyer. Placing an exact market value on a house is an inexact science, though appraisers, real estate agents, and sellers do their best to come close.

Hot or Cold? Take the Market's Temp

To figure out home values, you also need to know whether you're in a market that's primarily hot or cold (or balanced somewhere in between). At local open houses, do you have to wait in line just to squeeze up the stairs, or do you find yourself all alone with a chatty seller's agent? When talking with friends about homebuying, do they tell stories of how being outbid on houses drove them to couples' counseling, or how they're plotting how to get a bargain from a seller whose house has languished on the market for weeks? These are just a few of the more extreme indicators of whether the local housing market is hot or cold.

A hot market means there are more buyers than sellers, or not enough houses on the market to satisfy demand. As soon as a house is listed for sale, it's snapped up, and sellers can be inflexible about the price and buyers' other negotiating requests. In the hottest markets, sellers may pit you against other buyers competing to offer the highest price, the shortest closing period, and the smoothest transaction.

A cold market means there are more sellers than buyers, and houses may remain on the market for months at a time, waiting for a buyer. If, as happened in 2008, this is coupled with a major economic downturn, foreclosures can flood the market and bring down prices. This gives the buyer leverage when negotiating, because the longer a seller has waited, the more desperate he or she may be to unload the place. Meanwhile, sellers know that you have other options.

TIP.

Markets can be lukewarm or mixed, too. As Realtor Mark Nash notes, "Hot and cold is a generalization. For example, in some markets, starter single-family homes could be hot, and penthouse condos could be cold." As Realtor Mark Nash notes, "Hot and cold is a generalization. For example, in some markets, starter single-family homes could be hot, and penthouse condos could be cold."

The urgency of your house search, and your approach to sellers, will all be shaped by knowing whether you're in a market that's hot, cold, transitional, or balanced in the middle. It's not hard to figure out the basic "hot or cold?" question. The more difficult part is to gauge where the market is going-a market can move up or down in a matter of weeks. It can be affected by the local and national economy, mortgage interest rates, the availability and cost of housing (including rentals), the supply of and demand for homes, and more. Scads of real estate commentators make their living trying to predict what's next, but none know for sure. Nor do they specialize in the corner of the world you're looking at, which might have its own mini hot and cold regions.

You'll develop a sense of where your local market is going once you start seriously househunting. If, after several weeks, you find yourself able to predict the asking prices of newly offered homes, the market is probably pretty stable. If, on the other hand, you notice open house or "price reduced" signs on houses you looked at a few weeks ago, the market is probably plateauing or cooling. A real estate agent can also tell you about cooling trends, based on an increasing number of listings in their MLS database and a longer average time that houses stay on the market. And if you've been outbid on a house or two and notice that the list prices of similar houses seem to be inching out of your range, the market is heating up and you'll need to act quickly.

TIP.

Don't put your life on hold trying to predict the future. For every person who waited for the market to drop further and got a good price, there's another one who watched it pass them by. Just find a house you want at a price that's fair and affordable at the time. If you're planning to stay there for more than a few years, you'll weather any downturns. For every person who waited for the market to drop further and got a good price, there's another one who watched it pass them by. Just find a house you want at a price that's fair and affordable at the time. If you're planning to stay there for more than a few years, you'll weather any downturns.

Waiting for the downturn that never came. Eva, an artist, says, "At one point, I thought I'd never marry and decided to buy my own house. I began looking, accompanied by my dad, who'd offered to pitch in on the down payment. But every time I found a place I liked, my dad said, 'That's way too much, prices will come down soon.' He said that first about houses in the $200,000 range. Then I watched as similar houses started selling for $300,000, then $400,000. I bought a tiny place soon after, which fortunately has since risen in value. But it kills me that I could have had it for much less a couple years earlier-or could have had a bigger house that would fit my, guess what, husband and new baby!" Eva, an artist, says, "At one point, I thought I'd never marry and decided to buy my own house. I began looking, accompanied by my dad, who'd offered to pitch in on the down payment. But every time I found a place I liked, my dad said, 'That's way too much, prices will come down soon.' He said that first about houses in the $200,000 range. Then I watched as similar houses started selling for $300,000, then $400,000. I bought a tiny place soon after, which fortunately has since risen in value. But it kills me that I could have had it for much less a couple years earlier-or could have had a bigger house that would fit my, guess what, husband and new baby!"

Just Looking: The Open House Tour

Visiting open houses-where sellers throw the doors open to just about any interested party-is educational, free, and fun. For now, don't look only at houses that are smack dab in your price range. By looking at too-expensive and too-cheap houses, you'll get a feel for what various house features-like another bedroom or an updated kitchen-are worth. As you visit open houses, compare their features to your Dream List, to get a sense of which items will or won't be easy to find. Now's a good time to refine your list, too, if you realize that "a fenced yard would be great," or "I can't live next to an apartment complex."

Remember, unless you're ready to read the rest of the chapters and ramp up your activities in a hurry, don't fall in love with a house yet. You're still getting to know what's out there. In later chapters, we'll discuss how to take a hard look at a particular house-evaluate its physical condition, whether it's priced appropriately, and whether it meets your long- and short-term needs-as well as how to prepare an appropriate offer.

If a house really does look perfect, and you can't resist, at least heed this final warning: Don't sign anything on the spot. You may meet an oh-so-friendly agent who says, "I can write up your offer, no problem!" That agent represents the seller, whose interests, including getting the highest price and the most advantageous terms, will be put first. Go home, take a deep breath, look at later chapters of this book, and do some quick shopping for a buyer's agent-if you really want to buy that house.

Just start looking. Fiona was more convinced than her girlfriend that they could handle the financial commitment of a house. Fiona says, "Even after we'd done our research, had a mortgage broker evaluate our finances, and asked our parents to pitch in on a down payment, she resisted going to open houses. According to her stressed-out logic, we weren't Fiona was more convinced than her girlfriend that they could handle the financial commitment of a house. Fiona says, "Even after we'd done our research, had a mortgage broker evaluate our finances, and asked our parents to pitch in on a down payment, she resisted going to open houses. According to her stressed-out logic, we weren't really really ready, so it was a waste of everyone's time. Finally I got her out looking, and it was great-seeing open houses suddenly made the process fun. Of course, it was also a reality check, since we realized we could afford less than we'd thought. But we ended up finding a wonderful house, with great neighbors." ready, so it was a waste of everyone's time. Finally I got her out looking, and it was great-seeing open houses suddenly made the process fun. Of course, it was also a reality check, since we realized we could afford less than we'd thought. But we ended up finding a wonderful house, with great neighbors."

Nothing to Look at Yet? Finding Your Dream Development

If you're thinking of buying a newly built home, your community-to-be may look like a large sandbox. But that doesn't mean you can't do advance research. Your most important task will be to choose the best-quality developer before you go any further. Why? Well, as with any other product, different house manufacturers make different quality products. You don't even want to go near a house built by a developer at the low end of the quality spectrum, no matter how affordable it seems.

Figure out which developers are working in your area, which are worth buying from, and whether they offer the types of houses you want. To find developers, use the websites listed under "Got Houses? Finding Out What's Locally Available," above. Then use the following tips to research them: * Talk to people. Talk to people. This includes others who have purchased from a particular developer, local contractors, real estate professionals, and city planning staff. Don't stop until you've gathered information about each local builder's reputation from a variety of sources. This includes others who have purchased from a particular developer, local contractors, real estate professionals, and city planning staff. Don't stop until you've gathered information about each local builder's reputation from a variety of sources.* Ask tough questions of the developer and others. Ask tough questions of the developer and others. You'll want to find out how long the developer has been in business; how well funded the business is; whether it's ever been sued and for what; and the credentials of the developer, its employees, and contractors. Don't just take the developer's word for it-double check with your state's licensing board and the local building office. You'll want to find out how long the developer has been in business; how well funded the business is; whether it's ever been sued and for what; and the credentials of the developer, its employees, and contractors. Don't just take the developer's word for it-double check with your state's licensing board and the local building office.* Search online. Search online. The National Association of Home Builders ( The National Association of Home Builders (www.nahb.org ) is a good starting point. To hear feedback from other consumers, try searching Internet blogs, local newspaper websites, and homeowner-run websites such as ) is a good starting point. To hear feedback from other consumers, try searching Internet blogs, local newspaper websites, and homeowner-run websites such as www.hobb.org (Homeowners for Better Building) and Rate Your Builder ( (Homeowners for Better Building) and Rate Your Builder (www.rateryourbuilder.info).* Call your local Better Business Bureau. Call your local Better Business Bureau. It's often the first place that people turn to with complaints about local developers. It's often the first place that people turn to with complaints about local developers.

What's Next?

You've hopefully gotten a sense of which neighborhoods not only have a character you like, but offer the safety, schools, or other amenities you need. You've also gotten a sense of the local market and whether it offers houses you might want at a price you can afford. You're almost ready to do some serious house shopping. But first, let's figure out who's going to help you do it.

CHAPTER 5.

Select Your Players: Your Real Estate Team

Meet Your Adviser Nancy Atwood, with ZipRealty, based in Framingham, Massachusetts. Nancy is a Designated Broker, responsible for the legal compliance and mentoring of real estate agents who directly serve buyers and sellers. ZipRealty is a full-service brokerage offering rebates on agent commissions (see www.ziprealty.com).

What she doesNancy started with ZipRealty as an agent, where she helped countless homebuyers and sellers. She moved up to her current position as a broker and is now responsible for 175 full-service buyer and seller agents statewide. She was named a ZipRealty outstanding employee of the year in 2006. Nancys pre-real estate experience includes 25 years in the hi-tech industry doing customer service, sales, and marketing.

First houseIt was a three-bedroom ranch-style home in Harvard, Massachusetts (not the college-Harvard is a rural town, 32 miles west of Boston). Finding it took a little work-I wasnt in real estate then, and our agent kept showing us places that cost $30,000 more than our absolute limit or needed more work than we were then capable of handling. But eventually we found this place and were so excited to be moving out of the city and into an area with good schools and more open space. Still, the house itself was so small that our kids would sit on the washing machine to talk to me while I made dinner.

Likes best about her workI really like training and helping agents, especially those new to the business-Im so excited when one of my agents makes his or her first deal. I tell them that its not a sales job, but a support job, in which customers need to trust you with the largest purchase in their lives. Im also particularly interested in ethical issues around real estate. Because its a commission-based job, agents sometimes forget that our fiduciary responsibility is to the clients, not the commission. I tell them you cant control other peoples ethics, but you can control your own. My agents like to hear that, they get it, and Im proud of the fact that weve never had one ethics complaint filed against us here in Massachusetts.

Fantasy houseThe house I live in now. Around 1984, my husband and I bought four acres of land, designed a house, and had it built in Harvard, one quarter mile from the center of town. Its contemporary in style, very open and sunny, with passive solar energy. I know some couples fight over home construction, but for my husband and I it turned out to be an incredible bonding experience. We spent every weekend at Lowes or Home Depot, choosing fixtures, lighting, and hardware. He did such tasks as the wiring, while I focused on designing the kitchen. Its the biggest room in the house, with granite countertops so I can just roll out my homemade pizza dough, and windows that overlook our neighbors horse farm.

Top tip for first-time homebuyersChoose an agent you can trust. Interview your agent, and ask lots of questions-not only about the agents experience, but about their level of caring and consistency of customer referrals. For example, when interviewing, I ask agents what theyre most proud of. If they say something like, Im still invited to so-and-sos home every December during the holidays, thats wonderful. There are really a lot of agents like that out there, and not just at ZipRealty. Dont let the negative things you may have heard about some agents make you settle for one who isnt both caring and professional.

Buying a first home is a complex process, and there's no reason to do it alone. You can bring together a team of experts who've seen it all before (many times!). They'll not only help you understand what you need to do but also perform key tasks themselves, like negotiating with the seller, finding the best deal on a mortgage and helping fill out the paperwork, and making sure a property doesn't have hidden defects. Your real estate team will usually include: * a real estate agent, who will help you find, negotiate for, and complete the purchase of your home* a mortgage broker or banker, who will help locate the best financing* a real estate attorney (in several but not all states), who will make sure the deal is properly and fairly drafted and that the seller has good title* a home inspector, who will examine the property's condition, and* a closing or escrow agent, who will help ensure that the transfer happens smoothly and on time.

Unlike a sports team, these players may not work together directly. But even if they never meet, they share a common goal: to help you purchase your house on the best possible terms. Still, you're the boss (and the checkbook), so you'll want to be confident about your players and their abilities. In this chapter, we'll explain each person's role and how to select top players.

Your Team Captain: The Real Estate Agent

Your real estate agent has the broadest role of any team member: You'll work together from start to finish.

Who Real Estate Agents Are

You've probably heard different names-broker, agent, or Realtor-used to describe real estate agents. These convey different levels of experience, training, and knowledge.

* Agents. Agents. A "real estate agent" is the most generic of the choices. Agents must be licensed in the state where they work. This usually means completing 30 to 90 hours of classroom instruction, passing an exam, and renewing their licenses every one or two years. A "real estate agent" is the most generic of the choices. Agents must be licensed in the state where they work. This usually means completing 30 to 90 hours of classroom instruction, passing an exam, and renewing their licenses every one or two years.* Brokers. Brokers. A real estate broker is one step up from an agent. Brokers have more education and experience. In many real estate agencies (also referred to as "brokerages"), the buyer works with an agent on a daily basis, but the agent is supervised by a broker. If the buyer has problems the agent can't resolve, the broker will handle them. In smaller, independent agencies, the buyer may work directly with a broker. When we use the term "real estate agent," we're referring to both agents and brokers. A real estate broker is one step up from an agent. Brokers have more education and experience. In many real estate agencies (also referred to as "brokerages"), the buyer works with an agent on a daily basis, but the agent is supervised by a broker. If the buyer has problems the agent can't resolve, the broker will handle them. In smaller, independent agencies, the buyer may work directly with a broker. When we use the term "real estate agent," we're referring to both agents and brokers.* Realtors. Realtors. Over half of all licensed agents are members of the National Association of Realtors (NAR), a trade association. NAR members can use the designation "Realtor." They must comply with the NAR's standards of practice and Code of Ethics. Membership also suggests that the agent is up-to-date on real estate issues (because NAR provides training, member newsletters, and other resources) and has a network of contacts through the organization. Over half of all licensed agents are members of the National Association of Realtors (NAR), a trade association. NAR members can use the designation "Realtor." They must comply with the NAR's standards of practice and Code of Ethics. Membership also suggests that the agent is up-to-date on real estate issues (because NAR provides training, member newsletters, and other resources) and has a network of contacts through the organization.

Real Estate Agents on the Silver Screen * Annette Bening plays Carolyn Burnham in American Beauty. American Beauty. * Jack Lemmon, Kevin Spacey, Alan Arkin, and Ed Harris play competing agents in * Jack Lemmon, Kevin Spacey, Alan Arkin, and Ed Harris play competing agents in Glengarry Glen Ross. Glengarry Glen Ross. * Julianne Moore plays Marlene Craven in * Julianne Moore plays Marlene Craven in The Hand That Rocks the Cradle. The Hand That Rocks the Cradle. * Craig T. Nelson plays Steven Freeling in * Craig T. Nelson plays Steven Freeling in Poltergeist. Poltergeist.

Realtors may also have advanced designations/certifications through the NAR and its affiliate organizations. You're particularly interested in the Accredited Buyer Representative (ABR) or Accredited Buyer Representative Manager (ABRM) designations, given to Realtors or brokers specializing in representing buyers.

What Your Agent Does for You

Your real estate agent is your team captain, answering to you but coordinating other players and handling multiple tasks. Expect your agent to: * Suggest neighborhoods. Suggest neighborhoods. Although this book helps you look for the right neighborhood, your agent should be able to pinpoint possible locations. Ideally, your agent will live in or around the area you're interested in and give you an insider's perspective. Although this book helps you look for the right neighborhood, your agent should be able to pinpoint possible locations. Ideally, your agent will live in or around the area you're interested in and give you an insider's perspective.* Show you comparable sales data. Show you comparable sales data. To help you gauge the market value of any house you're interested in, your agent should compile a written report (called a competitive market analysis, or CMA) of comparable properties ("comps") that sold in the last six months. To help you gauge the market value of any house you're interested in, your agent should compile a written report (called a competitive market analysis, or CMA) of comparable properties ("comps") that sold in the last six months.CHECK IT OUT.

You can get some MLS data on your own. Although real estate agents get access to the full details, anyone can view portions of the MLS at Although real estate agents get access to the full details, anyone can view portions of the MLS at www.realtor.com , the NAR's consumer website. You may be able to get more-detailed MLS listings on your local paper's website, from a local agent's site, or by working with an agency like ZipRealty (discussed below). , the NAR's consumer website. You may be able to get more-detailed MLS listings on your local paper's website, from a local agent's site, or by working with an agency like ZipRealty (discussed below).

* Find prospective homes that meet your needs. Find prospective homes that meet your needs. You'll tell your agent how much you want to spend, what physical characteristics are important to you, and what type of neighborhood you're looking for. A good agent will search for properties that meet your criteria and show them to you as soon as they're available. Any competent agent knows that this task may take one day or one year-in either case, the agent will patiently help you find what you're looking for. You'll tell your agent how much you want to spend, what physical characteristics are important to you, and what type of neighborhood you're looking for. A good agent will search for properties that meet your criteria and show them to you as soon as they're available. Any competent agent knows that this task may take one day or one year-in either case, the agent will patiently help you find what you're looking for.* Walk through prospective properties with you. Walk through prospective properties with you. Your agent will actually take you to look at properties, too. Your agent acts as another set of eyes, helping you think about practicalities (like whether the house provides enough storage space or has an impractical floor plan), and spotting potential problems (like a water stain on the ceiling indicating a possible leaky roof, or an old plumbing system in a sparkling new kitchen). The agent might also suggest easy-to-make improvements, such as converting an unused nook into a home office space. The agent will coordinate a second and even third showing, if needed. Your agent will actually take you to look at properties, too. Your agent acts as another set of eyes, helping you think about practicalities (like whether the house provides enough storage space or has an impractical floor plan), and spotting potential problems (like a water stain on the ceiling indicating a possible leaky roof, or an old plumbing system in a sparkling new kitchen). The agent might also suggest easy-to-make improvements, such as converting an unused nook into a home office space. The agent will coordinate a second and even third showing, if needed.TIP.

Don't hire an agent who'll push you off onto an assistant. Illinois Realtor Illinois Realtor Mark Nash says, "Choosing a high-producing agent isn't always your best bet, because such agents might not be available to work with you until you're ready to write an offer. In the meantime, they'll have a less-experienced, licensed assistant take you to look at properties. But an agent learns a lot about a client-and the client's needs and preferences-from walking through properties together. Make sure your agent is going to take you around personally before you hire him or her." Mark Nash says, "Choosing a high-producing agent isn't always your best bet, because such agents might not be available to work with you until you're ready to write an offer. In the meantime, they'll have a less-experienced, licensed assistant take you to look at properties. But an agent learns a lot about a client-and the client's needs and preferences-from walking through properties together. Make sure your agent is going to take you around personally before you hire him or her."

* Draft a written offer and negotiate the sale. Draft a written offer and negotiate the sale. In the majority of states, your agent will help you draft an offer or other written statement that includes your offer price and terms. The offer process will be discussed in detail in Chapter 10. The agent will also ensure you receive any legally required disclosures about the physical condition of the property. In the majority of states, your agent will help you draft an offer or other written statement that includes your offer price and terms. The offer process will be discussed in detail in Chapter 10. The agent will also ensure you receive any legally required disclosures about the physical condition of the property.* Explain the process. Explain the process. Your agent should (beginning at your first meeting) be able to summarize the process of and timeline for searching for homes, writing an offer, finding and applying for financing, opening escrow, checking title, obtaining insurance, removing contingencies, and closing the deal. Your agent should (beginning at your first meeting) be able to summarize the process of and timeline for searching for homes, writing an offer, finding and applying for financing, opening escrow, checking title, obtaining insurance, removing contingencies, and closing the deal.* Open escrow. Open escrow. Your agent should open escrow for you (help begin the process of finalizing your purchase) or give you recommendations for a reputable escrow or closing company or real estate attorney (depending on which state you're buying in). Your agent should open escrow for you (help begin the process of finalizing your purchase) or give you recommendations for a reputable escrow or closing company or real estate attorney (depending on which state you're buying in).* Manage day-to-day activities leading up to the closing. Manage day-to-day activities leading up to the closing. Once your offer is accepted, you have a lot to accomplish before the deal is finalized, such as scheduling home inspections, lining up financing, and getting insurance. Your agent should guide you through each step, either handling the tasks directly or working with the appropriate professionals. Your agent should also be present for major events like inspections, the appraisal, the final walk-through, and the closing. Once your offer is accepted, you have a lot to accomplish before the deal is finalized, such as scheduling home inspections, lining up financing, and getting insurance. Your agent should guide you through each step, either handling the tasks directly or working with the appropriate professionals. Your agent should also be present for major events like inspections, the appraisal, the final walk-through, and the closing.

Make Sure Your Real Estate Agent Plays for You

Real estate agents make a living representing one of two parties: the buyer or the seller. Since most agents have several clients at a time, they often represent both types in different transactions, sometimes selling houses for sellers, other times helping buyers purchase houses.

Usually, this isn't a problem. However, it can become one when the agent who is selling a house for one client has another client who wants to buy buy it. Then the agent could act as a "dual agent." This frequently results when a prospective buyer visits an open house and the seller's listing agent says, "Don't worry that you don't have an agent yet, I'll write the deal up for you." it. Then the agent could act as a "dual agent." This frequently results when a prospective buyer visits an open house and the seller's listing agent says, "Don't worry that you don't have an agent yet, I'll write the deal up for you."

You can imagine the potential problems when one agent represents two parties with opposite interests: While the buyer wants to buy the place for as little as possible, the seller wants to sell for as much as possible. It used to be that the agent just worked it out as he or she saw fit. But many buyers who'd told their agents that they were willing to pay more for a house than they'd offered were appalled when their agents turned around and told the sellers that exact information.

These days, if an agent wants to represent both sides, most states require that the agent get written consent from both parties. But it's not a good idea to consent to this. You want someone who is on your team all the way. Your safest bet is to get your own, buyer's, agent-one contractually bound to represent only you (though your agent must still be fair and honest with the seller).