II. Buying and Financing A Home

A. Role of the Real Estate Broker

Frequently, the first person you consult about buying a home is a real estate agent or broker.
Although real estate brokers provide helpful advice on many aspects of home buying, they may
serve the interests of the seller, and not your interests as the buyer. The most common
practice is for the seller to hire the broker to find someone who will be willing to buy the home
on terms and conditions that are acceptable to the seller. Therefore, the real estate broker you
are dealing with may also represent the seller. However, you can hire your own real estate
broker, known as a buyer’s broker, to represent your interests. Also, in some states, agents and
brokers are allowed to represent both buyer and seller.

Even if the real estate broker represents the seller, state real estate licensing laws usually
require that the broker treat you fairly. If you have any questions concerning the behavior of an
agent or broker, you should contact your State’s Real Estate Commission or licensing
department.

Sometimes, the real estate broker will offer to help you obtain a mortgage loan. He or she may
also recommend that you deal with a particular lender, title company, attorney or
settlement/closing agent. You are not required to follow the real estate broker’s
recommendation. You should compare the costs and services offered by other providers with
those recommended by the real estate broker.
 

*Reprinted March 2001,with the permission of United States Federal Housing Administration
   Disclaimers and more tips available at  http://www.pueblo.gsa.gov/

2001-2005-maggiemc.com