Step 2 - The buying agent

When buying a house, each person in the transaction has an agent. The sellers agent (or listing agent as they are sometimes called) works with the sellers to encourage people to look at their house. Your agent (or buyer's agent) arranges home showing for you and walks you through the paperwork and process of buying a house.

The seller sets aside 6% of the final sale price to pay the buyer's and seller's agent (each gets 3%). That is basically not negotiable. And don't think you can save some dough by not getting a buyers agent. In that case the selling agent gets the whole 6%. So you might as well get a buyers agent to walk you through the paperwork, set up house showings, etc. And don't forget that despite the hand waving of the seller paying them, that 6% is in the loan you are taking.

Don't be afraid to be demanding of your agent. 3% of the loan you are taking is just to pay this person, so make sure they are worth it. Word of mouth is your friend when looking from an agent.

Despite what the buyer's agent will tell you about, "being on your side", that is only partially correct. Always remember that your agent only gets paid if you buy a house and that the more expensive your house, the more the agent makes. That gives them a strong incentive to try to get you to close as soon as possible and for as much as possible.

This is why you have to sometimes lie to your agent. But that's for next time.