Finding the right professionals to assist you in your real estate transaction.

A good agent can help you find a home that meets your needs, negotiate on your behalf, supervise property inspections, and coordinate the closing. Agents are familiar with the mortgage process. A good agent can help save you thousands of dollars.

States issue two kinds of real estate licenses. There's a salesperson's license, and there's a broker's license. If your real estate agent is not also the broker, then he or she will be supervised by a broker.

Some states require agents to disclose all possible agency relationships before they enter into a residential real estate transaction. Here is a summary of the three basic types:

In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. That means they act, in a legal role, in the best interests of the sellers. Be aware at the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing and able buyer to the table.

Dual agency exists if two agents working for the same broker represent the buyer and seller in a transaction. A potential conflict of interest is created if the listing agent has advance knowledge of another buyer's offer. Therefore, the law states that a dual agent shall not disclose to the buyer that the seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without express written permission.

A buyer also can hire his or her own agent who will represent the buyer's interests exclusively. A buyer's agent usually must be paid out of the buyer's own pocket but the buyer can trust them with financial information, knowing it will not be transmitted to the other broker and ultimately to the seller.

How do you find a good agent?

Getting a recommendation from a friend or work colleague is an excellent way to find a good agent. Be sure to ask if they would use the agent again. You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood.

In any case, it is important to know whether the agent works full-time at real estate and how much experience he or she has. Good agents usually limit themselves to certain areas and property types. They don't make decisions for you; they explain your options so that you can make wise decisions.

Another point to note is that all agents usually are paid their commission by the seller from the sales proceeds. In some states, it's legal for an agent to represent the buyers exclusively in the transaction and be paid a commission by the sellers. In recent years a trend has developed where some buyers hire and pay for their own agent, though historically, in cases where the sellers and the buyers each have brokers, the agents have divided the commission paid by the seller.

Real estate agents suspected of doing something unethical or illegal should be reported to the local realty board or the state agency regulating real estate.

How much does my real estate agent need to know?

Real estate agents would say that the more you tell them, the better they can negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation. Good agents ask questions about your finances because they need to be sure you're able to afford the kind of home you're interested in.

Where can I get information on buyer agents?

For information on buyer agents, contact the National Association of Exclusive Buyer Agents, 7652 Gartmer Road, Suite 500, Evergreen CO 80439-5204; (303) 670-4304.

Do you need an agent for a new home?

Buyers concerned about costs should be aware of the differences inherent in working with sales agents who are employed by the developer, rather than traditional real estate agents. Most developers hire a staff of sales agents to handle their properties and will not pay an outside agent's commission.

Builders commonly require that an agent be present, and sign in, the first time a prospective purchaser visits a site before payment of commission even is discussed. At times when buyers use an advertisement to find the development themselves first, builders can refuse to pay any commission regardless of how helpful an agent may become later in the process. It is advisable to call the development first and inquire about their policy on compensating real estate agents if you are considering using one.

People who need assistance in shopping for new homes may want to retain an attorney or hire a buyer's agent for a flat fee to review the paperwork and help negotiate with sales agents.