Do You Need TO Hire A Buyer's Agent?

Beware! Don’t just call the number of the agent who is advertising a home for sale. They are representing the seller of the property, not you. You can hire your own buyer’s agent (an agent who represents you and your interests) and they will be paid from the sellers anyway. It will not cost you anything and may save you a bundle.
This is an article from the FHA (The Federal Gov.) about when and how to hire a Real Estate agent to represent you when you are looking to purchase property.

Which comes first? The Realtor or the house?
Many times when talking to people about buying a home this question inevitably comes up. Why do I need a real estate agent if I don't have a house picked out? Or why can't I just use the one with the sign in the yard?
Most people tend to rank real estate agents right up there with lawyers and dentists. Ok, maybe not that bad. Perhaps buyers feel they will be pushed into something by the Realtor. Maybe they think there is a special incentive that the Realtor gets by steering a buyer to certain properties. Most of the fears that buyers have about Realtors are just plane false. It could also be due to a lack of basic knowledge on how the process works.
When a property is listed for sale, most of the time the commission that the seller is willing to pay is set. (The common exception to this is HUD Repossessions which we will explain later.) The commission to sell the home is usually around 6% of the sales price. So if you are a buyer and walk into a house for sale without your own Realtor, the Realtor that put the sign in the yard is going to make the entire 6% commission of the sales price. Does he have an incentive to get you to pay the highest price possible? Sure, he works for the seller. The more you pay, the happier his client is. And the more you pay, the higher the commission for the realtor. There are things called dual agency and some other technical stuff, but if your impression is that the seller's realtor has your best interest at heart you are misguided. The seller's Realtor cannot work for both the seller and the buyer at the same time effectively.

If however, you hire your own real estate agent to help negotiate the transaction, then the 6% commission is generally split between the two real estate agents so each Realtor makes 3%. The seller is still paying the same amount regardless of how many Realtors are involved. The big difference here is that your real estate agent's job is to represent your interest only. They want to get the deal done for you! If you are a happy client, you are likely to refer business to them for doing a good job.
Some people might feel that the real estate agent is pushing them to pay a higher price because then they get a higher commission. Rarely would this ever be the case. Let's say the difference in what you want to pay and what you agent is recommending is as much as $10,000. The commission on that increase is only $300. Most agents split that with their real estate broker so they get about $150. Would it be worth $150 in extra income to possibly lose a sale? Remember that the difference was $10,000. Most price differences are usually just a couple of thousand dollars apart.
If you want a real estate agent to work hard for you in finding the perfect home at the right price - you need to be loyal to them. No real estate agent wants to spend hours researching information for a buyer, only to have them go use another real estate agent. One way to show that you are serious about working with an agent is to sign a "Buyers Brokerage Agreement." This document basically states that you will work only with them in finding a house, and if you go off and use another agent without first getting out of the contract, then you owe the agent a commission. You will find that by using this contract you get more time and effort on your agent's part.

However, before you ever sign one of these contracts you want to make sure that this is the real estate agent and brokerage company that you want to work with. You should interview the agent. Ask questions about their typical deals, typical clients, experience, communication style, and anything else you feel is relevant. Remember you are hiring them to work for you.