One common way people find homes in their price range is by using a real estate agent. The agent can look for homes that meet your needs and financial circumstances, and can help you narrow your choices. Unless you decided to hire a buyer's agent (see adjoining column), the seller pays the agent's fee, so there's no cost for you.

Ask your family and friends for referrals. You can also look at newspaper ads for "open house" listings and talk with the professionals showing houses. You'll want to choose an agent who makes you feel comfortable and can provide the knowledge and services you need.

Real estate agents can help you find the kind of home you want, examine comparable homes, and compare different neighborhoods. When you're ready to make an offer on a home, an agent will usually handle the negotiations with the seller, including presenting your bid. Your agent can also refer you to a mortgage lender, although you should still shop around. The lender will give you a pre-approval letter, handle pre-qualification, and help you secure mortgage financing.

• How long has the real estate agent been in the real estate business?
• Is this person a full-time agent?
• Is the real estate agent familiar with your preferred community?
• How many homes has the real estate agent sold in the past year?
• What's the average sale price of those homes?
• Does the real estate agent usually work with sellers or buyers?
• How many buyers is the real estate agent presently working with?
• Is the real estate agent acting as an exclusive "buyer's agent, meaning that they work exclusively with people like you who are interested in purchasing a home, as opposed to property owners who are selling a home.
• How many sellers is the real estate agent presently working with?
• What are the real estate agent's strengths?
• Will the real estate agent offer you 3 homebuyer references?
• For how long will the agent's contract with you be valid?