Your friend may have saved you from a less-than-advantageous situation. The real estate agent you met at the open house was in all likelihood hired by the seller as a "listing agent." She primarily represents the seller.
Does that mean the seller's agent can't represent you, too? Not necessarily, but this type of arrangement, called "dual agency," is problematic: so much so that many states require agents signing contracts with homebuying clients to disclose in writing whether it's a dual-agency relationship.
If it is, state laws also commonly require buyers to specifically consent to this arrangement. (For background, see Who Does a Real Estate Agent or Broker Represent?)
What's the problem with dual agency? Instead of having an agent by your side who is solely dedicated to your best interests, and negotiating hard with the seller's agent, you'd have only one agent in the transaction, who tries to balance your and the seller's competing interests. That's difficult at times, and the agent might have a lingering loyalty to the seller, who hired him or her to get the highest price for the home.
Although you might be thinking, "My interests and the sellers' aren't so different, I want to buy the house for the amount he's selling it for," the opening offer amount is just the tip of the iceberg when it comes to issues you might negotiate over.
What if the house isn't worth that amount after all, as shown by the appraisal or inspection reports? What if repair needs turn up and you want a major price reduction? What if the agent promised the seller he could remove various fixtures that you'd very much like to keep in the home? The give-and-take of two agents negotiating has a better chance of protecting your interests.
Here's what you might want to do next, to make sure you are happy with the agent representation you sign up for.
Curb any urges to sign up with a real estate agent selling a home that you like. Unless you happen to have researched that agent ahead of time, you have little idea whether you'll be satisfied with his or her services.
You have other options, namely to sign up with a buyer's agent. It would be best to do this before getting serious about visiting homes for sale.
There are parts of the United States where dual agency is basically the norm (though it's still problematic). Your first hint about local practices will likely come from people living in the area where you plan to buy.
Ask them whether they used a buyer's agent. If they did, and were happy with the agent, get agents' names. You might want to meet with them yourself.
Agents aren't specifically divided into "buyer's agents" and "seller's agents." Most handle both sides of home-sale transactions. (There are a few who only handle home purchases, but you don't necessarily need one of these.) As soon as you sign up with an agent, however, he or she is your "buyer's agent."
It's worth interviewing several before choosing an agent you like. That person will ideally have a close and exclusive working relationship with you. He or she will help you scout out and evaluate homes, draw up offers when you find homes you love, help you understand the significance of home defects that turn up on the seller's disclosure report or a home inspection, and negotiate with the seller's agent about repair and other issues all the way through to the closing of escrow.
Don't be shy about asking questions when interviewing prospective agents, about everything from industry experience to number of clients to special expertise (say, about neighborhoods, remodeling possibilities, bicycle routes, or home decorating).
When you've found an agent you like, inform the agent, and get going on your home search. The agent may have you sign an agreement explaining and formalizing the relationship. Or, the agent may put off signing that agreement until you've actually found a house to buy.
In any case, it's not good form to string several agents along and have all of them look for likely homes for you. They'll eventually catch on, and might stop giving you the close personal service you need.
Here's the good news: You don't normally have to pay a buyer's agent. The commission model prevalent in the U.S. has the seller pay a commission of 5% to 6% to his or her chosen listing agent. That agent then shares approximately half that amount with the buyer's agent. (Now you see why agents at open houses are so eager to draw up the purchase paperwork on your behalf!)
