Consumer advocates strongly recommend that buyers hire their own agents. They further argue that a coop-fee has already been built-in to the purchase price, and therefore, there is no need for the buyer or seller to incur additional fees when the cooperating agent represents the buyer.

 
Why would a Buyer Agent want to negotiate a lower price for the Buyers?  Won't that reduce your commission?

 
The way a Multiple Listing Realtor Co-Broke normally works is that on a 5% commission* (*used as an example rate only), 2.5% would go to the Listing Agency and 2.5% to the Buyer Agency on behalf of the Homebuyers. The commission is then split again 50/50 between Buyer Agency and the Buyer Agent.

 
Thus for every $1,000 that we reduce the sales price for you, your Buyer Agent's commission will only be reduced by $12.50. It is our job to make sure that you are an extremely happy, fully educated Real Estate consumer.

There is a rule of thumb that says that if you have the capacity to repay the mortgage, you can afford a single-family house that costs up to two and one-half times your annual gross income. (Annual gross income is the amount you make before taxes are deducted.) Like other rules of thumb, this one is handy and can give you a general idea of how large a mortgage you can afford.  But, because it is so simple, it doesn't take into account all the information that will help you feel comfortable with your mortgage payments.

If you are buying a house with someone else (spouse, parent, adult child, partner/companion, brother or sister or other relative), you should consider your co-purchaser's earnings and existing debts as well. Remember, if you apply for a loan with somebody else, you and your co-borrower are both legally responsible for repayment of the mortgage.

Your buying power depends on how much you have available for the down payment and how much a financial institution will agree to lend you.