So you've followed our advice and have all of your ducks lined up in a row for your mortgage, right? Now you're ready for the fun part! It's also the hard part. You've got to find your house.

This will be one of the most important decisions in your life, so you want to make sure you go about it the right way. We've put together the 5-step Dolan plan to help get you in your dream home – or at least your almost-dream home!

Step 1: Find a "Buyer's Broker"

Don't forget that when you call the real estate agent whose name is on the For Sale sign, you are at the mercy of an agent who often is working for the seller. Traditional brokers earn their commissions based on what the seller gets for his home, which means the higher the sale price, the bigger their commission. So most brokers have an incentive to pass along to the seller any information you share about how much you're willing to pay.

A buyer's broker, on the other hand, works for you, the buyer, and puts muscle on your side. A recent study showed that no matter how good or bad the real estate market is, you'll pay 96% of the home's list price if you use a traditional broker, while if you use a buyer's broker you'll pay an average of only 91% of a home's listed price. That's 5% less, which on a $150,000 house is a cool $7,500!

Remember, you're hiring a broker to work for you, so you want to be extra sure he or she is really on your side! Before you sign a contract with a buyer's broker, ask these three questions:

1. How are you compensated? In general, we recommend buyer's brokers who charge by the hour–especially if you need the broker only to help you negotiate and close the sale. If you can't find a broker in your area who charges by the hour, find one who charges a flat fee of 2% - 3% of the purchase price you're willing to pay, rather than a 2% - 3% commission on the sale price of the home. This forces the broker to steer you toward homes in your price range.


2. Do you accept any financial "incentives" from the seller's broker to help close the deal? You want a broker who says "no" to this question. A buyer's broker who can expect compensation from both sides of the table will not have any incentive to get you the best deal.


3. Will you get price information for me? A buyer's broker can and should be willing to find out what the seller paid for a house and when. A traditional broker is not allowed to tell you this information. But this important information will help you make a reasonable offer on a home.

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