When buying real estate, whether it's your first home, second home, commercial investment or raw land, it's a good idea to use a buyer's agent.

What is a buyer? To get this right, we need to look at the business end of the real estate industry. This guy must have been in the business for a few years and now has an agent working for and under this broker. Brokers earn from each agent's commission by providing sales representative services.

In return, it provides office space, a receptionist, and can offer a specific budget for advertising. If there is a connection to a larger national franchise, it is the broker who manages this and is responsible for these fees.

The agent makes a percentage of the sale. In general, the industry standard percentages are 6 percent for upgraded real estate and 10 percent for raw land. Of course, like any contract, this is agreed upon by both parties and is what the market will bear. 

If the agent provides a listing of the property, they have the exclusive right to sell the property. Generally, contracts require the agent / broker to go out of their way to advertise the house,and pay that percentage as a fee.

The buyer's agent not only goes through the list of wasted time the agent might generate for you, but is at your corner during negotiations. Of course, if you don't buy anything, they won't get paid, so they'll want to make the sale anyway.