When it comes to negotiating a sales price on a home, who really represents your financial interests as a home buyer?

Surprisingly, it's not necessarily your broker, not unless you ask for buyer-broker representation.

“Many first-time home buyers don't understand the types of broker representation and how they operate in a contract price negotiation,” says Richard Roll, president of American Homeowners Association. “Without a specific agreement, you could be at the mercy of the seller's broker, whose main obligation is to get the highest possible price for the seller.”

Your agent should give you a disclosure form that describes the four types of representation: buyer's broker, seller's broker, dual agent (representing both buyer and seller) or non-agent (representing neither).

Remember that when it comes to negotiating a sales price on a home, it's up to you to choose the arrangement. If you want your broker to be accountable only to you, and not the seller, then your best choice is a buyer broker contract. Otherwise, your broker can't dicker or negotiate on your behalf.

The majority of buyer agencies have a policy of “no cost to the buyer,” which allows the buyer broker's fee to come out of the normal sales commission paid by the seller. In practice, the seller's agent agrees to split the sales commission with your broker, equal to a certain percentage of the final sales price.

That means the higher the price, the higher the commission. Listen to your broker's advice, but remember that it's up to you to make sure your broker knows your limit on the price.

Under the traditional agent-buyer relationship, your agent cannot opinionate about a home's disadvantages or drawbacks. But if you do decide to hire a buyer broker, your broker won't be constrained from criticizing or giving favorable advice to help you discriminate between homes and get a better price.

You might be asked to sign an agreement to work exclusively with the buyer broker during your home search. Whether you enter into an exclusive agreement depends on how confident you are about the individual and the quality of services he or she will provide. Try signing a short-term contract of 30 days or so, then renew for a longer period if you're happy.

Whatever you decide, don't sign anything until you get all your questions answered. Ask specifically how the broker will get paid, by fee or commission, and how much.

For more information on any aspect of buying a home, go to http://www.ahahome.com, the web site for American Homeowners Association.