The decision to hire a real estate agent when you're buying a home isn't the no-brainer it once was. In the early 1990s, the question was, Which agent should you go with?, while the question now is, Do you even need one?

When you are new to the world of home buying, signing up with a realtor can be comforting. You know that the realtor is experienced in navigating the complexities of the home-buying experience and that he or she can save you some time by going through your area's Multiple Listing Service (MLS), selecting homes that meet your needs and scheduling appointments to view them. The MLS is a database of homes available for sale in a particular area.

If you decide to go the realtor route, don't pick just anyone. This is business, not friendship, so you want the best because it will cost you money—not directly, but the commission will be built into the price of the home you ultimately buy. While brokers' commissions are more subject to negotiation than they used to be, 6 percent is still standard in most areas, with the buyer's and seller's agents splitting that take. Before you sign a contract with an agent, interview several. Ask about their experience with the type of home you're interested in, their customary commission rates, what services they provide, how long they've been in the business, how many homes they've sold in the past year, etc. Read the contract closely before you sign it—there may be clauses that bind you to this agent for a specific period of time and other things that you may not like.

The alternative to going with a realtor is the do-it-yourself route, where you figure out what you can afford on your own, scour the local paper and Internet for suitable homes, and go shopping. The Internet is a great place to shop for homes because many "for sale by owner" (FSBO) homes appear on these sites, with photos and information about the house that will help you narrow your list of homes you actually end up viewing. You can save money buying an FSBO home because the traditional commission isn't built into the asking price, but there is only so much you can expect to save, because the seller wants to come away with more profit. Should you choose this route, don't skimp on crossing the I's and dotting the T's in terms of legal issues—it may be wise to spend the money and hire a competent real estate attorney to make sure all your paperwork is in order.