Many first time home buyers in Minnesota end up working with a subagent, otherwise known as a seller's agent and it's important to understand that these agents are working on behalf of the seller, not the home buyer. Seller's agents are hired to represent the seller and bring the buyer to the deal, but they do work on a commission and have certain rights and responsibilities towards the buyer.

Regulations vary from state to state, but there are certain things they cannot do according to national law. The author of '100 Questions Every Home Buyer Should Ask' encourages all buyers to review the agent's forms and disclosures thoroughly to understand exactly what types of services they will be offering; if you do not understand anything, do not sign the form. It's also important to understand the key things that a seller's agent can and cannot do for you:

A seller's agent can give you information regarding similar homes in the area. This information is called comparables or 'comps' and is a listing of homes that have similar price, size and area, and age. Comps can include homes that were recently sold or are currently in the market. This information allows a homebuyer to have a basis of comparison to ascertain the value of a home.

A homebuyer cannot be dictated by a seller's agent regarding which homes to buy. If a seller's agent is representing two sellers, then they cannot compel the homebuyer to choose one house over the other. Remember that as a home buyer, the final decision of which home to purchase rests upon you.

The seller's agent cannot point out defects in the home. The seller broker cannot say anything that would influence your decision to purchase, or not purchase the property. Any material hidden defects can be disclosed, but you will need to conduct your own research to find out if the home is in good condition.

The seller's agent cannot provide tips regarding the best offer amount for a home. It would be beneficial for you as a buyer to get inside tips from the seller's agent but they are legally bound not to provide confidential information to buyers.

With all the restrictions on your relationship, a seller's agent can still ask for referrals from you. Seller's agents are typically self-employed or small business owners and there is no law that restricts someone from referring others to a business.

When you are working with a seller's agent as a first time home buyer, it's important to remember that they are in the business to make the home buying process as easy as possible. This doesn't always mean that they have your best interests in mind, so it's important to do your own research about the property and work with a professional MN real estate agent in addition to the seller's agent.