Thinking about taking profits by selling the family home?

No. 1 rule: Don't be impressed by a real estate agent's car. Many lease expensive cars such as BMWs or Mercedeses to appear successful. He or she may not be.

Better strategy: Ask the agent to provide you with:

Addresses of his or her listings within the last year.

Data showing how long each property remained on the market prior to sale.

The properties' listing prices compared with actual sales prices.

The average time all homes sold in your area over the last year stayed on the market before they were sold.

A real estate agent's list-to-sale ratio compared with the area's average list-to-sale ratio -- available from the agent's local Board of Realtors.

Get similar data from all agents you are considering and compare.

Your objective: An agent with fast sale times in relation to the others; an agent who sold homes at prices close to the listing prices; and an agent with a high list-to-sales ratio. Be sure to inquire exactly how the agent plans to market your home.

Our No. 2 rule: Keep in mind that all agents, no matter whom they represent, probably have one objective: Making a sale. That's the only way they generally make money.

Whether you are buying or selling a home, an agent may make you sign a "disclosure agreement" indicating whom he or she represents. Always note this information. You don't want to tip your hand on your negotiation strategies in front of a "seller's agent" if you're a buyer and vice versa.

A "buyer's agent" supposedly will help negotiate on the buyer's behalf. Beware, however, that he or she still may collect a commission from the seller.

So whether you use a "buyer's agent," "seller's agent" or a "transaction/facilitator agent," who works strictly for the transaction, it is important to do your own research.

If you're on the buying end of the real estate transaction, our advice is:

Carefully examine the location of the property, including schools. The quality of schools in an area often affects how much the homes appreciate.

Inspect a potential home carefully in daylight. You'll see imperfections better this way. Bring a notepad and jot down improvements you'll have to make.

Ask for a comparative market analysis (CMA Report), which gives the actual sales price of similar homes in the neighborhood. Ask for the area's median sales price for similar properties. This provides a starting point for negotiation.

Ask how long a house has been up for sale. Note whether it is empty. An owner might be more eager to take a lower price on an empty home if he or she is paying a mortgage and hasn't sold it in quite a while.

Learn whether the seller is carrying a mortgage -- information that should be a public record. It stands to reason that an anxious seller with no mortgage might be more willing to take a lower price than a seller who needs to earn enough from the sale to cover a very large mortgage.

Call the area's planning board. You want to know about the zoning of property surrounding your purchase. If a neighboring lot is zoned industrial, for example, the value might not appreciate quite as fast as you'd hope. You'll also want to ask whether any major construction projects could influence the home's value.

Is there a homeowners' or condo association? Check whether any assessments are in the works. Plus, you'll want to know about any litigation against the association that could affect the value of the home or condo. You'll need to make certain the association is well-run by reviewing its financial statement, and you'll want a chance to review bylaws to make sure you can live with them.

Base your offer in the median sales price of similar properties, how desperate your seller is, how badly you want the property, how much work it needs and your other research.