How to find a real estate pro March 8, 2009 BY CELESTE BUSK - Sun-Times Staff Writer Buying and selling a home are two of life's most complicated and risky endeavors, so it's important to find the right real estate professional to help you through the process. The complex task of buying and selling property involves a lot of paperwork: disclosure forms, inspection reports, mortgage documents, insurance policies, deeds and multipage settlement statements. So, real estate experts recommend enlisting the expertise of a professional, unless you're thoroughly educated in the process. For example, if you're selling a home, the home needs to be priced properly. An improperly priced home will scare away buyers and languish on the market. A good agent will know what properties in the area are selling for and price the home accordingly. If you're buying a home, a good agent can help sift through the choices and narrow down the selection according to your needs. Some buyers might want nearby access to an expressway or public transportation. Proximity to good schools and parks might also be a prime consideration. Often, property listings omit these facts on listing sheets and a good sales professional can fill in the missing blanks. A knowledgeable expert will also help you prepare the best deal and avoid delays or costly mistakes; speculate on future price appreciation prospects, and be an objective voice in an otherwise emotionally confusing situation. There are also a baffling array of negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. A good agent makes sure no stone is unturned. The National Association of Realtors Web site offers up this statement: "A home often symbolizes family, rest, and security -- it's not just four walls and a roof. Because of this, homebuying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they'll ever make. Having a concerned but objective third party helps you stay focused on both the emotional and financial issues most important to you." One the best ways to choose a broker or sales agent is to get a referral, plain and simple, said David Hanna, president of the Chicago Association of Realtors. Hanna also is a managing partner of Prudential Source One Realty. "Talk to your friends and colleagues and ask them who they used and if they were satisfied," Hanna said. "The reason referrals are the best is because you have to go through the buying or selling process and finish it before you can make an assessment on if they were good. You can't measure the quality until it's over. So, get a referral and ask your friends, 'how did it go?'" Once you have a name, go from there. "Make sure you know what the broker is bringing to the table. I give my clients a certificate of things I'll do for them," Hanna said. "I make sure it's defined what the relationship is going to be and how often I contact them throughout the buying or selling process. Some people might want to talk every day, others once a week." Although one way to measure a broker or agent is to find out how much they've sold in the past, Hanna says that is not always the best way. "Someone new to the business might be extremely motivated and be able to represent you every bit as well as an established agent," he said. "Remember, when you choose an agent, it's a lot like having someone interview for a job. Follow the same process and ask lots of questions. Some individuals might just trust their instincts while others will choose an agent or broker based on good strengths." To help get you started on choosing the best real estate agent or broker, here are some tips from the National Association of Realtors and the Chicago Association of Realtors: Broker or sales agent? There are two types of state licensed sales designations. A sales agent is tested and licensed to put buyers and sellers together for a commission. A broker takes an additional test, which allow them to handle money and manage an office. Sales agents must have a broker on their side to complete the transaction. Experience: Ask how long the agent has been in the business. Real estate skills are primarily learned and developed on the job. Although experience doesn't guarantee skill, it's still better to choose one with years of experience. Sales records: Ask the agent how many properties they sold last year. A high number indicates someone who works hard and knows what they're doing. Efficiency: Find out how long on the average (in days and months) it took the agent to sell a property. The agent should have these facts readily available and be able to present market statistics from the local MLS to provide a comparison. By the numbers: On the agent's previous sales, determine how close to the original asking price the agent sold the property for. This indicates how skilled the agent is at pricing homes according to market conditions. Marketing: Will the agent use specific marketing systems and approaches to sell your home? A sales sign in the front yard is not enough. However, real estate doesn't sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner's contacts through previous clients, referrals, friends and family. Obligations: Ask the agent if he'll represent you exclusively, or will he represent both the buyer and the seller in the transaction? While it's usually legal to represent both parties in a transaction, it's important to understand where the practitioner's obligations lie. Recommendations: Make sure the agent can refer you to service providers to help obtain a mortgage, home inspection or real estate attorney. A good agent will recommend more than one provider and let you know if they have any special relationship with or receive compensation from any of the providers. Support system: Does you're agent belong to a brokerage office? Having resources such as in-house support staff, access to a real estate attorney, and assistance with technology can help an agent sell your home. Philosophy: Ask the agent what is his business philosophy? While there's no right answer to this question, the response will help you assess what's important to the agent and determine how closely the agent's goals and business emphasis mesh with your own. Progress: Determine how the agent will keep you updated on the sale or purchase and how frequently. Do you prefer phone calls, e-mail or a personal visit? Do you want updates twice a week or do you prefer not to be bothered unless there's a hot prospect? Referrals: Get the names and phone numbers of an agent's three most recent clients. Then call them and find out what they think of the agent.