Critical criteria are similar to any transaction in Real Estate. He / She must be a a licensed RE agent/broker, skilled in negotiation and a Buyer's Agent . Look for an agent with these credentials
Real Estate Sales Associate
Real Estate Broker
ABR,Accredited Buyer's Agent
Courses in Continuing Education including Negotiation Skills courses.

Interview agents in local offices where you are researching the properties. Ask if the agent has these credentials and if she/he has handled short sales and/or froclosures. These transactions are not for the faint hearted and can be last months before closing. The agent must be skilled in closing every loophole and determining outstanding liens on the property as well as perform due diligence. A normal closing can take 3 months, and one in foreclosure can be 6 months to a year.
If looking in Morris County, I will be happy to assist in your search. I have recently handled 2 such sales and concluded both.

First, get referrals - from friends, co-workers and agents (I'd be happy to try to provide you with a referral...are you in NYC? Where are you thinking of looking? I belong to national networks and can easily screen to find a couple good agents.)
Then, talk to them, review their web site and meet with them. Look for:
Do they work full time or is this a hobby? (pick someone full time).
How much business do they do? The average agent does 6 transactions a year - this is not a strong agent. A strong agent should be selling 20+ homes a year (depends on area and price point, and their personal and business goals). An agent handling more than 25 a year should have an assistant. An agent who works 50+ a year should be working on a team - and then THEY are not doing that many, their team is.
Personality match.
Honest and sincere concern for meeting your needs - it's not about what they tell you, it's about what they ask you.
Good communicator - in a way that makes you feel like you can ask dumb questions (because they aren't), and that will call or email or stop by your house - whatever fits YOUR needs best, and at a frequency that seems reasonable.
Do you want someone to call you each day with new listings or would you rather they just set you up with an email alert when something new comes on the market you might like? Or, do you only want to talke with them on Saturdays?
What's your schedule and theirs - does it match? Can you comfortably meet at times that work for you? As far as knowledge, read the referenced posts and see if they know as much as you do afterwards. Hope this helps!

Hi Homey: Professional experience and honesty top the list. Next down is ability to empathize with your needs and personality.

Some of us have corporate experience and some have none. While I would like to say that every Realtor is perfect, with 50,000 in New Jersey alone, there will surely be a bad actor or two. On the other hand, most are good and earnest and want to work with people who are honest and practical, so if you are looking for the moon, they may not want to work with you.

A contract is a meeting of the minds. An agent, offering a contract must have not only the meeting of the minds in legal terms but also in terms of being able to work with your personality and needs. Most agents try very hard to do this. Some find that some matches just aren't made in heaven. In my own work, I'm always willing to scrub an agency contract; if it's not working. Some agents and agencies will hang in there long past that point. Just remember that once some effort is made, compensation is deserved if the effort results in getting the home you seek.

Looking for "deals" in foreclosure and/or short sales is not usually the best way for the unsophisticated homebuyer to go. There are plenty of good deals on the market that are in the normal sale category and the distressed property field is best handled by investors and redevelopers with better business backing, more experience and deeper pockets to cover repairs.

Good luck

Hi Homey,

I agree that this is a great question however I must first agree but then disagree with the previous answer because it does not take talent but it does take lots of experience to work with foreclosures and the banks who owne them and this goes for short sales as well. If you choose an agent who is just inexperienced with knowing who to contact at the bank or how to put the offer together and who is not aggressive, it could wind up costing you a great opportunity.

You must remember that you are dealing with a bank not a person. The bank just wants the highest offer with the easiest terms and the quickest settlement. Many inexperienced agents will tell you that you can't negotiate with banks and that should be your first clue that the agent is not experienced or aggressive and you should try to find another agent. You can most definitely negotiate with banks. I know because I do this all of the time for my buyer clients.

I also know both sides because I work for banks by listing their properties and I when I am not working for the bank I am working for my buyers who want to purchase a foreclosure from a bank.

Short sales are extremely challenging and also require an experienced agent as well as an aggressive agent.

I never take no for an answer which is why I have always been so successful when dealing with banks.

If you would like me to go over strategies that may help you, feel free to email me and I would be happy to discuss this further with you.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee

Lynn made some great points! In addition, it's also best if you can find an agent (interview!) who have experience working both sides of foreclosure properties. They will know how to work with the banks special addendums and contracts and will be able to make sure all required information is sent so you have a better chance of your offer being accepted.

GREAT QUESTION, it does not take a talented agent to work with foreclosures/ pre-foreclosures, short sales, it is the banks who cause the drama not the listing / buyers agent. Find an agent that work around your professional and personal lifestyle, who can locate properties which match you specifications, area, and etc. The only factor agent who can "comp properties" determine what the true value of a home is worth.

You need to be approved by a lender prior to working with an agent that letter guides the agent on how to work on your behalf. You are only as good as the information you provide an agent, know exactly what you are searching for.