Selecting the right real estate agent to help you buy or sell your home is essential to a smooth transaction. For the best possible experience, you should consider a professional’s background, personality and responsiveness.

Here are some tips to help you choose and work with your real estate agent.

How to choose a real estate agent

1. Consumers who do their homework can save thousands of dollars and experience a smooth transition. So don’t waste time and resources – decide what’s most important to you, and then find a professional who specializes in that area. A RE/MAX agent can help you no matter what your needs are.

2. Ask friends and family members for referrals. Someone you know and trust may have a RE/MAX agent in mind to help you meet your real estate goals.

3. If you’ve already determined where you’d like to live, drive through neighborhoods in the area and survey them for REALTOR® yard signs. Seeing the same name pop up on signs time after time may indicate that the agent is a specialist in the area. If you’re thinking about selling, monitor the signs in your own neighborhood.

4. Moving far away? Right here on remax.com, you can connect with a RE/MAX agent around the world who can offer great expertise and service. Consider services they offer, additional certifications, any specialties, and languages they speak. You’ll find the right professional to meet your real estate needs no matter where your home search takes you.

5. Pay attention to credentials. This will help you determine areas of expertise. You may be interested in these designations: ABR (Accredited Buyer Representative), CDPE (Certified Distressed Property Expert), LHMS (Certified Luxury Home Marketing Specialist), CRS (Certified Residential Specialist) and SRES (Seniors Real Estate Specialist). There are dozens of designations pursued for continuing education, so identify one or more that fit your needs.

What to ask in the interview

1. If selling, ask the real estate agent how he or she would establish a listing price. Request a Comparative Market Analysis, also called a CMA, which shows the market value of similar homes in the area that are for sale or have recently sold.

2. Ask the agent how he or she would market your property. Understand that some agents may prefer to first tour your home and then put together a customized marketing plan to present at a later meeting. But if he or she can’t suggest a strategy when asked, you might consider interviewing other candidates.

3. Ask the agent how often you should expect to hear from him or her. Know how and when you will communicate to avoid unrealistic expectations.

4. Ask how long the agent has been licensed and how many buyers and sellers he or she has helped.

5. Ask about designations. Interest in continuing education is a strong indicator of motivation and professionalism.

6. Pay attention to the agent’s listening skills. Does he or she cut you off before you’ve finished a sentence? There’s nothing worse than looking at houses you have no interest in because the real estate agent has not listened carefully to your needs, or having your home on the market too long because it’s priced incorrectly and the wrong buyers are being targeted.

7. Ask the agent what his or her fee structure is. Does he or she require a percentage of the sales price or work for a flat fee? Will the agent be paid another way?

8. If you are unsatisfied with a prospect’s plans or personality, thank him or her for taking the time to meet with you and repeat the process with another real estate agent. It can be time-consuming, but it’s worthwhile.

Once you’ve found the right real estate agent to represent you, hold up your end of the relationship. There are simple things you can do to help your real estate agent get you the best deal.

How to work with your real estate agent

1. If you are selling, create an information sheet that lists your home’s features and best qualities, especially those that others might overlook. Your agent may be able to use the information when marketing your home.

2. When selling, talk to the real estate agent about cosmetic improvements. Your home may need fresh paint or new carpet.

3. If selling, keep it clean. Eliminate cobwebs and dust. Keep the bathroom counters and mirrors wiped down. Vacuum and sweep daily.

4. If buying, be clear about what you want. Make a list of your priorities numbered 1 through 10. You can always revise the list, but give your agent something concrete so that he or she can research available listings more efficiently.

Food for thought

1. Hiring a REALTOR® will give you a strong advantage. Although many practitioners work part-time, RE/MAX Associates are full-time professionals who provide their complete attention and expertise.

2. Your real estate agent is an authority you hire to help you make the right decisions, but you have the final word.

3. Your residence is likely to be the biggest single investment you’ll ever make. Buy and sell wisely.

4. Office environment can say a lot about a businessperson. Is it clean and organized? Do the office hours make it easily accessible? Are staff members pleasant and helpful?

5. Remember that home values fluctuate with the economy.

By: Re/Max

After three weeks of solid increases, the industry’s volume of new mortgage applications took a sharp dive last week, as refinancing plunged to its slowest pace in a year and home purchases declined to their lowest level in nearly four months.

The Mortgage Bankers Association (MBA) said Wednesday that its measurement of total mortgage loan application

volume decreased 12.9 percent for the week ending January 21, 2011 when compared to one week earlier. The results do not include an adjustment for the Martin Luther King holiday.

Bloomberg reports that overall mortgage application volume has fallen to its lowest reading since November 2008. Steep drop-offs in both the number of homeowners looking to refinance and the number of homebuyers applying for a purchase loan contributed to the decline.

MBA’s refinance index decreased 15.3 percent from the previous week and reached its lowest level since January 2010. Refinances made up 70 percent of total applications. The trade group’s purchase index dropped 8.7 percent to its lowest level since October 2010.

MBA also reported average contract interest rates for the week ending January 21. Rates for 30-year fixed mortgages increased from 4.77 percent to 4.80 percent. The average rate for a 15-year fixed mortgage decreased from 4.16 percent to 4.12 percent.

The Federal Reserve board held its first meeting of 2011 this week. It may be a new year with new faces around the Fed’s boardroom table, but there’s nothing new in the central bank’s policy direction or its guarded assessment of the nation’s economic recovery.

Board members voted to keep the Fed’s benchmark interest rate near zero – a level they’ve clung to for over two years now – and press forward with their November decision to pump another $600 billion into the economy.

The central bank will maintain the target range for the federal funds rate at 0 to 0.25 percent and “continues to anticipate that economic conditions … are likely to warrant exceptionally low levels for the federal funds rate for an extended period,” according to the Fed’s policy statement released Wednesday afternoon.

The board decided to continue expanding the Federal Reserve’s securities holdings in order to promote a stronger pace of economic recovery and to help ensure inflation levels remain stable, officials said. The central bank will maintain its existing policy of reinvesting principal payments from its portfolio of mortgage-backed securities and government housing debt and intends to purchase an additional $600 billion of longer-term Treasury securities by the end of the second quarter of 2011.

Commenting on the planned bond-buying spree, Paul Ashworth, chief U.S. economist for the research firm Capital Economics, said, “We expect the Fed to finish its remaining asset purchases as scheduled, but it is unlikely to extend the program immediately. Nevertheless, if economic growth slows towards the end of this year, as the fiscal stimulus begins to fade, the Fed might still be persuaded to restart quantitative easing then.”

Fed officials remained cautious in their remarks on the economic recovery. They said progress “is continuing,” but noted that the pace “has been insufficient to bring about a significant improvement in labor market conditions.”

According to the board, growth in household spending picked up late last year, but remains constrained by high unemployment, lower housing wealth, and tight credit. Among the laundry list of areas of concern is the fact that “the housing sector continues to be depressed, while investment in nonresidential structures is still weak, [and] employers remain reluctant to add to payrolls.”

There was one distinctive difference to the Fed’s latest meeting – the vote was unanimous in favor of the policy decision for the first time in 12 months.

Kansas City Fed Chief Thomas Hoenig had been the lone voice of dissension for the past year, casting his ballot against holding the federal funds rate so low on the grounds that with the economy showing some signs of improvement, a continuation could increase the risk of financial imbalances and destabilization. Hoenig vacated his seat on the board at the start of the year as part of the Fed’s regular annual rotation of regional bank presidents.

Neighborhoods across the country are riddled with empty bank-owned homes and unoccupied foreclosures that erode neighboring property values and open the door for blight and, in some cases, criminal activity.

It’s already a challenge for lenders to put these properties back into the hands of responsible homeowners, and the situation is only expected to get worse. Foreclosures are on the rise again, further adding to already engorged REO inventories, market demand is waning, and the homebuyer pool is shrinking.

The nation’s glut of vacant REO properties took center stage in Washington Wednesday. HUD announced a new nationwide REO “First Look” program, in partnership with the nation’s largest mortgage lenders, and it was the first of a two-day summit hosted by the Federal Reserve to examine the community impacts of foreclosed and vacant properties.

HUD Secretary Shaun Donovan called the National First Look Program an “unprecedented agreement” that will allow state and local governments, and nonprofit organizations first crack or first right of refusal to purchase foreclosed homes from top lenders before the banks make these properties available to private investors.

HUD says the institutions participating in the program represent 75 percent of the REO marketplace. They include: Bank of America, Chase, Citi, Deutsche Bank, GMAC, Nationstar Mortgage, Ocwen Financial Corporation, Saxon Mortgage Services, U.S. Bank, and Wells Fargo, as well as Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA).

These companies have agreed to give communities participating in HUD’s Neighborhood Stabilization Program (NSP) an exclusive opportunity to purchase their bank-owned properties in targeted neighborhoods ahead of non-owner occupant speculators, so these homes can either be rehabilitated, rented, resold, or demolished.

HUD says its NSP grantees often find themselves competing with private investors for REO properties, which can hinder their efforts to stabilize neighborhoods with high foreclosure activity.

Under the new program, NSP participants will be immediately notified when a property becomes available and will have 24-48 hours to express interest in pursuing a specific property. The First Look period will then last approximately five to 12 business days. If no NSP purchase is made, then the home can be listed on the open market.

The participating lenders have also agreed to allow NSP purchasers to buy their REO properties at a 1 percent discount off the appraised value. Congress has allocated $7 billion to the NSP program to help nonprofits and municipalities purchase the homes.

A few streets over from the NeighborWorks America office where Secretary Donovan unveiled the new First Look program, the Federal Reserve commenced its two-day summit aimed at helping communities and practitioners better understand the barriers, practices, and local variables that play into neighborhood stabilization and the disposition of REO property.

“A foreclosure not only hurts the person who loses their home, it hurts their neighbors and their communities,” said Federal Reserve Governor Elizabeth A. Duke, one of the summit’s featured speakers. “As delinquencies and foreclosures continue to increase, we must think creatively and focus our research, outreach, and community development efforts on ways to help these communities recover.”

In conjunction with the event, the Federal Reserve has published an extensive volume of papers that explores regional market differences and presents perspectives from various industry players involved in REO disposition.