How to search the MLS

Question

How do you begin your search for a new deal?

Did some searching on this and found very little. I know all scenarios will be different but thought it would be great to get lots of ideas on this for all the newbies(pointing at myself here).

For those of you with MLS access(or just Zillow), how do you start your search for deals? Are you staying under a price window? Are you only searching for foreclosures and short sales? Do you look for properties with long DOMs?

Jamie DeRossett · Answer

First don't use the mls.  I have bought 3 properties off the mls this year and made $30,000.  I bought 1 wholesale deal and made $40,000.  Once it hits the mls there is instantly 6% and alot of competition.  All three properties I bought off the mls this year had over 5 offers and I had to pay over list price, but they were all REO's and I knew I could make money.  I underestimated the repairs on 2 of 3 and barely made any money.

This is because of low inventory nationwide and especially in the major markets which has caused prices to rise all over the country. This summer I was basically buying property off the mls just to keep my workers busy because there was very small margins as I paid over list for each property. We went $30,000 over list on 1 and lost it because they countered a all cash buyer at our offer and they took it. The mls is over valued.

If you want to look for kicks and giggles set your filters to reo, short sale, auction, foreclosure and those are what you want to look at and you are probably only going to find overpriced stale listing unless they were just listed.

Where do I find the houses? The best deals are always at the court house steps at your local foreclosure sale.  There is some property exchange in every state where properties where the lender has filed foreclosure on a homeowner that failed to pay the mortgage.  In Kentucky it is the master commisioner sale and every county has one and they are all cash and means there is alot less competition.  Another place I have made some money recently is auction websites. I have recently bought 3 houses off of www.hubzu.com and done really on each of them with about 30% return on my money.  I also search www.homesearch.com and have bought 1 house from there, but they had title issues and could not close it.  Contact your local wholesalers or better yet put up some bandit signs.  We Buy Houses, Any Condition, Close in 3 days (right), No Commisions. Hope this helps.  Thanks for the post and have a great night!

Kevin Zimmer · Answer

For the MLS, give your realtor the exact criteria you are looking for and have them set you up for an alert.  If possible, don't just let the alert come once a day, have it come as soon as it hits.  Be ready for when the deal comes in.  If it is a short sale you are most likely better putting the offer in through the listing agent, and compensating your realtor some other way (separate broker commission  agreement, understanding that you will list any properties with them).  Also, if it is a really good deal, don't be afraid to bid over asking or change your terms.  Sometimes you need to create deals.

Vonetta Booker · Answer

i think Jaime offered some great non-MLS ideas. I'd keep the MLS open as an additional option if you happen to see something decent there, but just not the only one... know that you're going to get a LOT of competition on it & because of that, prices often get bid way beyond their value. Know & stick to your numbers & don't get caught up in all of that. ☺

Jacqueline Carrington · Answer

Searching the MLS is easy, but you need to know what you're looking for. Come up with criteria that you are shooting for and then plug that into the MLS. As you search within your criteria, you may discover other variables that you want to include/exclude to refine your search.

Byron Bohlsen · Answer

i usually start my mls search by clicking the search button...

Kidding aside if you have already been doing your homework and know how to run numbers etc then the next step is to come up wIth your  plan.  Do you want sf or mf, fixer or rent ready etc. decide  numbers expectations. then find neighborhoods that fit and want to invest in. Then scan daily using your fav site. i recommended edina realty or coldwell burnett  if they  in your area

Michael Woodward · Answer

@Braden Hobbs  It depends on your strategy (wholesaling, flipping, buy/hold, etc).  What are your plans?