What's in the MLS that I can't see?

[Account Closed]

I know the comps are there but I can find that info elsewhere. What else does the MLS show?

[Lynette Braun]

Hi Micki, 

Great question! Where are you currently getting you data from? Data aggregation sites like Zillow are estimated to be about 60% accurate. So trying to assemble information about comparable sales from a variety of of sources like from the original source is important. But here are some things that comes to mind about the differences between the MLS and public information. Hopefully some other experienced licensees can bring their expertise to this conversation. :)

• The MLS shows a complete history of a property for every time the listing has been sold, withdrawn from the market, expired or cancelled and rented (by an agent.). Sold data would be most important here. But as a smart investor, you will want to know if the seller has previously listed the property at either a high or lower price to aid in your negotiations. These records go back to when the MLS went electronic. Here is San Diego it was 1998, with some records going back to 1996.
• Pictures. (But not always.) It can be beneficial to see pictures of the condition of the property before the current owner took possession. 
• Private agent comments. This is where agent communicate with each other without the public data site picking it up. There is valuable information about whether the property is vacant (possibly indicating a more motivated seller), the condition of the property and the terms of the sale. 
• Days on Market, When a listing expires without selling, there are usually only a handful of reasons: price, presentation or representation.  If you see the seller has previously tried to sell the home above market value for three months, you have a better understanding of the market.
• Tax records. The MLS here is San Diego links to a system that pulls data from the county assessor's office. (These are public record so you can access them too. It's just more leg work.) Linking these systems allows agents to include information about private sales in comparable data, giving you a picture of the complete real estate market.

If you questions about investing in real estate, I'm always happy to help! 

Happy Investing. :)