Don't Dismiss Investment Opportunities Listed on the MLS

[Stuart Udis]

I am constantly told by investors, particularly new investors that MLS properties are bad investments and they will only purchase "off market" properties. Here's a few thoughts to think about:

1. What exactly is "off market"? Being sent a property by a real estate agent or a wholesaler that is not actively listed on the MLS? Chances are you are being sent the same property as a long list of potential buyers. Often, these buyer lists are comprised of unsophisticated buyers meaning you are competing on terms with other suitors who are poorly informed on value, cost etc.

2. Many MLS properties are initially listed for more than their true value. Frequently agents will list properties at elevated values just to get the listing. It does not mean you can't write a lower offer. Many times these lower offers with patience are accepted while other buyers pass over the properties and fail to even write the lower offer.

3. Many MLS properties are listed without full details or with inaccurate information. Many agents are lazy and do not take the time to add photos that illustrate unique characteristics, incorrectly add the unit numbers, bedroom count, or fail to verify the square footage that could be greater than the public records the MLS autopopulates.

4, Many MLS properties are listed under the incorrect categories (multi-family under the residential section, multi-family under commercial etc.).

These are just a few examples of why you can't gloss over and dismiss MLS properties. This is by no means intended to be an endorsement of working with or working without agents, wholesalers etc. Just something to chew on before you automatically dismiss MLS properties because you feel too many eyes are already on the opportunity.

[Jay Hinrichs]

Quote from @Corby Goade:

Love this advice! Almost every property I've ever purchased has been on the MLS. Probably 80% of the deals we do for clients are on the MLS too. It's not uncommon for us to have appraisals come in 10% or more over contract price.

The data in the MLS is only as good as the agent that enters it- great point. We find amazing deals on the MLS all of the time because of this. Having an agent who really understand the market helps, though. We just closed a deal for a client on a duplex that the agent listed as a SFH. Our team recognized that it was in an area that was mostly MFH and was able to find that anamoly in the listing that most people would have missed. Got the deal done for about 25% less than retail value would have been had it just been listed in the proper category.

what I like about MLS is you can go through a normal buying process. .wholesalers want to hype their deals info is wildly incorrect.. they want up front NON refundable deposits and your not getting any of that back.. they just try to create a false sense of urgency.

MLS you take your time make your offers you can offer less you protect your EM you have inspections you can re trade within your contract time lines etc etc..MUCH more buyer protection that way.. the market will dictate the final outcome.. not a wholesaler hype machine and no real due diligence.