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.