Finding "good deals" using the MLS

[Jennifer Brown]

Would anyone be able to offer any specifics on how they use the MLS to find deals (specifics as opposed to generalizations)?

[P.J. Bremner]

@Jennifer Brown

I have had access to the MLS (have my license) but found that I can pretty much find properties just as easily using Refin. Here is how I do it:

- I search for an area that I am interested in by zooming the map in on it.

- I use the $/sqft column and search by the LOWEST number first.  You do this by clicking on the top part that I highlighted in yellow, it will show the arrow pointing up or down.  You want LOWEST at the top.  

**Generally you will get 2 types of properties here - really big homes that are expensive or really run-down properties that are selling for cheap.  I keep my eye on the price as I scroll down the low $/sqft part of the list and when I see something that looks out of place, like a $200k property when everything else is $600k+ then you have a good candidate**

- Next I will click on the price at the top to bring the cheapest properties to the top and see if anything looks out of place there.

By using these two filter methods, you will pick off homes that are listed either at a good value relative to the size of the house OR you will find the cheaper homes in area.  Cheap doesn't mean it's a good deal, but I've never seen a good deal that was listed at the highest price point in the area.

Also, please keep in mind that these prices are STARTING POINTS so do your research, find out if homes in your area are going for below asking price or above.  In my local area, most properties are being bid up well over asking price so if you try to offer at or below asking, the selling agent will ignore your offer.

A final note, you can also filter deals by the age (Days on Market - all the way to the right side) and find stuff that has been sitting there.  This is where getting in touch with the selling agent or having your agent reach out can come in handy.  Sometimes you can find a deal because the seller needs something specific to happen that scares away most buyers.  A perfect example of this is a 1031 exchange clause: The seller wants escrow to be 4 - 6 months OR until he finds something else to buy.  Most people don't want to deal with this, so they ignore and move on.  Certainly an opportunity for you (investor) to solve the problem and make a deal.

Hope this helps!!