Is the MLS any good?

Question

Hello, I am in central Florida. I've been patiently waiting for something to come along on the mls for months. I am also a broker. It does not seem like the mls is even worth it. Nothing Im finding leaves room for rehab and the ability to make a profit. Am I going about this wrong? Im trying to stay conservative as I am new to this i.e. single family 3 bed 2 bath and block preferably. My big question is, for a flipper, is the mls even worth it. I know there are other routes to take but I figured after waiting long enough I would have had some luck with it.

Sam Ally · Answer

Every market is a bit different. In competitive markets like Florida, AZ, NV, CA the MLS is not where you should be.  Multiple sources to identify assets is absolutely imperative.  Direct Mail, canvassing neighborhoods, driving for dollars, bandit signs, wholesalers, HUSTLE is what you will need to uncover viable product to capitalize on.  Your risk tolerance, liquidity and ability to close quickly will also be critical.  As a Florida based Direct Lender deploying millions monthly, most of our funded transactions and acquisitions are from off market opportunities.  If you are not employing these strategies your fishing pole will continue to go without a nibble.  Feel free to contact me anytime I will be pleased to share our knowledge with you.

Geoffrey Schnake · Answer

I buy pretty many from the mls but I look for beat up property that I can rehab. I also make many offers. my closing ratio is around 1 in 35. it drives my realtor crazy. I offer cash ,  no inspection period and closing  as fast as the title company can do the paperwork . you just have to view many prospects .

Account Closed · Answer

You have to remember the MLS is where people and agents price the property at the highest price possible. Unless you are chasing REO's that have been on the market for more than 90 days, that is typical.

Marelyn Valdes · Answer

The latest thing in the Ocala MLS market is listing properties way below value and then your agent tells you the listing agent "got numerous offers, so in "x" number of days they want everyone to give their highest and best offer."  It's almost like bait and switch.  The last property I bought hit the market at $39,000 (tax appr. had it at $72,000), so I offered $55,000 cash and could close as soon as the title company could do the paperwork.  I made that offer within hours of it going on the MLS market.   I have seen listings at $10,000 (CB 3BR/2bath in Silver Springs Shores - iffy area but at that price......), so everyone put in bids - mine was $25,000 cash - and I didn't get it.

Brian Pulaski · Answer

In my short time of 5 flips (completed and in the process). I have found 4 on the MLS and 1 through a family friend. I have done everything from offer almost $10k over asking, to $55k under asking and got the houses.

Julie Hicks · Answer

MLS is hit or miss. I constantly scan MLS for potential deals. Really, the best look with that is placing offers on homes that just posted within 24hrs or have been listed for over 90 days. By setting up these parameters daily you generally will get the most desperate situations.

However, I don't feel that MLS is the best way to find deals. I currently market to the Orlando market with direct mail and that has rendered the best conversion rate.

Or, if you don't want to go through the hassle of direct mail, taking the calls and vetting each seller. I would suggest getting to know all local wholesalers, letting them do all the work and look through all of their deals. Normally, you can find deeply discounted properties cheaper with them than on MLS.

I happen to know one of the top guys in your area. Send me an inbox and I will forward you his contact information.

Julie

Andrew Michael · Answer

I do not know your market specifically so it is hard to gauge the usefulness of the MLS.  In the DC area there is great competition to find deals and the MLS is the first place everyone looks.  Thus pulling deals off the MLS through possible is difficult at times.  What search criteria are you using for the MLS?

There are many other alternate and creative ways to find deals that may be worth a shot.  First and foremost, a good wholesaler should be able to bring you deals.  I would try to link up with as many of them as possible.  Also, doing your own direct marketing is usually best.  This gives you the ability to search via your own criteria and cut out any middlemen.  In addition I would talk to contractors, appraisers, title companies, estate lawyers, mailmen/ mail-woman, etc.  Use anyone you can as second set of eyes to bring you deals.  Lastly I would set up internet key words for FSBO adds and postings.  I have snagged deals this way as well.

Rosston Smith · Answer

The MLS is pretty dry as of late. Most deals come from networking and relationships.

Jeff B. · Answer

I would expect to see your experience to be the norm.  MLS is broker listings, not owner listings and listing prices are frequently optimistically inflated to please the client.  This masks out those which might have been good deals.

Is the MLS any good?

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