As a new investor, it is easy to understand why you would easily fall for the latest trends in MLS. Your tendency is to go with the flow and go where other realtors go.
As a result, you tend to miss the short sale and foreclosure boats since you are too busy looking at newly listed properties to flip right away. You always want to get ahead of the others.
What you should try to understand is that you need to dig in and choose a property that may be overlooked by the others. You have to learn how to look for deals that others ignore or fail to notice. There are many reasonable deals on MLS but you have to know how to find them.
How to Find the Best Deals in MLS
- Don’t go with the flow
Don’t go where the crowd is. Instead of trying to fight your way through newly-listed properties, look for the ones that had been listed for 90 days or those that had been sitting there for quite a long time.
Listings that are about to expire, those with multiple price adjustments, and expired listings may be your winning tickets. Take note of these properties and work from there.
- Look for listings with glitches and flaws
There’s always a reason why a listing has incomplete details or why some elements don’t work. Such listings will most likely be ignored by others thinking that they’re glitches.
Don’t ignore them even if there’s not much to see or even if there are no images. Such listings that don’t get much attention still deserve your time and effort. For all you know, they might actually be the real deals.
- Don’t limit your search to certain types of listings
A lot of investors focus on buying REO (Real Estate Owned) or short sales. While this may be a good strategy, it’s best to expand your horizons and broaden your search.
Some of the best deals are fair market listings which means that they are not distressed due to a short sale situation and they are not bank-owned either.
- Don’t limit your search on foreclosures
There are actually reasonable deals from MLS which are not foreclosures and you don’t have to buy foreclosures just to get a great deal. Many banks have made it more difficult for investors to buy foreclosed properties.
They don’t just give them away easily and cheaply. Therefore, it’s best to expand your search. There are many situations wherein regular sellers need to sell fast and below market value.
Some properties are simply outdated or the owner no longer wants to keep the property for some reason.
- Don’t be cheap
If you find an already good deal, don’t try to low-ball it. Know the fair numbers in real estate and just focus on that price.
If a deal comes up on the MLS and you’re willing to pay the full price or even a bit higher, submit your first offer at full price or even better than that. This will give you a better chance of getting the deal before any other offer comes in.