For years, real estate investors have favored off-market deals, auctions, and private sales over the MLS (Multiple Listing Service) due to limited inventory and high competition. However, recent market shifts indicate that the MLS is making a comeback as a viable resource for uncovering investment opportunities. Here’s why and how to leverage the MLS effectively.
Why the MLS is Making a Comeback
Market Adjustments: The September rate adjustments by the Federal Reserve, changes in DSCR loan pricing, and shifts in bond yields have created a recalibration in the market, yielding a climate favorable for investors. Because traditional buyers are more selective, properties that don’t immediately attract interest are staying on the market longer, creating opportunities for investors.
Flight to Quality: In a down market, buyers prefer well-prepared homes. Properties needing renovation may linger, making them attractive to investors who can negotiate lower prices and enhance value through improvements.
Transparency and Data: The MLS offers detailed property histories and neighborhood comparables, enabling investors to assess potential value more accurately. Motivated sellers are often willing to negotiate, especially for properties requiring updates.
4 Tips for Spotting Deals on the MLS
Focus on “As-Is” Properties: Target listings labeled “as-is” or in need of updates. These are often overlooked by regular buyers but present significant upside potential for investors looking to renovate.Search by Days on Market: Properties listed for 60 days or more typically indicate motivated sellers. These listings are prime for negotiation, as sellers may be more flexible on price.Choose High-Rental Demand Areas: Invest in locations with strong rental demand to secure steady income. High-demand areas provide a safety net if flipping proves less profitable.Assess Renovation Needs: Evaluate potential renovation costs carefully. Properties requiring mostly cosmetic updates often yield better returns than those needing extensive structural work.
With the current market volatility, MLS-listed properties are increasingly appealing to investors who were previously sidelined. By adopting a strategic approach to identifying opportunities, investors can leverage the MLS as a renewed source of profitable investments.
Dominion Financial offers short-term bridge loans with up to 100% LTC financing and long-term rental loans backed by a DSCR Price Beat Guarantee, making it easier for investors to secure the necessary funding for their next deal. Now is the time to explore these hidden gems and capitalize on favorable market conditions.
