Why I Use The MLS, part 1
There are many different distressed property lists. I have purchased many of them, thinking I had the list of all lists. Later, finding out that almost everyone else had the same list. What’s worse, the detail on the list was not verifiable. Meaning, no governing body was monitoring it to assure its accuracy. The list contained homes and their purchase prices, some listed for as little as $500 bucks. Wow! That sounds like a great deal, until you find out it is a place you never heard of. The list offers no information on the area, or the sales that appraisers look at. Some have the tax record sales in that area, but in today’s market, that could cost you a lot of money.
The MLS or Multiple Listing Service is the accurate compilation of all the properties listed by licensed realtors. It is governed by the State Board of Realtors, therefore regulated. The MLS allows licensed realtors to research comps, or current like sales in that area. My experience has been that generally, MLS homes sell for more than what was on the tax records. You ask how could that affect me? When you’re making a decision to purchase an income property, you need to have the best information. Information that has been verified and will be recertified by the time you close your deal. The other “lists” don’t assure that, sometimes leaving you in a bad position. If you pay cash for the home, you may never have it verified.
Another great tool the MLS provides is the SPDS, Seller Property Disclosure Statement. This is detailed information of what the seller knows about the property. This gives you an even better picture of what you’re buying. I always require my clients to get inspections, I haven’t seen any lists that offer that. Getting an inspection helps you know what type of fix up is needed on a property. If you buy something without this, you could run into serious cost: Mold, water damage, sewer problems. I personally had a tri-plex with a $7000 plumbing problem. If I had not had an inspection, I would have been stuck. Lastly and most importantly, the MLS not only monitors the information in the system, it also monitors the agents who use it. This protects you and me. I believe the MLS is a great choice.
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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
There are many different distressed property lists. I have purchased many of them, thinking I had the list of all lists. Later, finding out that almost everyone else had the same list. What’s worse, the detail on the list was not verifiable. Meaning, no governing body was monitoring it to assure its accuracy. The list contained homes and their purchase prices, some listed for as little as $500 bucks. Wow! That sounds like a great deal, until you find out it is a place you never heard of. The list offers no information on the area, or the sales that appraisers look at. Some have the tax record sales in that area, but in today’s market, that could cost you a lot of money.
The MLS or Multiple Listing Service is the accurate compilation of all the properties listed by licensed realtors. It is governed by the State Board of Realtors, therefore regulated. The MLS allows licensed realtors to research comps, or current like sales in that area. My experience has been that generally, MLS homes sell for more than what was on the tax records. You ask how could that affect me? When you’re making a decision to purchase an income property, you need to have the best information. Information that has been verified and will be recertified by the time you close your deal. The other “lists” don’t assure that, sometimes leaving you in a bad position. If you pay cash for the home, you may never have it verified.
Another great tool the MLS provides is the SPDS, Seller Property Disclosure Statement. This is detailed information of what the seller knows about the property. This gives you an even better picture of what you’re buying. I always require my clients to get inspections, I haven’t seen any lists that offer that. Getting an inspection helps you know what type of fix up is needed on a property. If you buy something without this, you could run into serious cost: Mold, water damage, sewer problems. I personally had a tri-plex with a $7000 plumbing problem. If I had not had an inspection, I would have been stuck. Lastly and most importantly, the MLS not only monitors the information in the system, it also monitors the agents who use it. This protects you and me. I believe the MLS is a great choice.
--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
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