Aug. 15, 2005 Edition

Do I Really Need MLS?

How this tool helps you invest in ugly houses
By Mike Blatney

Mike Blatney

The Multiple Listing Service (MLS) is a tool designed for realtors to market their listings. So what benefit could this tool possibly have for investors of fixer-upper houses?

Have you wondered. . .?

Is my market currently appreciating or declining?

What if I could go back and pull comparable sales from last spring, summer, fall or winter to see if the pricing fluctuates in the neighborhood in which I am about to buy or sell a house?

On average, how many days does it take to sell a house in any neighborhood of my market?

Which areas in my market have the fastest turnover?

Which areas in my market have the least amount of appreciation and slow turnover?

How well is my house priced in the neighborhood based on active listings?

If I buy this house, how much competition will I have when I sell it?

Has the house I am about to make an offer on been listed before, and if so, what were they asking and how long have they been trying to sell it?

What other houses in the area sold at a discount and who bought them?

If I rehab this house, what amenities and features do buyers expect in this neighborhood?

Could I buy more houses if I could monitor daily price reductions of listings and be able to search for the fixer-upper houses?

Should I direct mail the listings that did not sell (expired listings)?

Have you wished. . . ?

I wish I could include active listings and pendings in my market analysis.

I wish I knew the agent(s) who specializes in selling this neighborhood.

I would like to find the agents who list the foreclosures in my market so I can get on their list of investors.

MLS answers all of these questions.

How do you get MLS in your office? One way is to get your real estate license, join a board of realtors and subscribe to the MLS service. Another way is to hire someone already licensed. If you are considering a hire, you may want to require they be licensed. At least one franchisee I know has hired a retired broker. The franchisee acquired a list of brokers from the real estate commission and direct mailed them. After interviewing 11 applicants, he made a hire. The franchisee pays his new employee's board and MLS fees and compensates him by paying commissions on properties sold.

You can buy and sell ugly houses without having MLS, but having it not only creates more opportunities to buy, it also provides you with added knowledge when making buying and selling decisions.

. . .Mike Blatney is HVA's Director of Franchise Systems Support. Call him with questions at 972-761-0046.