Chandler Properties Blog

What is the MLS?
A Multiple Listing Service (MLS) is a group of private databases which allows realtors representing sellers to share information about properties with realtors who may represent potential buyers or wish to cooperate with a seller’s broker in finding a buyer for the property. There is no single authoritative “MLS”, and no universal data format. The many local and private databases-some of which are controlled by single associations of realtors or groupings of associations are collectively referred to as the MLS because of their reciprocal access agreements. (Definition paraphrased from Wikipedia.)

How does this help the Average Investor?

The MLS has traditionally been a tool only available to to realtors.  With the advent of the Internet, average individuals are now able to access the MLS free of charge.  This allows us to have access to the same information as realtors.  We can search for properties by many variables.  Ex. Property Type, Location, Size, Price, etc.  

There are two good websites I use to search the MLS for properties. 

1. 1.Crye-Leike (Southeastern Market) www.crye-leike.com/main/search.php     
   

2. 2.Chattanooga MLS (Chattanooga, TN Market) www.chattanoogamls.net
   

How I use it?
I am constantly looking on the MLS for single family and multi-family properties to keep abreast of average market values.  By keeping an eye on the property market, an investor can develop a keen instinct for what a property is worth.  Then when a great deal comes around, it will be obvious.

It is a good idea for investors to have a clear cut idea of what kind of property they are looking to buy.  Below are a few criteria examples:

1. Single family house vs. multi-family house
2. Rural area or urban area
3. Price range
4. Square Footage
5. Potential rent

Narrowly defining your criteria will allow you to become an expert on a niche of the market.  Warren Buffett says, “You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.”  

This is an excellent point.  Find something you understand and become a master of it.  By understanding the value of the properties in your niche, you can patiently wait for a great deal to come along.  Then act quickly.

Tags: mls, search mls, search real estate

This entry was posted on Sunday, December 7th, 2008 at 12:39 pm and is filed under Property Analysis Tools. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.