10 Ways to Spot a Good Deal on the MLS

Learn how to spot a good deal on the MLS. You never know when you just might hit the jackpot.

Finding the perfect home

When looking for a property, the first thing you might do is look at the local multiple listing service (MLS). Learn these 10 ways to spot a good deal on the MLS to find the perfect home for you.

The MLS offers a comprehensive list of almost all properties for sale in an area. You can easily search in the neighborhood you want and by price range, number of bedrooms and property type. It’s very convenient and informative.

The MLS provides the listing’s square footage, amenities, list date and year built. You can also see the estimated mortgage amount and a whole lot of other information about the property. It can be overwhelming for a buyer, especially if you don’t really have an idea of what you’re looking for.

Spotting a good deal on the MLS

Here are 10 ways to spot a good property on the MLS and get the best value for your money.

1. Back-on-market (BOC) properties

BOC properties are those that have already been sold, but were re-listed. Contrary to popular belief, BOC properties are not always problem properties. Most of the time, something on the buyer’s side didn’t go through or has been put on hold. Things like these delay the buying process for too long.

Sellers of BOC properties have likely moved out of the home and feel frustrated at having to re-list their property. This makes them more motivated to sell. Thus, they are very likely to bring the price down just to get it over with.

2. How motivated to sell the seller is

This is something you would know through interaction rather than by simply looking. Still, it is another good way to spot a good deal on the MLS. If you know how much a seller wants to sell, you can leverage this information when you make your offer.

3. Out-of-town agents

Listing agents who live at least two hours away may not be as actively showing the property to as many buyers as those who lived in the area. You might need to do a bit of a search for this.

It can also mean the agent is not very familiar with the market. The agent’s limited presence can also lower the property’ prospects and its competition. This makes it easier for you to make a good offer.

4. Properties with the wrong description

There are properties on the MLS that have the wrong information in the tax records. For example, a home may be listed as having two bedrooms when in fact it has three. It may come as a pleasant surprise for the buyer. Sometimes, the MLS would say if there was any discrepancy between what was in the tax record and the actual property. However, there are times when information like this isn’t immediately available, so as a buyer, you would have to dig deeper.

5. Properties with fewer bedrooms

If your budget is lower than the price range for the property you are eyeing, simply go for one with fewer bedrooms in the same neighborhood. Choosing a two-bedroom home could significantly save you money than buying a three-bedroom property. This is another way to spot a good deal on the MLS.

6. Properties that are not photographed well

These properties could be the house of your dreams – just not marketed well. Some sellers who opted not to stage their homes may have less prospective buyers, if any at all. This means little to no competition for you.

If you see homes with untrimmed bushes and dated furniture or that are still occupied by the owner or its tenants, there is a big chance that those properties would be easier to buy than perfectly staged houses.

7. Not the best house on the block

It’s easy to spot a desirable neighborhood – it is safe, has a good school and parks, has good access to transportation and is close to your workplace. Such a neighborhood appreciates well and real estate here is always a good investment.

Also, more often than not, the homes here are pricey. If you like the neighborhood, don’t try to buy the most expensive house on the block. Tour an average-priced home or one that costs less than the median.

You would still be able to enjoy the perks of living in a desirable neighborhood even if you buy the cheapest house there. That’s pretty good value.

8. Properties with higher number days on market

If you see a property that has been on the market for longer than normal, it could mean no one is interested in it (meaning, there is little competition). It could also mean a previous buyer encountered problems during the buying process (seller is then more motivated to sell). The seller of such property may have already made plans to move to another state or go on an extended vacation.

Making an offer for such listings could work very well for you because the seller might grab the opportunity to sell as soon as possible. That’s another thing to look out for when looking for a great-value home.  

9. Properties listed in the wrong association or MLS

Sometimes, there are homes that end up on the wrong association or MLS. Naturally, these homes do not get as much exposure as they would have had they been listed correctly. Therefore, such homes have fewer buyers.

This is a good opportunity to swoop in and make an offer on a property that probably has few or no potential buyers. 

10. Properties with upside potential

If the three-bedroom home you are looking to buy is a little out of your budget, find a two-bedroom home with expansion potential. If one of the bedrooms is larger or there is more living space, you can convert it into a third bedroom.

You can also consider properties with a bigger lot size or have areas you can improve. You could build an annex and rent it out. Even if you have no expansion plans in the future, the upside potential would help you fetch a better price for the property if you decide to sell it later on.

Sealing the deal

Searching for a good property can sometimes feel like looking for a needle in a haystack. However, if you consider these 10 ways to spot a good deal on the MLS, you might serendipitously find the perfect home for you. Once you’ve found a home, learn how to make a winning offer to make sure you close that deal.

Check out our featured home listings and condo listings for the best deals in San Francisco.