NAVIGATINGTHE MLS REALESTATEDATABASE ANDHOMEPURCHASINGPROCESS

SHAWN BODAY WWW.EUSS.EDU

Having access to an MLS database can put you one step ahead of the themarket in pursuit of a home. So what exactly is and MLS? MLS stands for“Multiple Listing Service” and it’s a database of homes or properties forsale. These databases typically populate major real estate listing sites likeRealtor.com, Redfin.com and the many others you see online but don’talways hold all of what’s available in the market. Generally speaking, it’salways smart to work with a broker, since they have direct access to morelistings and will help you jump on great opportunities. So how do younavigate real estate listings, find the best deals, and win big? I’ll take youthrough a couple points below:

Simply put: get pre-qualified. This should be your first step if you’reseriously considering a home because it’ll impact your next moves in afew ways. Being pre-qualified means a lender has evaluated yourfinancial picture, including income, debt, and assets and feels that you’requalified for a home at a certain price. Sellers want to know you’reserious and have pre-qualified for a mortgage, and one step further,have a pre-approval letter from the lender as well. In very competitivemarkets, a buyer with a mortgage can be at a disadvantage compared topartial or all cash buyers. All cash deals are quick and easy and don’tinvolve outside lenders to help the buyer. So, the lesson here is to havethat pre-qualification, and if you want to make yourself shine a bitbrighter, a pre-approval letter from the mortgage company willing toback you financially.

Coming across a fresh listing will hopefully put you ahead of thecompetition. But don’t think a quick pick up out of the gate will give you agreat deal. New listings tend to be priced high, with the idea of a sellerdecreasing the sale price over time depending on buyer interest andcomped properties in the area. However, there’s always a chance ofproperties priced far below their actual value! In a very competitivemarket, these little blips on the radar can happen, so a ‘shark’ like attitude isnecessary when pursuing listings. Additionally, you never know thecircumstances of the seller; there may be underlying reasons as to why theyare pricing a home so low.

So I first spoke of being ahead and now I’m talking about being last? I hopeto not confuse you, but there’s a reason for this. According to a recentForbes article, selling a home can take time, and could cause a great deal ifisn’t sold in a timely manner. In some cases, sellers could own two homes,two mortgages, and a financial burden rising every month. Because of this,prices are lowered and good deals pop up. Ask your real estate agent tosend over properties past 6 months on the market, with the hope of findingone of these great deals.

These are just a few ideas to consider when starting the search for a home.Having a real estate broker, a good idea of your financial situation, and anunderstanding of how to approach listings in the MLS database will set youin a solid place for finding a great home.