The Short Answer
When it comes to finding off market properties, non-MLS listings can provide a number of benefits for investors such as: less competition, reduced cost, access to distressed properties and more. Finding these listings isn’t easy but there are a few methods that can be effective, including:
- Direct Mail
- Networking
- FSBO websites
- Courthouse records and foreclosures
- Real estate auctions
- Real estate agents and brokers
Jump To
Real estate investors who are looking for properties that aren’t widely available in the real estate market, so that they can beat the competition and secure great deals, may want to find off market properties. Which means finding listings that aren’t yet on the MLS (Multiple Listing Service) as these aren’t being publicly advertised. Investors who can find non-MLS listings may find more motivated sellers who are in financial distress, or off market listings that they can negotiate directly with the owner, or investments where they can add a lot of value easily.
How does this work? We’ll outline a few methods below.
Best Ways To Find Non-MLS Listings
Looking for listings that aren’t on the Multiple Listing Service (MLS) can be a good way to find properties that haven’t been as widely marketed. Which means that these properties will have less competition, and investors can snag good deals before they hit the real estate market.
Method 1: Direct Mail
Take a look around the neighborhood and find distressed properties that are either vacant or not being looked after. Send direct mail campaigns using letters or postcards to the owners of the distressed properties. This is a good way to reach property owners that may be convinced to sell their property. Particularly if it’s vacant and becoming more of a hassle for them to keep than it’s worth.
You can find the owners by looking at the county records, or using online property lookup tools. It’s important to be tactful in your approach to these homeowners, make sure you know the details of the property and be sensitive to their situation and explain your intentions without being pushy.
Method 2: Networking
Another way to find non-MLS listings is to network with real estate professionals like other investors, real estate wholesalers and groups of professionals. Wholesalers can be a valuable resource as they typically have access to properties that haven’t reached the market yet, as they look to find buyers for these and sell them the contracts for these properties. Real estate investment groups and online forums can be useful tools to find off market listings that haven’t made it onto the MLS yet.
Method 3: FSBO (For Sale by Owner) Websites
Websites such as Zillow and ForSaleByOwner.com offer properties that are being sold by the owners, without an agent. These are handy resources because they are likely to list homes that aren’t yet on the MLS. For example, Zillow allows sellers to list their properties 30 days before the property is listed on the MLS.
Method 4: Courthouse Records and Foreclosures
Public records are available at the courthouse, and these will often show properties that are in foreclosure or pre-foreclosure, as well as short-sale properties. Newspapers and government websites are also a way to access these properties, which have not been listed on the MLS. These sources will also mention properties that are soon to be listed.
Method 5: Real Estate Auctions
Home auctions are great for investors because they always have a steady stream of off market listings to choose from. To find auction properties, you can browse auction websites for deals with potential, such as RealtyTrac or Auction.com. In addition to scanning online, you can also keep track of auctions at the country courthouse or through your network connections.
Method 6: Real Estate Agents and Brokers
Once you decide on a neighborhood where you’d like to buy a property, you can contact reputable real estate agents and/or brokers to enquire about any exclusive listings they may have. Real estate agents and brokers have their ears to the ground, and may have listings that haven’t reached the public yet. If you can get access to these listings, you may find a great deal before others do.
Advantages of Non-MLS Listings
- Less Competition: Getting access to listings that aren’t on the MLS means that investors can take advantage of good property deals before other buyers have access to them. This can also save investors from having to enter bidding wars and potentially lose out on deals.
- Smooth Negotiations: Buyer and sellers are typically more relaxed when it comes to the purchase of non-MLS listings because there is no flurry of activity surrounding the property, and they can negotiate directly, instead of through an agent. This allows for contracts that can be tailored to each buyer and seller’s needs. It’s a good idea to go into these negotiations knowing your contingencies and the maximum you are willing to pay for the property.
- Flexible Terms: Investors can create deals that meet the seller’s unique needs, which can give them the edge when dealing with motivated sellers. Some of these deals may involve a flexible closing timeline or cash offers.
- Greater Opportunities: Investors can get access to emerging markets, and other areas where they not have been able to access before, by finding off market properties. By purchasing these properties early, investors can benefit from rising property values and higher appreciation potential.
- Reduced Costs: Non-MLS listings are typically done by the property owner and, as such, real estate agent commissions and other fees can be avoided. This means that the total cost of the transaction is reduced for both the buyer and seller.
- Access to Distressed Properties: Non-MLS listings are often distressed or undervalued properties, such as foreclosures, that may need a significant repairs and renovation work done. For real estate investors, these properties can be a gold mine for potential profit.
Disadvantages of Non-MLS Listings
- Limited Information: Listings that aren’t on the MLS may not have as much detail about the property, and investors may need to conduct their own research into the property.
- Extra Due Diligence: Properties that aren’t listed on the MLS may require extra due diligence from the buyer, because these properties may not have all the same due diligence that the MLS would have provided. Investors should consider enlisting the help of a title company or attorney, to avoid purchasing properties with legal issues.
- Cash Preference: Sellers who have not listed their property publicly may be looking for cash buyers, in which case this limits the financing options for buyers. Typically, non-MLS listed properties have sellers that are looking for a quick sale due to financial distress or other reasons.
- Difficult To Find: Finding off market properties can be more difficult and more time consuming. Investors need to actively search for these properties by networking, driving for dollars, monitoring auction websites, or direct marketing. This can be time-consuming compared to browsing MLS real estate listings that are readily available on multiple platforms.
- Property Condition: There is a higher risk of listings that aren’t publicly available being in poorer condition. These sellers are often looking to sell the property as is, with no guarantees about the condition of the property. Which means that the buyer could be buying a property that has major problems.
Other Ways To Find Good Real Estate Deals
For real estate investors who are looking to find off market properties for their portfolio, there are more options to consider…
Option 1: Real Estate Crowdfunding Platforms
Another way to find good real estate deals is on real estate crowdfunding platforms. Here, those who have a great project but lack the funding, can appeal to investors who will pool their resources to provide financing for the project in exchange for a percentage of the profits, or interest payments, or ownership in the property. Crowdfunding platforms give investors the chance to access deals that may be offered by developers, and they don’t have to put up any capital.
Option 2: Pre-Foreclosures
When a homeowner is behind on their mortgage payments, but the property hasn’t been seized by the bank yet, investors can buy what’s called a pre-foreclosure property. These off market listings usually offer a good deal, as the seller is motivated to sell the property quickly to avoid foreclosure. As such, buyers can often pick up good deals on these properties.
Option 3: Online Real Estate Marketplaces
Some online real estate marketplaces like Roofstock or LoopNet, list properties that aren’t on the MLS, or off market listings. This is can be good way to find non-MLS real estate listings that are in niche markets and get access to good deals.
Option 4: Pocket Listings
While the NAR no longer supports pocket listings, these can still exist. The NAR requires real estate agents to list their properties on the MLS, however some salespeople may provide pocket listings that are kept off the public market for a variety of reasons.
