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Posted over 11 years ago

MLS Access for Investors

Do you have access to the Multiple Listing Service (MLS)? The MLS is the most important database of information in the residential real estate world. Why? It provides the most complete and accurate information on properties actively for sale as well as those that have been sold, withdrawn or expired from the market. Knowing what similar properties have sold for, what competitive properties are listed for and why comparable properties didn't sell is vital information in order for investors to make informed decisions. Without access to this treasure trove of data, investors are flying blind in their investing endeavors.

The MLS is the gold standard for accurate property information. Appraisers typically will only use MLS information to complete an appraisal due to its accuracy. Although Phil Pustejovsky public information about properties such as a tax assessment record or a recorded document, may seem accurate, industry professionals like appraisers rely on MLS data over any other source. Tax records can be skewed because some property owners do not update the county if keeping the information incorrect leads to a lower property tax bill. Recorded documents, such as Deeds, do not always have the correct sales price listed due to some legal loopholes some crafty buyers employ. In contrast, the MLS is self correcting database, self regulated by real estate agents. As buyers agents show properties to their clients, when they discover discrepancies between the MLS listing and the actual property, they point out these inaccuracies to the listing agent. Freedom Mentor. If the MLS listing is not corrected, the listing agent can be fined. Little details like showing 3 bedrooms on the MLS listing when the property is really a 2 bedroom, can easily slip by the tax assessor or recorder's office, but it won't slip past a buyers agent and her clients who take time out of their busy schedule to view a home only to find out that it is one bedroom too small.

If the MLS is so powerful, so accurate and so vital to being an informed real estate investor, it should be easily accessible for everyone, right? No. Quite the contrary, actually. The MLS is controlled by the National Association of Realtors (NAR). They have a monopoly of sorts because they only allow NAR members, also known as Realtors, complete access to this coveted system. It wasn't until an a lawsuit was brought about by the US Justice Department in 2005 that the NAR started allowing limited access, which included only active real estate listings. One reason why Realtors have fought vehemently to protect this system from non-members is because it has allowed real estate agents to maintain a crucial role in transactions whereby people like investors require MLS data to make informed decisions. When experienced investors get complete access to the MLS without a Realtor, there is far less need for an agent in certain transactions. Therefore, the NAR has worked hard to protect their meal ticket.

In recent years, after much pressure, the NAR has loosened their grip by allowing IDX technology to pull the data from participating MLS systems so that information can be displayed on other websites besides Realtor.com.

Unfortunately, not all MLS systems are created equal because the MLS is not a nationwide, fully integrated system. It's a network of individual, local systems. In Nashville, TN, there is one MLS system for all of Middle Tennessee, encompassing 8 counties and 2 million people. In Volusia County, Florida, (pop. 500,000) there are 3 MLS systems: West Volusia, Daytona Beach and New Smyrna Beach. In each case, a different board of Realtors owns and operates each MLS. Freedom Mentor Reviews. So even if the National Association of Realtors allows more access, it is up to the local Board of Realtors who owns the actual individual MLS systems to create the technology so that it will play nice with IDX...which some have and some haven't.

Now that you have the history and background of MLS access, it will now be clear as to why there isn't a simple way for any non-Realtor investor to simply get complete access to the MLS. It is going to depend on your area. Although anyone can go to Zillow or Trulia or Realtor.com and get access to active listings, the really important information is contained in the closed sales information. Here are 4 ways to try to get MLS access that includes closed sales data:

  1. 1. Redfin.com

Comments (28)

  1. Is it my imagination or did author end this with "Here are 4 ways to try to get MLS access...." and then only post one (redfin)?!


  2. Hi! 

    I just got my real estate license and activated it under my construction company. I was told I can't get access to the MLS unless I activate under a Broker. Is this true?

    Thanks!!


  3. The remainder of the article found at: http://investing1002.rssing.com/chan-5461367/all_p1.html

    1. – This company recently won a court case against the National Association of Realtors to provide free access to active as well as closed sales details obtained from the MLS on their website. This service is terrific for giving real estate investors access to the MLS but is only available in select larger cities across the country. Check out their website to see if your city is one of them. Redfin is terrific.
    2. 2. Local Real Estate Agent Websites with IDX Technology– Some local Realtors now employ a new technology that draws active and closed listing information directly from their local MLS to the agent's website. This allows you to go to their website and for free, search for closed and active listings. Unfortunately, every MLS system does not allow this type of technology to pull the data from the MLS. In fact, there is much controversy over IDX right now and many local MLS systems are trying to stop its proliferation.
    3. 3. Public Versions of Local MLS Systems– Each Multiple Listing Service is completely separate from the next and therefore can be drastically different from each other. Some systems provide a public version, as in the case of Middle Tennessee which has the Realtor side (Realtracs.net) and the public side (Realtracs.com). In the Los Angeles area of California, TheMLS.com has a guest login option so that allows anyone to get both active and closed sales information.
    4. - This is owned and operated by the NAR. For local MLS systems that participate, this resource pulls active and closed sales data from each individual MLS and then distributes it into services like RealQuest and SiteXData. I love both of these services. SiteXData is less expensive but they have a smaller coverage area than RealQuest. In both cases, it's hard to get a straight answer on pricing though. They don't publish standard rates and they also don't return your calls quickly. They would rather deal with big companies that have tens or even hundreds of users as opposed to one person investor clients. But the reports they generate and the closed sales data is fantastic.

    1. If all else fails, the other way to do this is to build a relationship with a Realtor. Then, that agent can give you the data you need by you simply asking them for it. Or, if your friendly agent gets tired of being your errand person, you could become their non-licensed assistant. For some MLS systems, non-Realtors can get their own username and password and their own MLS account by going to an all day class and becoming an assistant underneath an agent. Many of the investors I work with have done this and they love it, because not only do they get active and closed sales information, they also get access to withdrawn and expired listing information as well.
    2. Any other ideas on how to get access to the MLS besides what's been shared above? 

  4. Phil, is there anyway to just pay the NAR to get MLS access without being a realtor?  


    1. No


  5. Phil are you still active on Bigger Pockets? I am with Walter in the sense that your article was cut off when you were going to give the four ways to get MLS access. Could you please elaborate?


    1. The 4 used to be there. No idea why BP would cut them off. You can find this same article on my website FreedomMentor.com


  6. Phil, your closing statement says "here are four ways to try to

    get MLS access that includes closed sales data: 1.) redfin.com...................

    That's it.

    Where are the other 3 Phil?!  :-(


  7.   im James Ive read your book Phil and watch all your you tube videos and you gave me faith in myself again and inspired me im a single father of 3 girls i lost my wife few years back i really need your advice bought a house in a auction for 22k im hoping to double that can't get a Realtor to tell me what it's worth  its as is bank is Fannie Mae put everything i had towards it its in good condition but bank is offering property as is with quit claim deed if i back out i lose 2500 which took me time to save plus found out its in a light flood zone which is fine because ill own it but definitely impacts resale value so its probably more of a rental being close to shopping centers.

    question is can you get title insurance on quit claim in Ohio..thanks i hope im making the right decision Ive invested every dime my family has to get positive equity so i could have it to get a cash out refinance then lease out option to buy and use equity to purchase a better 2nd home and repeat to build wealth but like you said its positive cash flow not how many homes you own its what your assets earn you i sure could use your help thanks Phil .


  8. I was wondering how accurate is it to use Zillow to find all of the already sold homes. I go to Zillow to my area and select "Recently Sold", while uncheck all of the other listing fields. Are these sold listings accurate - like are these the same you would get if you searched for all the solds from the MLS?


  9. If realitors say that zillow is off, why do they use it?


    1. Who knows? Meanwhile, we just discovered another "Redfin"-like site, www.estately.com What I like about Estately is that it shows which MLS it is pulling the data from.


  10. Great article-thanks!


  11. In every county in America, there is a Register of Deeds, or Recorder’s Office. NETRonline.com is a great resource for finding the Register of Deeds for any county in the US. The Register of Deeds is accurate for telling you who the current owner of the property is as well as when that person bought the property. It can also tell you what liens are against the property as well as the amount of each lien at the time that lien was originated. However, the Register of Deeds is NOT reliable for providing the price of what the current owner paid for the property. This is a HUGE problem that causes massive confusion out there. In some states, the sales price is included on the Deed that is recorded, giving public access to sales price data. But in non-disclosure states like Texas, the sales price isn’t always added to the Deed. And in strict non-disclosure states like New Mexico, the sales price is not on the Deed at all. And, in some states, the “purchase price” on the deed may actually not be accurate at all! Listen to this… In some states, the standard Deed uses the term “consideration” rather than “purchase price.” In fact, in Tennessee, the standard Deed reads, “sales price or property value, whichever is greater.” This may not seem like much but it is a very big deal. Let’s say you are buying a property for $50,000. Rather than put $50,000 as the consideration amount, you can put the property value, which might be $80,000. What that will do is show in the Register of Deeds that the purchase price was $80,000, even though it was only $50,000! Since anyone can get access to public information, including new prospective buyers, when they are going to make an offer, they may think you paid $80,000 as opposed to $50,000. Is that legal you ask? Of course! And it works quite well, I am told :) Tax Assessor The Tax Assessor is responsible for valuing each property in order to be able to calculate the yearly tax bill, also known as a tax appraisal. Unfortunately, the tax appraisal is rarely an accurate representation of value. Although tax appraisers do their best to understand the particulars of each property, from bedrooms, to square footage, the reality is that property owners do their best to keep them in the dark so that they can keep their property taxes lower. Many counties have homestead exemptions and other policies that give incentives to homeowners by limiting how much the tax appraisal can go up each year. For long term homeowners, their tax appraisal can be much lower than it should be because they took advantage of those incentives. And for those near-bankrupt counties, some have kept the 2005 year tax appraisals in place here in the year 2013, even though property values have plummeted since then, in order to collect more tax revenue. So the tax appraisal that every property is assessed by the Tax Assessor is usually a very crude estimate and in many cases is way off. Plus, you can’t count on the Tax Assessor having the correct number of bedrooms, bathrooms or square footage. The Register of Deeds can help you figure out who the owner is and if there are any liens against the property. The Tax Assessor can tell you how much the homeowner has to pay in property taxes. But none of that information is helpful in determining property value. So where does successful real estate investors get their property information? The Multiple Listing Service (MLS).


  12. "public records data, which is not nearly as accurate." I hear people say thing like that and I just have to scratch my head. Why would you say the official records of the local government are not accurate?


  13. Redfin is in a different league from the others. Most of the data coming from free sources like Zillow and Trulia are public records data, which is not nearly as accurate.


  14. Hi How do Redfin, Zillows, Trulia and the like access the MLS data? Do they use OnBoard to get the data and pay for the right to allow everybody else access?


  15. I did some more digging on this subject. Here's what I discovered. The company OnBoard Informatics is the Q, or the source, of much of the real estate data online. SiteXData, RealQuest, as well as Free Services like Trulia, etc, get some or most of their data from OnBoard. OnBoard is a wholesale provider of data so you wouldn't go directly to them for comps. I had a detailed conversation with OnBoard. Here's what I learned from that call: # 1 - There are 750+ different MLS boards; 120 of them control 90% of the listings. Each one is independently operated so not all of them allow their data to be shared. Some of OnBoard's data comes from the MLS, but not all. Some MLS boards allow their data to be released, some do not. # 2 - Non Disclosure Sales Data: There are ways that these data companies can get sales price data from non disclosure states. Even though the county records may be non-disclosure, the tax records may show the sales price for tax basis reasons in some counties. In some counties of non-disclosure states, they actually hire private poling companies that pull the sales price data from who-knows-where? OnBoard claims their data is far superior to the free info you would generate from a Zillow or eppraisal. It's a rabbit hole trying to get all this sorted out, that's for sure. Here's my summary. The very best way to get the most complete, accurate understanding of the value of real estate is to have direct local MLS access. Second best is to get the data from a company that pulls their data from the local MLS, which some local Realtor websites do. Redfin does in certain areas. Third best is to pay for access to the data that OnBoard creates through SiteXData or RealQuest. Fourth best is to go the free route with the likes of Zillow, eppraisal, or homegain.


  16. here's more about non-disclosure states... interesting article: http://www.zillow.com/blog/2006-05-11/chronicles-of-data-collection-ii-non-disclosure-states/ according to zillow, the non-disc states are: The following states are considered non-disclosure: Alaska, Idaho, Kansas, Louisiana, Mississippi, Missouri (some counties), Montana, New Mexico, North Dakota, Texas, Utah, and Wyoming.


  17. Bill LyonsThanks Bill. I was on my phone & didn't have it with me when I posted that.


  18. Shane, the Non-disclosure states are: Alaska, Idaho, Indiana, Kansas, Louisiana, Maine, Missouri, Mississippi, Montana, North Dakota, New Mexico, Texas, Utah, and Wyoming


  19. Your experience is unique from what I have seen across the country. In most states, you can be a licensed real estate agent but not have MLS access. For most states, you must both be a licensed real estate agent from the State as well as a Realtor to access to the MLS. You're comment is actually the first time I have ever heard of a real estate licensed non-Realtor getting access to the MLS. That's encouraging news!


  20. Hi Phil, your post was very detailed with some valuable information! I would like to add to it..The NAR is an association for real estate agents to join and become paid members. In order to access an MLS (multiple Listing Service), you only need to be a licensed real estate agent. The MLS is a service provided to licensed agents only, you need not be a NAR (National Assocaition of Realtors) member to have access to MLS. I share this info as a licensed real estate broker within the state of MA who is not an NAR member.


    1. It is my understanding that a person can be added as an unlicensed realtors assistant and have full access with their own password e.t.c..


  21. Need to make one thing clear here...ONLY THE ACTUAL MLS can provide sold data in non disclosure states. I don't have my list handy. Search non disclosure in forums. Any resource other than the MLS PROPER will only provide last list price, NOT actual sales price. On REO's and shorts, there can be a very large gap.


  22. Hi Bill, I met you at the Orlando Symposium back in September 2012. You're system looks very exciting. Good luck with the roll out. I guess I am confused though. Does your system provide access to closed MLS sales information? Or does it simply show active listings? And is your software for residential and commercial or just commercial? Also, how do you get commercial active listings if they aren't in the MLS? Are you able to pull data from CoStar or Xcellegen?


    1. Hi Phil, very cool. Glad to meet you again, online :)... We provide active residential listings for sale, we don't offer commercial at this point and have no immediate plans to do so. We will have MLS, Foreclosure/Auction, and sold properties over the next 90days. Bill


  23. Hi Phil, yes investors can search by cap rate and cash flow at www.revestor.com the site assumes a 20% down payment on a 5yr hold. The premium accounts are set to come out soon that will allow users to set down payments, hold periods, exit strategy, and more advanced searching filters and alerts. The properties then return based on the users custom criteria. We just launched nationwide. We don't claim to be perfect as we are still working out some minor bugs but we are a great starting point and will improve with user feedback (as you encourage users to do) let me know how it works out for you and if you have any questions