How To Negotiate Wholesale Deals With MLS Listings
Negotiating wholesale deals with MLS listings requires strategy, market knowledge, and strong communication skills. Here’s a comprehensive guide to help you succeed:
Key Steps for MLS Wholesale Negotiations:
- Research Market Comps: Pull recent comparable sales within 1 mile radius and similar properties
- Calculate Your Numbers: Determine maximum allowable offer (MAO) using the 70% rule
- Identify Motivated Sellers: Look for properties that have been listed 90+ days
- Build Rapport: Connect with listing agents to understand seller motivation
- Present Strong Offers: Submit offers with proof of funds and quick closing timeline
Best Practices for MLS Wholesale Negotiations:
- Focus on properties listed 20-30% below market value
- Target distressed properties needing significant repairs
- Offer all-cash deals with 14-21 day closings
- Include minimal contingencies in your offers
- Be prepared to close quickly when offers are accepted
Common FAQs:
Q: Can you legally wholesale MLS properties?
A: Yes, with proper disclosures and following state regulations regarding assignments/double closes.
Q: What is a good wholesale discount on MLS properties?
A: Aim for 30-40% below market value after repairs to ensure profit margins.
Q: How do you find motivated sellers on MLS?
A: Look for expired listings, price reductions, and properties on market 90+ days.
Q: Should I get a real estate license?
A: Having a license can provide direct MLS access but isn’t required for wholesaling.
Q: What’s the minimum profit for MLS wholesale deals?
A: Most wholesalers target $5,000-15,000 minimum profit per deal.
Q: How many offers should I make weekly?
A: Submit 10-15 offers weekly for best results in securing deals.
Q: What contingencies should I include?
A: Keep contingencies minimal – inspection period and title review are standard.
The Bottom Line
Successfully wholesaling MLS properties requires persistence, strong negotiation skills, and proper deal analysis. Focus on finding motivated sellers, building agent relationships, and making multiple offers weekly. While competition can be higher on MLS deals, they remain a viable source for wholesale opportunities when approached strategically.