Unlock The Power Of MLS Data: 5 Techniques Most Realtors Don't Know About

Most Realtors have a fairly basic understanding of the MLS system, which puts them at a serious disadvantage to those who know how to harness the power it provides.

Many real estate agents are aware of the basic functionalities of the MLS, such as creating listings, running comps, and uploading pictures, but there is so much more to it than that. When used effectively, this powerful but often underutilized system can help you market more effectively, identify trends before others, and analyze data to make better decisions—and these are just a few of the things it does that can make you a more successful Realtor.

In this article, we'll explore five powerful ways to use MLS data that most agents have never even heard of. This will give you a significant competitive advantage over other Realtors and provide the leverage you need to thrive in the coming years.

Analyzing Data To Find Hidden Opportunities

One of the key benefits of the MLS is its vast library of historical and current information on properties all over the country. This provides tremendous insight into hidden opportunities if you know what to look for. 

By exporting this data and manipulating it using a tool like Excel or Google Sheets, you can analyze it in ways that most agents never thought possible. For example, you could compare the list price from MLS with Zillow valuations to quickly identify potential flips or investment opportunities. Or, you could highlight all properties where the prices have dropped multiple times that exceed a certain threshold, and fall into a certain price range, and are in an area where prices are trending up, to spot hidden opportunities. Or you might look for properties where the seller has lived for more than twenty years and shares a last name with the buyer.

This approach allows you to be more analytical and efficient in finding hidden opportunities for your buyers—which means better deals for them and more income for you!

Identifying Other Realtors For Collaboration

You’ve probably heard the saying, “Your network is your net worth,” and there’s a reason so many people say that. It’s because it’s true.

Most agents already understand this to some degree, which is why they are constantly building and nurturing their network of prospective buyers and sellers, but a powerful channel many often overlook is other Realtors.

This is important because we all encounter potential clients we can’t serve for whatever reason, so we need to refer them to someone. And just by the normal course of business, we tend to encounter a fair number of these types of people. That makes your fellow Realtors a reliable and consistent referral channel.

The thing is, it’s difficult to find and connect with these other agents, especially outside of your immediate geographical area—unless you know how to use the MLS to do it!

MLS data can be used to identify agent trends or specializations, which can help you connect with agents who are conduits to certain types of buyers. For instance, you can search for agents in an area who have completed the most cash transactions in the past year, or agents who specialize in commercial properties within a certain price range. 

By forging relationships with agents who have a specialty that’s different from yours, you can receive (and send) a stream of referrals to earn more revenue without increasing your marketing budget.

Targeting Neighborhood Experts

If you’ve been in the real estate industry for more than five minutes, you’re familiar with the concept of farming a neighborhood. This is a powerful and effective marketing tactic that lets you dominate a geographical area, but in many cases, the people leaving are moving to places that particular agent doesn’t serve.

You can use MLS data to identify these agents who work extensively in specific neighborhoods or zip codes. If you happen to land a listing in a particular area, reaching out to the agents who focus there can be beneficial because they likely already have buyers in their pipelines who are interested in that specific location. These agents may also have valuable insights into the neighborhood that could help you tailor your marketing strategy and better serve your clients.

Another approach would be to look at where people who are moving to your area are moving from, and find agents who focus on the area homeowners are leaving. This scenario is an opportunity to forge a powerful relationship where you both win.

Mass Communication

One lesser-known feature of the MLS is the ability to send mass communications to other agents through the system. This can be an effective way to promote your listings to a wider audience, rather than simply publishing a listing and calling it a day. 

For example, you could pull a list of agents who have sold homes in a certain neighborhood and send them an email about your new listing in that area. While this method may generate some complaints if you’re sloppy and untargeted, being strategic and precise in your messaging can increase the chances of reaching agents who are genuinely interested in your property.

And unlike mass email through general business platforms like Active Campaign, Infusionsoft, or Constant Contact, which will be coming from a stranger, this will be coming directly from the MLS system, so they’re more likely to open and read it.

Analyzing Metadata For Market Insights

Exporting and analyzing MLS data can also help you identify broader market trends that most agents overlook, which means you’ll be more likely to find those hidden gems your clients will love you for presenting. 

By examining factors such as days on market or repeated price drops, for example, you can gain insights into the overall health of the market and make more informed decisions for your clients. You can also compare trends in different areas, such as the influx of buyers from out-of-state markets like California into Florida, to better understand the factors driving demand in your local market. In the bigger picture, you can analyze not only what’s going on now, but also what is likely to happen in the future. 

The amount of data that’s available in the MLS system is, frankly, astounding, and what you can do with it is really only limited by your imagination, understanding of statistical analysis, and technical skills with spreadsheets.

Conclusion

By tapping into the full potential of MLS data, you can uncover hidden opportunities, improve your marketing, and grow your businesses, so don't limit yourself to the basic functionalities—unlock its full potential and watch your business thrive!