Options to Get Your Wholesale Deals Listed on the MLS – A brief overview
In most places, real estate wholesalers are not legally permitted to list properties on the Multiple Listing Service (MLS) because they typically do not have ownership rights for the property they are attempting to sell. The MLS is a platform used by licensed real estate agents and brokers to share property listings with each other and facilitate transactions. To list properties on the MLS, one usually needs to be a licensed real estate agent or broker.
However, there are some strategies that wholesalers might use to get their properties onto the MLS. Below is a brief overview covering 6 of the most common options.
- Working with a Brokerage: Some real estate brokerages may have programs or arrangements that allow non-licensed individuals to market properties through them. This could involve becoming an affiliate or an assistant within the brokerage.
- Co-Wholesaling/ Joint Venture with a Real Estate Agent: In this scenario, the wholesaler and the real estate agent form a joint venture agreement where both parties share responsibilities and profits from the sale. The wholesaler brings the property to the partnership, while the agent handles the listing and marketing aspects. The terms of the agreement, including commissions and fees, are negotiated between the parties.
- Utilize Flat-Fee MLS Listing Services: In some areas, there are flat-fee MLS listing services that allow individuals who are not licensed agents or brokers to list properties on the MLS for a fee. While the property is technically listed under the name of the licensed real estate brokerage, the wholesaler typically can retain control over the marketing and sale process.
- Becoming a Licensed Real Estate Agent or Broker: Wholesalers can choose to obtain a real estate license themselves, which would allow them to list properties on the MLS legally. This option requires fulfilling the educational requirements, passing the licensing exam, and adhering to state regulations. This can be time consuming and costly but once licensed, the wholesaler can act as both the seller and the listing agent for their properties.
- Utilizing Pocket Listings or Off-Market Deals: Instead of listing properties on the MLS, wholesalers can focus on pocket listings or off-market deals. These involve marketing properties directly to a network of buyers without listing them publicly. While this approach may limit exposure, it can be effective for wholesalers who have established relationships with investors and buyers seeking off-market opportunities.
- Working with Real Estate Investment Groups or Networks: Wholesalers can join or establish relationships with real estate investment groups or networks where they can share property deals directly with potential buyers. These groups often include investors, flippers, and other real estate professionals who may be interested in purchasing properties without them being listed on the MLS.
To wrap up, It’s crucial for wholesalers to familiarize themselves with local real estate laws and regulations, as well as ethical considerations, when pursuing these strategies. Consulting with legal professionals and experienced real estate agents can help ensure compliance and mitigate risks associated with listing properties on the MLS. As violating real estate laws, such as practicing without a license, can lead to severe penalties and legal consequences.
