Use Neighborhood Info to Farm for Listings

One of the easiest ways to learn about your own market is to pull statistics from your local MLS.  If you want to know how the market is performing you can do a blanket search by zip code, or zip codes, in your area.  It's easy and quick.

But, if you want to find out where the hot spots are, or will be in your community, you can search by subdivision.   You can even break that down by street or streets in a given area.  I've been looking at a couple different neighborhoods in my area with the intent to begin farming them for future listings.  What I found surprised me. 

In one fairly small middle-to-higher end neighborhood (100-150 homes), I found that 10 homes have sold this year.  That's more than most similar neighborhoods in our community have sold in the past year.  That finding made me think about other neighborhoods.  As I surveyed the many subdivisions in our community I started seeing patterns form.

The MLS search can demonstrate what neighborhoods are struggling with the most short sales.  A quick look at an area's listings, and then a look back at the same area's sales in 2004-2008 will show you where the maximum number of short sales, or potential short sales, are and will be. 

If you're thinking about knocking on doors, mailing postcards or pursuing expired listings you may want to use your MLS first.  See what areas have the most listings and what areas have had the most sales.  Which ones are listed below the last known sale, which ones are being sold at fair market and which ones are over their last sale or last assessed value.  Overpriced houses often cling together.  You might want to eliminate the areas that are full of listings by no sales. 

Some of the best tools in your Realtor toolbox might be tools you're already paying for but not getting the maximum benefit from.  Start digging.  There is treasure in the MLS!