If only real estate agents have access to the MLS, why are they allowed to

[JMG]

become investors and flip property? Real estate agents have first hand knowledge of bellow market value properties. Only real estate agents have access to the MLS. They have clients that are selling their properties and clients seeking to purchase bellow market value. When bellow market value properties are available, Suddenly, real estate agents become investors and instead of making those properties available to potential qualified consumers or client, they buy the under market valued properties and flip them for a substantial gain.















If only real estate agents are allowed access to what I categorize or consider inside information similar to that of the stock market, why are they not held to the same standards?

[Willems_grandpa]

A real estate licensee has State and Federal disclosure LAWS that they must obey.















One of those discloses is to the seller of what values can be on their home. As-is and with some improvements. Also a licensee must disclose they are a real estate licensee and thus have knowledge of the real estate market, and the workings thereof. Also they must disclose when they purchase they are doing so to make a profit.















































Not all Licensees? belong to an MLS.















REALTORS have even more stringent rules that they are required to follow.































When ever anyone suspects unfair advantage taken by a REALTOR they are encouraged to let the local board know of it.















In some areas the state wants to know also (if you?re a party in the transaction).

[DJ B]

Most of us don't flip houses. I'm sure some do. But it's not as easy as you think. If you really are interested in being an invester, you work with a realtor that is knowledgeable in buying distressed properties. They will help you buy the ones you can afford to flip.































You don't pull your own teeth when they've gone bad do you?

[glenn]

If you want to "steal" houses from people look at the people that really make money "flipping" houses. They are the people that go straight to the public. Look at the ads for the investors that will buy your home in hours.































Those people are not required to abide by any kind of ethics and the legal requirements are very minimal. No one is there to help tell the seller that their home is really worth twice what they are receiving.































A house that makes into the MLS is represented by a licensed agent and is available to thousands of buyers who can bid on it.

[MommaBear]

Not quite: Real estate agents are not stock brokers, and their buying or selling of a property does not affect the value of the a company for other stockholders or manipulate the market to give a false idea of the worth of a company, which is what insider trading laws is designed to curtail.































Yep, they have first shot at properties. No doubt about it. That's why a lot of investors choose to get their license, to be able to plug into the network. But keep in mind that a LOT of "flips" are never on MLS in the first place, as they are immient foreclosures, abandoned properties, etc. Very few properties get listed on MLS waaay under value, if an agent has been doing their homework on comparables, etc. Also, an investor would be wise to make friends with a reputable agent who CAN be on the lookout for property that meets their client's criteria. Many, many agents don't have the desire or ability to make a flip work -- they'd much rather pocket the commission on several houses for the same client!































The only time it gets ethically shady is if an agent representing a client suddenly decides to buy that client's property. As it is impossible for the agent to be unbiased in such a transaction, an ethical agent would refer their client to another listing agent, an agent that will look out for the client's best interests.