Sourcing Deals on MLS in 2026

For years, real estate investors largely wrote off the MLS as too competitive and too thin on margins to consistently produce viable deals, especially on distressed properties. That perception held true through the strong seller’s market leading up to 2025, when inventory moved quickly, and pricing left little room for error.

But that narrative is starting to change.

In the spring 2026 market, investors are beginning to see something that hasn’t been common in years: real opportunities on the MLS with more flexibility in pricing than expected, often allowing investors to secure distressed properties for thousands below asking.

The Market Shift Investors Can’t Ignore

Over the past six to eight months, the housing market has undergone a meaningful reset. Inventory is sitting longer, with median days on market reaching 78 days in January 2026: the highest level since 2020. At the same time, buyer demand has softened, forcing sellers to adjust both expectations and strategy.

The days of properties selling in under 30 days regardless of condition or pricing are largely behind us. Instead, listings are lingering, and price reductions are becoming more frequent and more aggressive. In fact, according to Redfin, 34.2% of home sellers cut their list price in February 2026, marking the highest February figure since 2012.

Combined, these trends signal a clear shift in leverage. Where sellers once dictated terms, buyers are beginning to regain negotiating power. For investors, this creates a more favorable environment, where disciplined underwriting and strategic offers can uncover opportunities on the MLS that were largely unavailable in recent years.

Sellers Are Finally Feeling the Pressure

One of the most important changes in today’s market is happening on the seller side. After years of strong demand and rising prices, many sellers are now facing a different reality: their distressed property isn’t moving the way they expected.

Sellers are finally feeling the pain of the housing market. They’re realizing their house isn’t going to sell in 30 days, and not for the price they had in mind. 

At the same time, holding costs are rising. Inflation remains persistent, with the March 2026 Consumer Price Index showing sharp increases across key categories, including a 21.2% jump in gasoline prices, the largest monthly increase on record.

This shift in expectations is critical. When a property sits without meaningful traction (i.e. limited showings, little buyer interest, and no strong offers), motivation begins to build. Sellers who once felt confident holding out for top dollar are now forced to reconsider their position. As that pressure increases, so does their willingness to negotiate.

Negotiation Is Back… And Deeper Than Many Investors Think

With seller expectations adjusting, negotiation has re-entered the equation in a meaningful way. In many cases, the flexibility seen today goes beyond what most investors assume is possible.

While list prices may still reflect outdated expectations, the actual transaction prices often tell a different story. Sellers are becoming more open to realistic offers from investors, particularly when faced with extended time on market and ongoing holding costs.

Rather than focusing solely on asking price, investors who engage and submit well-supported offers are finding that there is often meaningful room to create a deal.

The Opportunity in Aged Listings

Much of this opportunity is concentrated in properties that have been sitting on the market for an extended period of time. Listings that remain active for 60 – 90 days without significant activity tend to signal a disconnect, whether in pricing, condition, or buyer demand.

As time passes, the seller’s position becomes more difficult to maintain. Ongoing expenses such as taxes, insurance, and basic upkeep continue to add up, while uncertainty around the sale increases. In an inflationary environment, those holding costs only become more pronounced over time.

This dynamic shifts the seller’s priorities. What may have started as a goal to maximize price often transitions into a need to create movement and free up capital. For investors, that change in motivation creates leverage.

Why Distressed Properties Stand Out

Properties that need updates or fall outside of turnkey condition are often where the most flexibility exists. These homes (often well-maintained but not updated in decades) tend to appeal to a smaller buyer pool and therefore remain on the market longer. 

As time passes, sellers of these properties are more likely to adjust pricing expectations and become open to negotiation. The goal often shifts from achieving top-of-market pricing to creating movement and completing the sale. 

This is particularly true for vacant or underutilized properties, where the focus is less emotional and more driven by practical considerations such as cost, timing, and risk.

What This Means Going Forward

The MLS has not suddenly become an easy source of deals, but it has become far more negotiable and responsive to investor activity than it has been in recent years. As days on market increase and seller expectations continue to adjust, more opportunities are likely to emerge.

For investors, the takeaway is clear: the landscape has changed. Those who recognize that shift and adapt their strategy accordingly will be in a position to capitalize, while others may continue to overlook viable deals.

The above article was based on an interview with Brian Leibowitz, Director of Acquisitions at Dominion Properties. Dominion Properties is a cash home buyer in the greater Baltimore area, operating over 950 rental properties and transacting more than 100 homes a year. Brian is also a licensed realtor in the state of Maryland.