What Is a Multiple Listing Service (MLS)?
A Multiple Listing Service (MLS) is an essential tool in the real estate industry, serving as a database where real estate brokers collaborate to share data about properties for sale. This arrangement allows brokers to view and access one another’s listings, ultimately connecting homebuyers with sellers seamlessly. Through MLS, both listing and selling brokers benefit by consolidating information and sharing commissions.
Typically, MLS platforms either create a printed book or an electronic database encompassing all the houses listed by affiliated brokers, updated regularly. These listings are then distributed to all participating members, either in print or online.
Key Takeaways
- A Multiple Listing Service (MLS) is a database that allows real estate brokers to share information about properties for sale.
- It facilitates brokers’ access to each other’s property listings, aiming to connect homebuyers with sellers efficiently.
- The MLS promotes cooperation and information sharing among real estate agents and brokers, leading to shared commissions.
How a Multiple Listing Service (MLS) Works
The origins of the MLS trace back to the 19th century when real estate agents recognized that collaboration could enhance their effectiveness by transcending individual brokerages’ property listings. Consequently, MLS began as an agreement among real estate agents to list properties collectively. Initially circulated through catalogs, most MLS listings today are available online.
While the concept of an MLS is standardized, no central governing body oversees MLS, and the term itself is not trademarked. Typically, local real estate brokers create regional MLS databases, collectively forming the comprehensive national listings found on various real estate websites.
Real estate agents and brokers usually pay dues or a membership fee for access to each MLS. They receive detailed information on homes in the area, including listings, photos, and specific details about properties. Access to the MLS is exclusive to licensed agents and brokers, who typically adhere to procedures set by associations like the National Association of Realtors (NAR).
Why Multiple Listing Services Are Needed
Despite the rise of digital real estate platforms, the need for MLS remains strong. An MLS provides a consolidated platform for brokers to access comprehensive property data quickly and efficiently. This service includes detailed listings, private contact information, and showing times that may not be available on individual websites. Without MLS, brokers would face the cumbersome task of visiting numerous brokerage websites to gather similar data on properties.
Benefits of Multiple Listing Services
The MLS offers considerable benefits to both selling and buying brokers, significantly increasing property visibility and options. This mutual benefit encourages fair competition among various brokerages, regardless of size.
Example: Imagine a small real estate agency that can only showcase the properties they’ve listed. Without an MLS, their clients would lack access to other available properties in the area. With MLS, data consolidation ensures all brokerage listings are accessible, allowing buyers to find their desired properties and helping sellers reach a wider audience.
Thus, through MLS database cooperation, potential homebuyers access numerous listings, and sellers find buyers more efficiently. Notably, online real estate platforms like Zillow, Redfin, and Trulia draw their data from these regional MLS databases.
Do I Need a Real Estate License to Access a Multiple Listing Service?
To view MLS listings, buyers or sellers usually need access through a real estate agent. Posting properties on the MLS requires a real estate license. For those uninterested in obtaining a license or utilizing full-service agents, various regions offer flat-fee MLS services to list properties.
What Fees Are Associated with the MLS?
Various MLS organizations exist nationwide, each with distinct fee structures payable by the real estate brokers within their network. The public typically is not charged directly by MLS organizations.
What is an MLS Number?
An MLS number serves as a unique identifier for each property in the market, streamlining the differentiation and retrieval process. This differs from NMLS numbers, which refer to registrations for mortgage loan officers within the Nationwide Multistate Licensing System.
The Bottom Line
The Multiple Listing Service (MLS) continues to be a cornerstone in the real estate industry, simplifying the search for properties for sale and facilitating the sales process. While new real estate platforms like Zillow and Redfin provide broad exposure, MLS remains the most accurate and up-to-date resource for property listings in most areas.
Related Terms: real estate broker, real estate agent, property database, real estate market, property sale.
References
- National Association of Realtors. “Multiple Listing Service (MLS): What Is It?”
- National Association of Realtors. “Handbook on Multiple Listing Policy”.
- Realtor.com. “What Is the MLS? The Multiple Listing Service, Explained”.
- NMLS. “NMLS Unique Identifier”.
