What Is MLS in Real Estate? How It Works & Benefits

The multiple listing service (MLS) is the holy grail of real estate listings. Through this database, we unlock access to information about sold properties and ones that are currently for sale, are under contract, or have expired. It also encourages greater cooperation between listing and buyer’s agents. So, “What is MLS in real estate?” It’s the key to finding your client’s dream home, and I’m here to guide you through its benefits and alternatives. 

How the Multiple Listing Service Works

The MLS provides data about properties in various neighborhoods, including listing descriptions, pictures, pricing, and information on each home’s square footage and features. When agents sign an exclusive listing, they enter photos and property information into the multiple listing service. Once a property is listed on the MLS, buyer’s agents can access the information and arrange showings for their clients. This timeliness ensures that crucial data about a property is shared between the two parties.

All agents who are members of the multiple listings real estate service can co-broke any listing on the MLS. For instance, two agents or brokers can view a shared listing and work together to complete the transaction and split the commission. This scenario involves one agent representing the seller and the other representing the buyer.

How to Access the MLS

To access MLS databases, you must belong to a local real estate board. If you’re an agent, your principal broker usually has membership in local real estate boards, and you can join the same ones by paying the annual dues and fees. The general public cannot join the MLS. Only licensed brokers and agents have access to an MLS service and must pay dues or a membership fee to access each MLS. 

The price to access the MLS varies based on your location. In New Hampshire and Massachusetts, it is around $90 quarterly, whereas in New Jersey, the MLS costs about $200 yearly. Even though each MLS may have its distinct practices, most adhere to the guidelines established by the National Association of Realtors (NAR).

Information the MLS Provides to Agents & Brokers

The MLS is typically the hub for the most accurate, up-to-date, and comprehensive property details. You’ll find information like the square footage, property type, appliances, annual taxes, and utilities. Additionally, this is where you will get details on showing procedures, renovations, and expired or foreclosure listings. Agents and appraisers can use this information in their research to calculate home valuations and prepare comparative market analysis (CMA) reports.

The multiple listing real estate options include details about a property’s history on the market. Real estate agents will see when it was listed, past sale prices, the owner’s name, and the listing agent’s name and contact information. Although not all fields are required and may not be available on each listing, it’s still an excellent tool to research a property to prepare it for sale or answer a buyer’s questions.

Does the Multiple Listing Service Contain All Listings?

The real estate multiple listing service typically contains a comprehensive database of properties listed by real estate agents who are members of the MLS. However, it does not include every property for sale. Some sellers choose not to list their homes on the MLS for privacy reasons or to explore alternative selling methods. Additionally, certain properties, such as for-sale-by-owner (FSBO) listings and foreclosures, might not be part of the MLS database. Agents should have a plan for managing and marketing listings that don’t get added to the MLS.

The MLS also may not include pocket listings—properties intentionally kept off the public market and shared only within a select network of agents. These exclusive listings are often used for privacy or to test the market before broader exposure. While the MLS listing service offers a comprehensive view of available properties, the presence of pocket listings and other off-market options means it doesn’t capture every property for sale.

History of the MLS

Before the MLS, real estate brokers and agents would gather regularly at local association offices to trade information about homes they were trying to sell, hoping this network could help connect them with buyers. After discovering that this ad hoc system lacked efficiency, they agreed to compensate the listing brokers, and the first MLS was born in the late 1800s.

At that time, the National Association of Real Estate Exchanges, now known as the National Association of Realtors (NAR), endorsed this system by all agents in 1908. From then, it evolved into the modern system in use today—a comprehensive property listing database that is online and fully searchable by several filters, including price, neighborhood, and home features.

Today, through nearly 1,000 MLS databases, real estate brokers share information on listed properties and invite other agents to cooperate in the sale in exchange for compensation if they produce the buyer. It benefits buyer and seller agents in various ways (listed below) and has become a cornerstone for real estate agent success.

Benefits of Using a Multiple Listing Service

The MLS was first created to quickly share listing information between agents. Today, successful agents leverage the MLS to access comprehensive property data and offer more precise insights into individual properties and the local real estate market. This efficiency ensures the delivery of accurate and in-depth information to enhance the overall client experience.

Here are more benefits of using MLS:

• Creates a comparative market analysis (CMA)
• Provides listing leads and accurately prices properties
• Reviews expired listing data for comparison or lead generation
• Builds trust and provides a premium service to clients, leading to referrals and repeat business
• Gives real estate agents a marketing edge
• Speeds up listing syndication to popular online platforms
• Levels the playing field by not giving the advantage to large real estate brokerages over small or individual brokers
• Offers scheduling tools for appointments and communicating feedback

Alternatives to Using the MLS

When a property is listed by an MLS member agent, it gets shared on well-known sites, such as Realtor.com and Zillow. But here’s the thing—not all agents or brokers are part of the MLS. If you’re not in the MLS, no worries. You can still showcase your property on numerous websites. The catch? Listing each site separately requires a bit more effort. Unlike the MLS, where syndication sites automatically catch updates, here are alternatives to multiple listing real estate service options to explore.

Providers	Best For	Features	Learn More
	Real estate agents who want to generate sales leads per location	Ability to preview ZIP code pricing before purchase Streamlined CRM Access to agent toolkit containing scripts, template, and handouts	Visit Zillow Premier Agent
	Agents and brokers looking to generate leads and advertise on a single platform	Ability to post virtual tours Ability to post unlimited listings for free Tenant screening tools	Visit Apartments.com
	Real estate professionals seeking affordable pricing structure for property advertising	Manual submissions of listings Combined advertising with Zillow through Premier Agent Pay-per-lead pricing structure	Visit Trulia

Don’t forget about the power of social media. Maximize your reach by listing a property on Craigslist and Facebook Marketplace. You can also find highly targeted audiences and generate real estate leads with Facebook groups and Instagram hashtags.

Multiple Listing Service Statistics

Now that we’ve covered what is multiple listing service, here are some interesting facts about the multiple listing service: 

• According to the National Association of Realtors (NAR), 5% of for sale by owner (FSBO) sellers marketed their homes on an MLS website. 
• RESO states there are around 600 MLS in the world, mostly in North America, but that number is quickly growing in Central and South America, Europe, and West Asia. As of June 2024, there are around 535 MLS systems in the US and 39 in Canada. 
• The country’s two largest Multiple Listing Services are the California Regional MLS (CRMLS) and Bright MLS. These two combined with over 200,000-plus members to collaborate on technology solutions for the MLS industry. 
• According to the National Association of REALTORS^®, over 80% of homes sold in the US are sold on an MLS.
• Homes displayed with an aerial shot are 68% likelier to sell.

Frequently Asked Questions (FAQs)

Bringing It All Together

So, next time you’re asked, “What is MLS in real estate? Explain that it’s a shared database where real estate professionals create, maintain, and share property listings. And while there are alternative platforms, the MLS provides incomparable data accuracy and exclusivity, making it a vital tool in real estate.