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.
Did you know? Real estate agents refer to their specific system as “The MLS.” However, there is more than one active database in the United States. Although numbers fluctuate, there are currently 535 MLS real estate systems certified by Real Estate Standards Organization (RESO). Each regional MLS has its listings and agents pay dues to list and access other agents’ listings on the MLS.
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.
 | Real estate agents who want to generate sales leads per location |
| |
 | Agents and brokers looking to generate leads and advertise on a single platform |
| |
 | Real estate professionals seeking affordable pricing structure for property advertising |
|
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)
Is listing in the MLS worth it?
Yes, listing in the MLS is crucial for agents. It enhances property visibility, reaching a wide audience of potential buyers through other agents and syndication to popular real estate websites. The MLS fosters collaboration among agents and facilitates efficient property transactions. Agents benefit from the exposure, networking opportunities, and streamlined processes the multiple listing real estate service offers, making it a valuable tool for success in the real estate industry.
What are MLS listings?
MLS property listings are real estate properties shared on the multiple listing service, providing a centralized database for homebuyers and sellers through their agents. These comprehensive listings include essential property details, aiding in informed decision-making. Buyers can access a diverse range of homes, while sellers benefit from increased exposure. The MLS serves as a vital tool, connecting real estate professionals and facilitating efficient property transactions in the market.
What is the MLS website?
The MLS is not a single website but a collective database used by real estate professionals to share property listings. However, many local real estate associations and brokerages have MLS websites where agents can access and manage property listings. To find MLS listings in a specific area, you would typically visit the website of the local real estate association or work with a licensed real estate agent who has access to the MLS database.
What does MLS mean for houses?
The multiple listing service (MLS) means widespread exposure for houses, as properties are showcased to a broad network of agents and potential buyers. MLS listings provide crucial details, aiding informed decision-making for real estate transactions. This exposure attracts more interested parties and fosters agent collaboration, streamlining the selling process. Ultimately, the multiple listing real estate service enhances the market visibility of houses, contributing to successful and efficient real estate.
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.
Add comment