Multiple Listing Service – MLS
Reviewed by Aug 27, 2020| Updated on
Multiple listing is a service run by real estate brokers. Brokers come together to create a database of the properties available for sale, and this database is called a multiple listing service (MLS). The MLS enables brokers to see properties listed for sale in each of their localities.
What is Multiple Listing Service (MLS)?
The MLS arrangement helps brokers to list and sell properties by information sharing, leading to shared commissions. The database, either a book or electronic database, is updated on a regular basis. Since the database belongs to every broker in the setup, it cannot be trademarked or branded.
Typically, real estate agents must pay a membership fee to get access to an MLS. In exchange for this fee, they receive the information of houses for sale in a locality along with the photos and details, such as features of the property and square footage.
An MLS is supposed to follow the rules set out by the National Association of Realtors (NAR). The rules specify that the listing must mention the commission earned for the seller with the broker who introduced the buyer.
Why is Multiple Listing Service (MLS) Important?
MLS is an old system that enables brokers to share data.
MLS enables quick searching of properties across locations for a prospective buyer.
MLS provides a level playing field for brokers.
MLS gives the selling broker more prospective properties, while MLS gives the buyer more options to choose from.