What Is the MLS? The Multiple Listing Service, Explained
You will undoubtedly come across the multiple listing service, also known as the MLS, whether you are in the market to purchase or sell a house. In many respects, this constitutes the very essence of what keeps the real estate industry afloat. However, what exactly is it? It is true that it contains a massive database of property listings, but it is not the only function that it serves. Let’s jump in!
A rundown of the various aspects of the multiple listing service
The Multiple Listing Service certainly appears to be a product of the modern era. In point of fact, however, the term “multiple listing” and the overall idea that underpins it were first developed back in the year 1907. In those days, the term referred to an archaic practise in which real estate agents would get together on a regular basis, either in their offices or at conferences, to discuss the properties they were trying to sell and to exchange information with one another in the hopes that their network could help them find buyers. 1908 was the year that the National Association of Real Estate Exchanges, the group that would later become the National Association of Realtors®, gave its approval for all real estate agents to use this particular method. From that point on, it gained popularity very rapidly and evolved into the sophisticated system that is in use today—one that is online and can be completely searched according to price, neighborhood, and home attributes.
The Multiple Listing Service (MLS) may give the impression of being a single massive nationwide database; however, it is actually a collection of around 580 regional databases. They are also highly possessive about their territory: Each local Multiple Listing Service (MLS) has its own listings, and real estate brokers must pay a fee to access and post houses on all of them. Because of this, real estate brokers who desire a wider reach for their customers could join more than one multiple listing service (MLS).
There is a developing pattern in which regional databases “share” listings without the requirement that real estate brokers become members of each database, but this is still more of an exception than it is the norm. In most cases, there is only one Multiple Listing Service (MLS) that possesses the keys, both figuratively and practically, to any given home.
Although there are a number of websites that aggregate house listings by using very condensed versions of MLS listings, realtor.com® is by far the most complete, as it contains 99% of all “for sale” properties that are posted on MLS in the United States. (And to toot our own trumpet even further, our listings are also the most accurate and up to date there are. Over ninety percent of “For Sale” listings are updated at least once every fifteen minutes, which is a feature that might come in handy in a home market that moves quickly and where every second can matter. OK, we’re done!)
The inner workings of the multiple listing service.
Because access to this database is restricted to licensed agents and brokers who pay for membership, home sellers are unable to submit their properties directly to the Multiple Listing Service (MLS). Once they have a client who is selling a home, they collect the necessary details such as the square footage, number of bedrooms, and other notable attributes—along with photos—and then post a complete listing on their client’s behalf, in the hopes that it will attract the attention of potential buyers.
When agents log in, they have access to a variety of data that they can either share with their customers in the form of insights or just use themselves to assist their customers run their businesses more effectively and strategically. And many of these aspects go much beyond the question of whether the driveway leading up to a particular property is built of gravel or asphalt.
According to Florida Realtor® Cara Ameer, real estate agents have the ability to upload and download documents on the Multiple Listing Service (MLS), including seller disclosures and HOA bylaws. Even if the information you’re looking for isn’t available on realtor.com, you should still consult with your real estate agent because they could be able to provide it for you with just the click of a mouse.
Optional replacements for the multiple listing service
In addition to listing their property on the Multiple Listing Service (MLS), homeowners who do not wish to pay a commission to a real estate agent have the option of using a “For Sale by Owner” (FSBO) website instead. However, do so while keeping both eyes open: It is not simple to sell a home on your own, and homes that are sold in this manner often bring in a lower price.
There are also a few prominent markets, such as New York City and Seattle, in which the Multiple Listing Service (MLS) is not the sole avenue for an agent to advertise a home for sale. When it comes to listing property in these areas, large real estate brokerages like Sotheby’s and Douglas Elliman use their own in-house databases rather than syndicating their listings on the Multiple Listing Service (MLS). If you want to make sure that every aspect of your property hunting is taken care of, you should check directly with the websites of these brokers in these areas in addition to using the channels that are more traditionally used.
What exactly is meant by a pocket listing?
Sometimes high-profile sellers who are working with an agent will decide not to list their home on the Multiple Listing Service (MLS) in order to protect their privacy for reasons such as avoiding attention or looky-loos. It is common practice to refer to a property that has not been registered into the MLS as a “pocket listing,” which literally means “hidden in an agent’s pocket.” That means that the prospective purchasers of the home with whom an agent works directly will be the only ones who are aware that the house is for sale.
However, if you’re just a regular Joe who wants to get the word out that you’re selling, the Multiple Listing Service (MLS) will bring you the most eyeballs—and the highest possible price—for your house. Typically, celebrities and other high-profile persons will attempt this path first.
