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Whether you’re looking to sell or buy a home, you will no doubt encounter the multiple listing service, or MLS.
The site and service are, in many ways, the very lifeblood of the real estate business. Whether you’re looking for property in Brevard County, FL, or Long Island, NY, the MLS will be the first stop for your agent to find your new place.
So what is it exactly? Sure, it’s a huge database of home listings, but there’s a lot more to it than just that. Let’s jump in!
What is the MLS, or multiple listing service?
The MLS might seem like an invention of the modern age, but the term “multiple listing”—and the overarching concept behind it— was coined in 1907. Back then, the term described the old-timey practice in which real estate agents would gather regularly at offices or conferences to trade information about homes they were trying to sell, hoping this network could help connect them with buyers.
In 1908, the National Association of Real Estate Exchanges (the organization that later became the National Association of Realtors®) endorsed the use of this system by all agents. It quickly caught on from there, evolving, stage by stage, into the modern system in use today—online and fully searchable by price, neighborhood, and home features.
While the MLS might look like one large national database, it’s actually a suite of approximately 580 regional databases—and they’re quite territorial.
Each regional MLS has its own listings, and agents pay dues to access and post homes on each one. This is why agents who want a broader reach for their clients might become a member of more than one MLS.
There is a growing trend in which regional databases “share” listings without agents needing to become members of each, but that’s still more the exception than the rule. In general, only one MLS has the keys, both figuratively and literally, to any one home.
How does the multiple listing service work?
Home sellers can’t post their home directly to the MLS, because access to this database is limited to licensed agents and brokers who pay for membership. Once they have a client selling a home, they gather the necessary details such as the square footage, number of bedrooms, and other noteworthy attributes—as well as photos—and then post a complete (and hopefully eye-catching) listing on their client’s behalf.
When agents log in, they have access to a wealth of data that they can pass along to their clients—or just help them do their business better and more strategically. And much of this goes far beyond whether a particular listing’s driveway is made up of gravel or asphalt.
“Agents are able to upload and download documents on the MLS, such as seller disclosures and HOA regulations,” notes California and Florida real estate professional Cara Ameer.
So even if you don’t see the info you want on Realtor.com®, be sure to ask your agent, who might be able to deliver what you need with a mouse click.
Sometimes, high-profile sellers working with an agent will choose not to list their home on the MLS for privacy reasons, such as to avoid publicity or looky-loos. A property that is not entered in the MLS is often called a “pocket listing,” as in, “hidden in an agent’s pocket.” That means that only potential buyers with whom an agent works directly will be aware the home is on the market.
Typically, celebrities or other high-profile people might go this route; but if you’re a regular Joe who wants to get the word out that you’re selling, the MLS will get you the most eyeballs—and top dollar—for your home. (If you’re still interested in listing privately, however, you should be aware of the MLS specific policies surrounding pocket listings.)
If you’re trying to remove an old listing of your home from the internet, a call to the listing broker can help.
How to access my local MLS
As mentioned, access to the MLS is reserved for real estate professionals who pay the applicable fees. That’s the bad news.
The good news is that in recent years a public-accessible database has been made available, though it lacks many of the bells and whistles. A better bet would be to browse MLS listings on Realtor.com. Want to know what’s popping up in New Jersey or Florida? We’ve got you covered. Seeking new digs in Maine or California? You’ll find them here.
But the best way to access the MLS is through your agent. Often brokers will provide their clients with access to view listings. After all, they’re in the business of finding you your dream home. There would be no sense in keeping you away from the driver’s seat!
What fees are associated with the multiple listing service?
When a licensed real estate broker or agent looks into getting a membership, they have to go through a bit of a process. Nothing arduous, but it’s important that proof of being a member of a local real estate board or association is provided.
Membership in these organizations typically includes access to the local MLS.
Alternatives to the multiple listing service
Home sellers who don’t want to pay a real estate agent’s commission can also list their home on a for-sale-by-owner, or FSBO, site rather than the MLS. But do so with your eyes wide open: Selling a home on your own is far from easy, and FSBO homes typically sell for less money.
There are also a few high-profile markets—namely New York City and Seattle—where the MLS is not the only way to list a home with an agent. In these areas, large real estate brokerages such as Sotheby’s and Douglas Elliman use their proprietary databases to list homes rather than syndicating them on the MLS. So, in these markets, you might want to check directly with these brokers’ sites in addition to the usual avenues if you want to make sure all of your house-hunting bases are covered.