What Is The Multiple Listing Service (MLS) In Real Estate?

When you’re buying or selling a home, it’s critical that your agent be able to connect with other real estate professionals to help you see a larger pool of homes or get access to a larger pool of buyers for the home you’re trying to sell. That’s where the multiple listing service (MLS) comes in.

The MLS is a powerful database and a vital tool in the real estate industry that helps real estate professionals share information quickly and easily. Someone buying a house can easily connect with local homes for sale, while home sellers can quickly get their homes in front of buyers.

What Is The Multiple Listing Service (MLS)?

In real estate, the multiple listing service (MLS) is an online network of local databases for real estate brokers to share information about their properties for sale with each other. Multiple listing services are created, maintained and paid for by real estate professionals, allowing brokers to connect buyers more easily to sellers for mutual benefit.

The database provides information on properties for sale, including pictures and detailed descriptions, along with confidential documents like Seller’s Disclosures. The MLS is updated throughout the day, so brokers can find new listings for their buyers almost immediately after they’re listed. So, if you’ve ever wondered why your real estate agent can find new homes before you spot them on Zillow, it’s thanks to the MLS.

Not everyone can view the MLS. It’s a private database only accessible by licensed real estate agents working under a broker who participates in that local network. To gain access to the most up-to-date MLS listings as a buyer, you must work with a licensed real estate agent or REALTORS^®  in your area.

How Does The Multiple Listing Service Work?

An MLS is a local database that only covers a specific geographic region or area. Both buyer’s agents and seller’s agents must pay membership fees and meet certain requirements set by the National Association of REALTORS^® to gain access to an MLS. This allows them to see and market local homes to their clients.

Brokers can participate in multiple MLSs, but they must pay separate membership fees to belong to each one. A broker is likely to participate in more than one MLS if they serve a large geographic region or have multiple offices throughout a state or part of the country.

Sellers’ agents list their clients’ homes for sale on the MLS, while buyers’ agents can search the database for potential homes their clients may like based on their criteria. Sellers can’t list their homes on the MLS on their own, nor can buyers search through the database on their own.

How Buyers And Their Agents Use The MLS

When a buyer’s agent works with a buyer to find homes to purchase, the agent will ask about the wants and needs of the buyer and help narrow down their search for a new home.

The agent will use these criteria to search for a home on the MLS. Not only may this information not be available on other real estate listing sites, but the MLS also includes additional information that is not always made public on these other sites, such as private contact information and home showing schedules.

When they find homes that match the buyer’s needs, they can use information in the MLS to schedule showings or notify the buyer of open houses.

How Sellers And Their Real Estate Agents Use The MLS

A listing agent – also known as a seller’s agent – works with a homeowner who wants to sell their property. To help market the home, the agent will gather data about the property and upload that data into an MLS listing.

Each listing on the MLS will be different, and the information it provides will depend on what the listing agent chooses to include. Here are a few pieces of information most MLS listings will include:

• Age of the home
• Size of the home
• Number of bedrooms and bathrooms
• Unique or standout features
• Interior and exterior pictures

What Is An MLS Number?

An MLS number is an identification number assigned to a specific MLS listing. An agent can use an MLS number to access information about a property listed for sale and quickly find that property. It also helps to differentiate different properties, which is especially important when an agent has many clients who are looking at multiple homes.

Benefits Of Using A Multiple Listing Service

Real estate professionals have invested heavily in the MLS over the years, both to develop it and to use it in their work, and it’s clear why. It’s an invaluable tool for all parties involved.

• For real estate agents: Real estate professionals can easily share information about homes listed in the local market and earn a commission by assisting in a property sale. The MLS also allows real estate agents and REALTORS^® to provide the best experience to their clients, whether that’s marketing a seller’s home or helping a buyer find one.
• For sellers: The widespread sharing of information through the MLS helps simplify the selling process for homeowners trying to sell their homes. The MLS gets more potential buyers looking at a property. It can also help sellers price the home strategically by providing information to their agents about local market conditions.
• For buyers: A buyer looking to purchase a home will be able to better find what they’re looking for when buying a house with the help of an MLS. They may find more options for what they want, especially if they are picky. They may also be privy to new homes as soon as they hit the market and could beat out other potential buyers.

MLS Alternatives

In situations where the local MLS isn’t appropriate or available, there are some alternatives that agents, buyers and sellers can use to connect with each other.

Pocket Listings                                                                                    

A pocket listing is an off-market property listing, meaning it’s not listed on the local MLS or through any other public avenues. Instead, pocket listings are marketed through word of mouth. A listing agent on a pocket listing may personally reach out to brokers or agents to invite them to attend an open house or view the home.

Pocket listings certainly aren’t the norm, but they also aren’t necessarily uncommon. A seller may opt for a pocket listing if they only want to market the home to an exclusive list of potential buyers or if they want to keep the sale private. For example, a public figure might use a pocket listing to avoid publicly listing their home for sale.

Online Listings

Today, there’s no shortage of online real estate sites where sellers can list homes for buyers to find. Many sellers and listing agents post homes on real estate sites at the same time they post them on the MLS.

It’s important to remember, however, that you don’t have to choose between an MLS listing and an online listing. Using both strategies can help increase your buyer pool and get the best possible offer for your home.

For Sale By Owner (FSBO)

As we’ve mentioned, the MLS is only available to brokers and agents. If you’re selling your home For Sale By Owner (FSBO), then you won’t be able to list your home there. The good news is FSBO sellers can still list their homes on real estate listing sites, meaning buyers and sellers can still find one another.

The Bottom Line

The multiple listing service can help real estate agents or REALTORS^®, sellers and buyers in a real estate transaction by providing important information on homes for sale and giving those homes more exposure. However, it’s only accessible to real estate professionals, which is one of the many reasons why you should work with a licensed real estate agent.

While the multiple listing service provides invaluable information that can help move buyers and sellers forward in a home sale, educating yourself on home buying and home selling can also assist you with your transaction, making it easier to navigate the real estate world.

To get started on your home buying journey, find a real estate agent in your area through Rocket Homes^SM.