What Is MLS in Real Estate?
In real estate, the abbreviation MLS stands for Multiple Listing Service (or sometimes Multiple Listing System). An MLS is a database that real estate brokers use to share information and make offers of compensation among themselves. There are more than 800 MLSs in the United States, according to the National Association of Realtors.
-
Purpose of an MLS
-
The primary purpose of an MLS has to do with the compensation that real estate brokers share when they help people buy and sell homes. Typically, the seller will pay a commission based on the sales price to a broker. That broker will then share (or split) that commission with the broker who represents the buyer. This sharing of commissions is arranged through the MLS in the form of an offer of compensation.
MLS History
-
The first MLS was just a gathering of brokers at the local realty association giving each other information about the homes that were for sale. This trading of information dates back to the late 1800s. Later, realty associations published MLS books that included the addresses, asking prices and other information about the for-sale homes.
Computers and MLSs
-
Today, MLSs are computerized. Some MLSs (and some realty brokers) offer MLS information on websites that can be accessed by the public; however, the offers of compensation and notes put in by the broker (e.g., when the house may be shown to buyers) are kept private from the public.
MLS Ownership
-
Some MLSs are owned by the local realty board or state realty association. Others are owned by the real estate brokerage companies. Only members of the MLS can access all of the information or enter information into the MLS.
Benefit of an MLS
-
MLSs give home sellers more exposure for their home in the marketplace because the information is shared on websites and among realty brokers. MLSs give buyers the opportunity to find out about homes that are listed for sale on the MLS. An MLS typically doesn't include homes that are for sale solely by the owner without the assistance of a realty broker.
-
Related Searches
References
- Photo Credit home 3 image by Stacey Lynn Payne from Fotolia.com
