I’ve referred to the MLS in previous blogs, but I don’t know that I’ve explained what it is and why it’s so valuable, so here you go.
MLS stands for Multiple Listing Service, and it is a system whereby real estate agents in a specific geographic area share information about all the properties for sale (“listings”). Access to the MLS is restricted to real estate brokers, and by extension the agents that work for them.
For each property, the MLS includes address, photos, price, detailed descriptions, disclosures, access information (so the realtor can show the property), and more. The information’s available online and, ideally, offers everything a person would need to make a decision about whether to buy.
The MLS can also be used to match buyers with their ideal property by entering a wish list. The system will automatically inform potential buyers when a property matches their list.
In my opinion, your real estate agent must be a member of their local MLS to provide you with the service you deserve. Without the MLS, they’re working in the dark – offering you a narrower set of choices than you’d get with a realtor who checks the MLS regularly for updates. In addition to listings, the MLS also includes data about recent sales, so your realtor can accurately assess the fair market value of your home or the home you’d like to buy.
In the last year or so, some private listing services have tried to compete with the MLS. Within a region, a small number of offices have opted out of MLS and chosen only to share with each other. I really feel this is a disservice to the buyer and seller. Candidly, I see no advantage to these private programs because the MLS, when used as designed, provides the most information to the broadest audience. Also, with the traditional MLS, rules and a strict code of ethics have been designed to improve the relationship among all parties to make the entire transaction smoother and easier.
The MLS also feeds public and governmental online listing services. So, while brokers are the only ones who access the MLS, their willingness to enter all that data allows public sites like trulia.com, zillow.com, and realtor.com to be populated. “For Sale By Owner” (also known as FSBO) properties are not on the MLS, but nearly all other properties are.
A note of caution when listing your home: if you’ve upgraded your home without the appropriate permits, government databases fed by the MLS may give you away. If the county has your property listed as a house with three bedrooms and one bath, but you are selling a three-bedroom, two–bath house, flags may go up.
Next time I’ll write about why I’m optimistic about the housing market. If there’s something you’d like me to write about or if you have questions about real estate or property management, feel free to contact me at firstname.lastname@example.org or visit our website at www.realtyworldselzer.com. Dick Selzer is a real estate broker who’s been in the business for more than 30 years.