What is MLS?

An MLS (Multiple Listing Service) is a nationwide organization of property listings giving brokers access to real estate offered for sale. The purpose of an MLS is to help brokers browse a specific type of home for their buyers. MLS enables a more efficient marketplace between brokers by distributing this real estate information.

When MLS was first introduced in the 1800s, real estate brokers agreed that if one of them helped sell their houses, than the other broker would help them in the same way. Brokers agreed to compensate one another as the properties were being sold. Both sellers and buyers benefitted from MLSs because they equally had the same amount of exposure to the properties. MLS databases publish "Unilateral Offer of Compensation" meaning brokers are able to share a commission when buyers purchase a home. The only information available around that time had been printed in books, newspapers and magazines, but fortunately today, it is online, and searchable by many.

Both local and private MLS databases are monitored by realtors or by associations and groups of associations of realtors. This service can be privately owned and operated, or can be owned by other boards of realtors. Other ownerships of MLSs are allowed but most every MLS must follow regulations made by The National Association of Realtors.

Realtors are able to search these databases using MLS as a giant stockroom. Houses as they are introduced for sale and are sold are in essence coming and going through the stockroom. Without being able to use this feature, buyers and sellers would have to find their own means in advertising and would take more time in developing other systems to create more exposure.

When searching through MLS, you are able to view almost every characteristic of a home, address, age, size, school districts, and more. The reason that more in-depth MLSs are private is because the industry cannot risk endangering privacy or safety to the sellers.

MLSs are very efficient and economical ways of obtaining information in the housing market for both buyers and sellers. You could be searching for weeks trying to find the perfect home, but the perfect one may not be listed in the magazine that you picked up, or in your realtor's area. A buyer could miss the opportunity to view a home for sale because of the same reasons. Buyers and sellers are now able to work with professional real estate agents and are able to access the largest directory of properties for sale. Be picky about what requirements you choose to search for to not miss out on these opportunities. Your agent will be able to search for whatever is needed so have your criteria waiting and ready.