What is the MLS?

If you have been involved with real estate in any way over the last ten years, even if you've only looked at houses over the Internet, you are probably familiar with the term MLS. The problem is that, as with so many areas of our lives, most people think they understand more about the MLS system than they actually do. As a basic understanding of the MLS is at the heart of much of the information we have on this site, it's good to have a basic knowledge of the system before carrying on.

Definition

MLS stands for Multiple Listing Service. It's an idea that has been around for a long time. Brokers list various homes they have for sale within a database, and that information is open to other brokers who can help sell the homes. The information posted to the MLS is specific and in depth.

The Information Age has changed the face of the MLS as all of the information is now available electronically, and over the Internet that can mean instantly. A broker in Minnesota can now access MLS information on property in Omaha in seconds, rather than incur expensive communications costs or travel expenses.

Misconception

The availability of the MLS to all brokers who subscribe to the service has led to a great misconception amongst the public as to what the MLS actually is, one that can be quite confusing depending on how one is trying to buy or sell a house.

The MLS is not a system which can be readily accessed by just anyone. Remember, it was created by real estate brokerages to help them in their business, in other words to generate profit. If they were to let just anyone access the listings and all the information, the point of the MLS would be lost.

Therefore, the MLS is only accessible in its full detail to participating, fee paying brokerages in the United States. Individuals are not allowed access, and in some cases brokerages maintain exclusive MLS rules of their own.

That said, the face of MLS, along with the rest of the real estate world, is changing. The widespread availability of the Internet has allowed several open MLS programs to take root, and they may even thrive depending on pending legal decisions.

Within this environment, realtors and brokerages have begun to change the way in which they use and allow use of their MLS systems. Flat fees, menu programs, and consulting have all become a new part of the MLS and broker landscape.