What Is an MLS in Real Estate: How an MLS Works - 2021

A multiple listing service, or MLS, is an online database of home listings used by real estate professionals and buyers to see properties that are for sale in a particular region. An MLS helps brokers find and compare properties for their clients, establish contractual offers, share information amongst each other, and gather the information needed for home appraisals. Home sellers typically work with a real estate agent or broker to list their home on an MLS service. However, sellers who are listing their home as “for sale by owner” (of FSBO) can sometimes pay a flat fee to list their home on an MLS, but their access to the service may be limited. An MLS aggregates data on all of the real estate listings in a particular region depending on what the broker or buyer is looking for. The listing agent or listing broker hired by a homeowner will typically enter all the home’s listing information into an MLS. This will include photographs of the home, details such as square footage, number of bedrooms and bathrooms, nearby amenities, school districts, and the listing price. The MLS listing will also include the agent's direct contact information so that the buyer's agent can contact them. Brokers and buyers will be able to search for homes with their specific criteria in an MLS. Unlike third-party public online listing services, MLS services are not available to the general public. You will either need to secure access through your broker or pay for access. Public online listings services may be sufficient for certain home sellers and brokers, but there are benefits to using your local MLS when advertising your home for sale. Here is a brief overview of some of the benefits of an MLS. 1. __Visibility__: Properties on MLS databases will automatically make it on to several third-party listing sites in addition to the internal MLS system. This gives a for-sale home the highest probability of reaching the highest number of agents, brokers, and buyers possible. 2. __Up-to-date information__: An MLS is an accurate reflection of the real estate market in a particular area, with new homes constantly being added to the database. This means that brokers and homebuyers can depend on a steady stream of new listings, and an easy way to get a true sense of the current market. 3. __Comparing similar homes__: Real estate agents can use the MLS to compare the facts and figures of similar homes. In addition to seeing the price range, they can access a home’s listing history and community information. 4. __More reliable potential buyers__: If you've listed your property on an MLS, it is likely that you’ll attract more serious potential buyers because they're more likely to be working with real estate agents or brokers. If you're vetting potential buyers through the MLS system, you will likely do fewer showings, weeding out casual property enthusiasts and showing only to serious potential buyers. All you need is a [MasterClass Annual Membership](https://www.masterclass.com) and our exclusive video lessons from prolific entrepreneur Robert Reffkin, the founder and CEO of the real estate technology company Compass. With Robert’s help, you’ll learn all about the intricacies of buying a home, from securing a mortgage to hiring an agent to tips for putting your own place on the market. A Multiple Listings Service (MLS) is a database used by real estate brokers, agents, and realtors to facilitate the home buying and selling process.