What is MLS?
The multiple listing service or MLS in short is a system put in place to facilitate real estate brokers to share information about properties they are selling. This idea was started in 1800 where local associations shared information about properties they were selling to other brokers, according to the National Association of Realtor (NAR).
In return, associations and brokers compensated each other for sales and clients they provided to each other. This system helped real estate agents to cope with the complexity and competitiveness of the real estate market. The Multiple listing Service benefited all brokers involved in a transaction and their clients.
Properties listed would reach a vast number of buyers. This way every broker involved in the transaction would get a commission and the properties would be off the market faster.
Benefits of Multiple listing service or MLS
- Buyers: Buyers benefit from MLS because their real estate agent has access to all properties listed in the area they are interested in. This way, they will have a chance to choose the best property that fits their needs and budget.
- Sellers: Sellers benefit from MLS through exposure. In order words, the property they are selling will reach as many buyers as possible. More exposure increase sellers’ chances of selling their properties on time and at the best price.
- Agents: Real estate agents make money through commissions when they make a sale. Having properties available almost to every buyer and seller, agents flip their inventories fast and increase their commissions.
