What is the MLS, even?
Why is my agent talking about a Mysterious Little Salamander?
Whether you are looking to buy a home or sell one, you’ve likely spoken to an agent and heard them say something about “pulling comps from MLS” or “listing on MLS.”
While it seems like they are speaking a different language, I’m here to help you understand what they mean and the greater context.
Multiple Listing Service
MLS is short for Multiple Listing Service. Agents and brokers may also call it the “local marketplace” or the “broker’s marketplace.” All of these are synonyms - don’t let an agent lead you to believe they have an exclusive network for your special situation.
The MLS serves a variety of purposes, many of which include:
Transparent and instant access to all local home listings
Accurate, up-to-date and verifiable information about active listings and past sales
Maximum consumer choice, providing options for agents and brokers to work with
Encourages different compensation models to thrive
Fosters competitive pricing and market competition for business of all sizes.
Why it Matters: Sellers
More Buyer Attention For Their Homes
The exposure difference between selling your home on your own vs listing your home on the local MLS is staggering. Similarly, working with a local agent with access to your MLS will allow people in the area to see it, rather than someone from out-of-area posting in their local marketplace.
A Greater Chance of Earning More
Homes listed in the local MLS sold for an average of 14.8% more than off-market properties between 2019-2022. More exposure means more views and more competition for your home.
Centralized Marketplace for Buyers and Sellers
You can think of the marketplace like a superstore - it has all properties conveniently located in one place! Land, condos, single-family homes, duplexes, apartment complexes, distressed properties, turn-key investment opportunities, etc. When you list your home where everyone goes, everyone will see it.
Why it Matters: Buyers
An Inclusive, Accessible Market
Buyers can easily access the most homes for sale, free from discrimination, regardless of which broker they choose to work with or how much that broker is being paid for his or her work.
Consumer Choice
The access to all listings forces competition among selling agents and buyer agents - from how they are paid to specific expertise to customer service - all at market driven prices.
Secure Marketplace
Only agents and brokers with MLS access can list properties, adding an extra level of protection for you against scammers. Spend 5 minutes on a social media market place to find out how important that is.
What About Online Searches?
The MLS has been around for decades, and is only available for agents and brokers to view. You may be asking yourself why you would need this, and an agent to access it, if you can just find everything on one of the many home search websites available.
I’ll give you three guesses as to where they are getting their data.
With the exception of a select few, the biggest names in home search websites are all pulling home listing information from the same source - the local MLS. There are even some localities these websites will not provide home listing information for, because they don’t have access to the service.
If you are a seller thinking of listing with one of these websites specifically because it may be cheaper on the front end, you may lose out on money due to the decrease in views on your home.
