A General Description Of The Multiple Listing Service (MLS)

The Multiple Listing Service (MLS) is a system that permits real estate agents to share property listings. The concept goes back to the late nineteenth century when brokers got together informally at local association offices and communicated details about properties they were hopeful to sell. Commissions were provided as incentives for assistance in finalizing specific sales. Selling property was a joint effort and soon the collaboration of real estate agents turned into that old saying about "one hand washing the other," although the hand referred to a real estate deal.

The MLS provides a vehicle for "unilateral offers of compensation," which means the rate of commission provided by a listing agent becomes a known fact among other cooperating brokers. Even though such offers are thought to be contractual obligations, a commission rate can still be negotiated on the part of the listing agent and the agent representing the homebuyer.

An array of rewards are exclusively awarded to those brokers who take part in MLS systems. All information within the MLS system is updated frequently as it is in the best interests of all for the system to maintain the most current accurate information on all available homes for sale. MLS information pertaining to available homes for sale is freely obtained by any and all subscribing brokers. Public real estate websites are restricted in that they only display limited information about properties for sale, unlike MLS whose data fields are packed with facts relating to all listed homes.

Although MLS is criticized for its limited aspects, things are gradually opening up as more and more Internet sites are allowing homebuyers access to certain sections of MLS listings. There is no way anyone can consider MLS to be open to everyone as limitless access is still restricted to those real estate agents who have been compensated proportionately to the value of the sale of the property.

The economic principle of supply and demand in addition to the importance of establishing a stable market are considerations for the argument concerning whether real estate listings should be accessible to all. Limits in the ability to assess similar properties, past sales and monthly statistics certainly hinder the abilities of public web sites and are a legitimate cause of objection.

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