What is an MLS?
An MLS, also known as a multiple listing service, is tool used by real estate professionals to share information about real estate for sale in any particular area. Seller’s agents list the properties under contract for buyer’s agents to review and real estate appraisers can use the information within a listing to assist with an appraisal.
While there is no standard format for an MLS, there is specific information about available properties that is generally including in a listing like: property age, room sizes, price, condition, square footage, heating/cooling types, lot size, etc. This makes it easy for seller’s agents to easily distribute information about available properties to other agents and to the general public. Buyer’s agents generally review MLS listings when looking for properties for potential buyers as it reduces the amount of time an agent spends conducting research and improves commissions for that agent.
Many MLS services are restricted to only real estate professionals, though access is becoming more open as Internet sites are slowly beginning to make the information available to the public. Publicly available MLS services generally don’t contain as detailed information as a service available to professionals, though it is a good place for a potential buyer to begin their search for a new home before contracting with a buyer’s agent.
MLS listings are mostly confined to the United States and Canada, though other countries are slowly beginning to adopt the format. This will generally make finding international properties a bit tougher than domestic ones.
Generally, for sale by owner (FSBO) properties are prohibited from inclusion in an MLS, though many FSBO Internet sites have been created to overcome this limitation. If a buyer is interested in for sale by owner properties, an MLS is not the place to begin looking.
All in all, for the average homebuyer, an MLS, whether public or agent exclusive, is a prime place to find potential properties. A buyer can review properties and create a list of potentials without ever leaving the comfort of their home or real estate professional’s office, making the search a more pleasant and efficient one.
