Anatomy of MLS (Multiple Listing Service)

The MLS is hands down the number one secret weapon of the real estate agent, no question about that. It is also largely misunderstood by the public.

So why is this so powerful? Let’s look at a simple definition of a multiple listing service to see how it works.

A multiple listing service is a shared database, amongst members, that makes an offer of compensation in return for co-operation.

Looking closer, an agent takes a property “listing” and inputs the data (like address, square feet, number of rooms, the commission split etc.) into the realtor database which is referred to as the MLS; now any licensed member (has to be a licensed agent and a member of the service) working with a buyer can sell that property and share the commissions; hence the offer of compensation for co-operation.

Did you know that less than 5% of listings are sold by the listing agent?

There are over 800 MLS’s in the US.

Once on the MLS the property benefits from total Internet exposure, since most brokers opt in on IDX (Internet data exchange, which is another e-form of co-operating for compensation) This means that all of our listings are included on the RE/MAX sites, Nothnagle site and all the local competitors sites that display listings besides their own. This is powerful, very, very….powerful, not to mention that the listing is also included on http://www.homesteadnet.com/ , realtor.com and the list goes on and on and on...

In our local association we have somewhere around 3000 members, and if what they say about each person knowing 250 people is true, then that represents a group of people who know 750,000 people. That is quite a network.