What Is the Multiple Listing Service?
If you are a novice just getting into the rough and tumble world of real estate, you may be wondering what, exactly, the Multiple Listing Service really is. It's a term that, no matter what role you play in the real estate game, you cannot avoid. Also shortened to "MLS," for short, the Multiple Listing Service mysteriously stands as some sort of opaque institution that sounds important, so you figure that it probably is. Well, the truth is that the Multiple Listing Service is quite important, but that it really isn't that complex or austere. In very simple terms, the Multiple Listing Service is simply a way for various independent real estate agents and realty companies to share their property information with each other. By implementing a MLS in a given area, all the participants can avoid getting their property undercut or taken out by another company or agent. Of course, things get a little more complex than that, but there it is, in a nutshell. Read on to learn a little more about this particular system.
Strength In Many: Many Into One
The beauty of the Multiple Listing System is how it allows for various real estate entities to unite and help each other out, and yet still maintain sovereignty and independence. But how, exactly, does this process take place? Well, it should be noted, right off the bat, that a contract is involved, and all parties that participate in the service are contractually obliged to follow all of the specific terms of the agreement.
The first step to the contract and agreement starts when a participating broker lists a particular property with the MLS as being worth a particular commission rate, available to all other participating brokers. In a way, the multiple listing service serves as an umbrella organization, under which all participating parties can partake in the listings made available. In a sense, it is a way for various brokers to share the commission received for a particular property. Although this information is usually available to the various realty participants in the service, the entire scope of information is typically not available to regular consumers who may be interested in the properties available in a given area.
Usually, individual owners who are looking to sell their property cannot directly place their property onto the multiple listing service's list of properties. However, there are ways in which they can circumvent the process. By paying a flat fee to a local broker, for example, to list the property, they can get their property onto the wide-ranging MLS list. By doing this, however, they limit their options when it comes to receiving full payment. Another kink in the process is that directing potential brokers or sellers to direct all funds received to the seller is usually prohibited by most MLS participants. In general, then, if you are the owner of a property and wish to place it on the MLS listing, you will have to find a broker who is willing to place the property on the list, and who will then receive part of the commission accrued when the property does get sold.
If you are on the other side of the fence and wish to view all of the listings that are contained within a particular MLS, there are a couple things that you can do. The absolute best way to accomplish this, however, is to contact a trusted real estate agent, who has complete and unfettered access to the listings. You'll still be able to see part of the listing, but very rarely the entire and complete list. Your real estate agent will have access to every single scrap of information. If you ask him or her to set you up with a home buyer's report, you should be able to receive all of the information that you need. Try to get as comprehensive of a report as you can, and avoid what is commonly called a "customer report," which is often scant on information and even misleading on prices.
The best part of having a home search report started for you is the fact that you can usually customize it with various criteria that are important to you and your family. You can request listings from a specific area, whether that area includes a particular ZIP code, neighborhood or even single street. You can also parse your search according to price, number of bedrooms, presence of a yard, whether or not a basement exists, garage space, acreage and so forth.
