MLS what is it and how does it matter to me?

Hi Ashley, great question.

From Wikipedia:  A multiple listing service (MLS, also multiple listing system or multiple listings service) is a suite of services that enables real estate brokers to establish contractual offers of compensation (among brokers), facilitates cooperation with other broker participants, accumulates and disseminates information to enable appraisals, and is a facility for the orderly correlation and dissemination of listing information to better serve broker's clients, customers and the public. A multiple listing service's database and software is used by real estate brokers in real estate representing sellers under a listing contract to widely share information about properties with other brokers who may represent potential buyers or wish to cooperate with a seller's broker in finding a buyer for the property or asset. The listing data stored in a multiple listing service's database is the proprietary information of the broker who has obtained a listing agreement with a property's seller.

 

In the city you live in there may be an organized MLS. These MLS’s are typically run by a Realtor organization. For instance in Austin Texas, ABOR Austin Board of Realtors is the organization and administers, enforces and maintains the MLS for the greater Austin Real Estate area.

All Realtors and Brokers must maintain a membership separate from any State required licensing boards to participate in the MLS. This gives Realtors access to the listings maintained by the MLS and allows them to compile comparable sales information and trends in the market place so you are the best advised in the negotiation process.

Not all cities have their own MLS’s.  Some areas are combined with larger metropolitan systems simply because of economy of scale. These systems are complicated and expensive to develop and maintain and funded by the membership they service. Some larger cities have been slow in developing MLS’s simply because of fragmentation of a service area or the area Brokers desire to maintain and protect it’s clients listing information.

The consumer greatly benefits from these investments by their locale Realtor associations. Having the relevant sales information and all of the attending property information helps the consumer have better and more accurate data when making a buying decision.  

I hope this information is helpful.

Kind Regards

Bob Kenney, Realtor

Mobile: 512-922-4922