MLS stands for multiple listing service. Every home for sale listed by a real
estate agent, unless it is specifically exempted from MLS, will be listed in
MLS. However, only real estate agents and other professional affiliates can
access MLS, but that doesn't mean a home buyer or home seller can't get the same
information -- just not directly.
Back in the old days, like the 1970s, MLS information was available in
print format. Books were published monthly; updates weekly. It was quite heavy
and cumbersome to haul around! Fortunately, today it's online.
What is MLS?
MLS is a sharing of comprehensive home information among real estate
professionals. Listings brokers enter the data about a home for sale and offer
to share the commission with a broker who brings a buyer. It's an online
software that contains all the specifics about a home, from the address, age,
square footage, number of bedrooms, baths, upgrades and schools districts to
types of financing the seller will consider, and more. There is generally at
least one to a dozen photographs of the home, plus a link to a virtual tour, if
one exists.
Home buyers make the mistake of believing they can access this information
through online feeds to other services, but the data the public can receive is:
Limited in scope
Can be outdated
Often inaccurate
For Sale By Owners in MLS
While there is no separate category for a For Sale by Owner (or FSBO)
listing, the MLS can contain listings from sellers who are unrepresented.
The way FSBOs circumvent some MLS restrictions is to pay a flat fee to a
discount real estate broker to enter the information, but the seller is not
really represented.
Instructions to present all offers directly to the seller is often frowned
upon or prohibited by MLS authorities.
Sometimes the selling commission is less than the fee agents are offered
by traditional brokers -- which does not motivate agents to show these listings,
even though they cannot legally refuse to do so.
Who Owns the MLS?
The trend is leaning toward local MLS companies joining or merging with
other local MLS companies to create regional MLS services. MLS can be privately
owned and operated or it can be an affiliate of a local board of Realtors, among
other forms of ownership, but most are subject to regulations set forth by the
National Association of Realtors.
Back in the '80s, many MLS were owned by boards of Realtors, but conflict
of interests and lawsuits caused many association groups to form a separate
entity for MLS. In my area of Sacramento, for example, members of MLS are not
required to be a member of the Sacramento Board of Realtors, nor the California
Association of Realtors, nor the National Association of Realtors.
Finding MLS Listings
Many services offer to provide home buyers with a list of available homes
on the market, but few provide comprehensive data. To get that information, you
need to ask your real estate agent to set you up on a home search. Typically,
there are many types of reports a buyer can receive, so ask your agent for the
most comprehensive report, the name of which varies by locale. What you don't
want is a customer copy. It's not enough information.
An agent can enter your name, e-mail and home search preferences into a
search engine on MLS that will send you automatic e-mails of new listings. This
way you will receive up-to-the-minute information that you can't really get
anywhere else.
MLS Searches
If you're beginning a home search, lucky you! You can ask your agent to
customize a search for you that will automatically send you updated listings.
Not all agents will set up a search for you based on anything other active
listings, so if you want to receive price reductions, pending or sold sales
data, ask for it.
Here are a few ways (among many) that you can request to have your report
customized:
ZIP Code
Radius Search, within a specified distance from a target address
Street or Subdivision
Within those parameters, you can further define your search to:
Price range from low to high
Number of bedrooms and baths
Garages
Pools and spas
Square footage
Your requirements can be even more clearly defined, depending on your
priorities. But be aware that as the number of exceptions climb, you might be
missing out on opportunities. It's wise to keep the list somewhat limited,
especially for those cases where a data field might not contain data due to
human error.
