In the real estate business, MLS is an acronym that stands for “multiple listing service”, “multiple listings service” or “multiple listing system”. Real estate brokers and agents pay a fee to become members of the local multiple listing service and list properties with the company. Real estate agents are carefully screened before they can submit MLS listings, and must be properly licensed by the state and be a member of the National Association of Realtors.
MLS Database
The local MLS database contains all of the properties for sale in that area. Real estate agents pay the local MLS in order to submit information about the properties that they are attempting to sell. Real estate agents working with prospective buyers also pay a subscription fee to view listings. By using the MLS, agents can easily contact one another to arrange showings on behalf of their clients.
MLS Listing
A MLS listing available to the public contains basic information about the property for sale. At the very least, the MLS listing should contain the asking price, the square footage of the house or land for sale and in the case of a house, the number of bedrooms and bathrooms. Most listings contain much more information and are carefully crafted to encourage other agents and prospective buyers to view the property. These listings could include photographs, property features, information about local schools and the age of the house.
A real estate agent that subscribes to the full local MLS listings will also see the commission rate of the agent that listed the property. Although the commission rate may be negotiated between the two agents at the time of sale, listing the expected compensation increases transparency within the real estate profession.
A full MLS listing can contain extensive information about the property that is not available to the public. This helps real estate agents screen properties quickly and avoid touring houses that are unsuitable for a prospective buyer.
MLS Number
Instead of using street addresses, real estate agents use MLS identification numbers. When a piece of property is listed with an agent, the local MLS assigns it an identification number. MLS numbers are particularly useful in areas where there may homes for sale that have very similar addresses. If a prospective buyer sees a home he likes online, he should look for the MLS number to give to his real estate agent.
