Understanding the Multiple Listing Service When Buying or Selling a Home
If you’ve ever searched for a home on Zillow, Realtor.com, Redfin or another real estate website, you’ve probably seen thousands of properties advertised online.
But where does much of that information come from?
In many markets, the answer begins with the Multiple Listing Service (MLS).
The MLS is one of the most important tools in residential real estate. It connects real estate professionals and provides a centralized system for sharing information about properties offered for sale.
What Is an MLS?
MLS stands for Multiple Listing Service.
An MLS is a database and set of rules used by participating real estate professionals to share information about properties for sale.
There isn’t one single national MLS.
Instead, there are many regional MLS systems throughout the United States.
For example, different markets may use different MLS organizations and databases.
The important point:
An MLS is primarily a professional real estate information and cooperation system—not simply a website for consumers.
How Does an MLS Listing Work?
The process generally looks like this:
1. Seller Chooses a Brokerage
The seller enters into a listing agreement with a real estate brokerage.
2. Property Is Entered Into the MLS
The listing broker enters information about the property into the applicable MLS.
Information can include:
- Address
- Asking price
- Property type
- Bedrooms
- Bathrooms
- Square footage
- Lot size
- Property description
- Photographs
- Showing instructions
- Seller disclosures where applicable
- Listing terms
- Other required MLS information
3. Other Real Estate Professionals See the Listing
Participating brokers and agents can access the listing through their MLS system.
4. The Listing Can Reach Consumers
Depending on the MLS’s rules and syndication arrangements, listing information may be distributed to participating public real estate websites.
This is why a property listed in an MLS may eventually appear on multiple websites.
What Is the Difference Between an MLS and Zillow?
This is one of the most common questions.
MLS
A professional database used by participating real estate professionals.
Zillow
A consumer-facing real estate website that displays property information from multiple sources, including MLS feeds and other data.
The same basic concept applies to other consumer websites.
MLS → Data Distribution → Consumer Websites
The MLS is generally the underlying professional system, while websites such as Zillow provide a consumer-friendly search experience.
Why Is an MLS Listing Important?
For sellers, MLS exposure can provide access to a large network of real estate professionals.
A buyer’s agent searching for properties for a client may be able to find your property through the MLS.
That means your property isn’t relying solely on:
- A yard sign
- Newspaper advertising
- A personal website
- Word of mouth
Instead, it can be exposed through the professional real estate network.
How MLS Listings Help Buyers
The MLS is also extremely valuable to buyers.
A buyer’s agent can search for properties based on criteria such as:
- Price
- Location
- Bedrooms
- Bathrooms
- Property type
- Square footage
- Lot size
- Waterfront
- New construction
- Days on market
- Status
This can make it much easier to identify properties that meet a buyer’s requirements.
What Does “Active” Mean?
When you see a property listed as Active, it generally means the property is currently being marketed for sale under the MLS’s status definitions.
But MLS status terminology can vary between MLS systems.
Other statuses can include:
Active
Available for purchase.
Pending
The seller has accepted an offer and the transaction is progressing toward closing, subject to the applicable MLS status rules.
Under Contract
A contract has been accepted, but the transaction has not yet closed.
Closed/Sold
The transaction has been completed.
Withdrawn
The listing has been withdrawn from the market.
Expired
The listing agreement or MLS listing period has ended without a completed sale.
Status definitions can vary by MLS.
How Long Does an MLS Listing Last?
The listing period is established by the listing agreement between the seller and brokerage.
For example, a listing agreement might provide for:
3 months
6 months
1 year
or another agreed period.
A Flat-Fee MLS listing may also have a specified listing period.
What Happens When a Home Sells?
Once a property closes, the listing broker generally updates the MLS to reflect the property’s sold/closed status.
The MLS may then record information such as:
- Sale price
- Closing date
- Days on market
- Other transaction information permitted under MLS rules
This information can become useful when brokers prepare comparative market analyses (CMAs) for future buyers and sellers.
What Is MLS Syndication?
MLS syndication is the process of distributing listing information from an MLS to other websites and platforms.
A simplified example:
Seller
↓
Listing Broker
↓
MLS
↓
Syndication
↓
Consumer Real Estate Websites
This is why a properly entered MLS listing can potentially appear on many different websites.
Does Every MLS Listing Appear on Every Website?
No.
Distribution depends on:
- The MLS
- Brokerage
- Listing agreement
- Syndication arrangements
- Website policies
- Seller instructions
- MLS rules
Some listings may have limited internet exposure depending on the circumstances.
What Is a Flat-Fee MLS Listing?
A Flat-Fee MLS listing allows a seller to pay a predetermined fee to have a property placed in the MLS, rather than automatically paying a traditional percentage-based listing commission for full-service representation.
The services provided vary by brokerage and plan.
A Flat-Fee MLS seller may be responsible for more of the selling process, including:
- Showing the property
- Communicating with buyers
- Negotiating offers
- Managing certain transaction responsibilities
The brokerage provides the services specifically included in the Flat-Fee MLS agreement.
Why Sellers Use Flat-Fee MLS
A seller may choose Flat-Fee MLS because they:
- Want MLS exposure
- Are comfortable handling some aspects of the sale
- Want more control
- Want to reduce listing costs
- Have real estate experience
- Want to market the property themselves while obtaining professional MLS exposure
It isn’t necessarily right for every seller.
Netrealtynow.com Flat-Fee MLS
Netrealtynow.com offers Flat-Fee MLS services designed for sellers who want professional MLS exposure without automatically paying a traditional percentage-based listing commission.
Depending on the selected plan, services may include:
- MLS listing
- Listing syndication
- Property description
- Photos
- Showing instructions
- Listing changes
- Contract-related assistance
- Additional broker support
Services and pricing vary by market and plan.
MLS vs. FSBO
A FSBO (For Sale By Owner) property is marketed directly by the owner.
A seller can potentially sell FSBO without putting the property into an MLS.
However, the seller may miss exposure to buyers and buyer agents searching the MLS.
Flat-Fee MLS
The seller can obtain MLS exposure while retaining more responsibility for the sale.
Traditional Listing
The broker generally provides comprehensive listing and selling services for an agreed commission.
FSBO
The owner handles the sale directly.
Can a Buyer Buy an MLS Property Without a Realtor®?
Yes.
A buyer is not required to use a Realtor® simply because a property is listed in the MLS.
However, a buyer may choose to have a licensed real estate professional represent them.
At Netrealtynow.com, we now offer buyer representation, including:
- Property searches
- Showings
- Market analysis
- Offer preparation
- Negotiation
- Inspection coordination
- Transaction management
- Closing assistance
Eligible buyers may also qualify for a buyer rebate, depending on the transaction and buyer representation agreement.
Does an MLS Listing Guarantee a Sale?
No.
An MLS listing provides exposure, but it doesn’t guarantee that a property will sell.
The price, condition, location, marketing, competition and market conditions all matter.
A poorly priced property can sit on the MLS for months.
A properly priced property can generate multiple offers quickly.
That’s why pricing strategy is just as important as MLS exposure.
How Much Does an MLS Listing Cost?
There is no single national MLS listing price.
The cost depends on:
- Brokerage
- MLS
- Market
- Listing plan
- Level of service
- Listing period
Traditional brokers may charge a percentage-based commission.
Flat-Fee MLS brokers charge a predetermined fee for specified services.
MLS Listings and Real Estate Commissions
An MLS listing and a real estate commission are two different things.
You can potentially have:
MLS Exposure
without paying a traditional percentage-based listing commission.
That’s the basic concept behind Flat-Fee MLS.
However, sellers should carefully review the listing agreement to understand:
- What services are included
- What services are not included
- Any additional fees
- Buyer-agent compensation arrangements
- Seller responsibilities
The MLS Is More Than an Advertising Website
The MLS serves several important functions.
It helps real estate professionals:
Share property information
Find properties for buyers
Cooperate with other brokers
Track listing activity
Analyze market data
Prepare comparable sales analyses
Monitor property status
Facilitate transactions
That’s why MLS participation remains such an important part of residential real estate.
Why MLS Knowledge Matters
Getting a property into the MLS is only the beginning.
The important questions are:
- Is it priced correctly?
- Are the photographs effective?
- Is the description accurate?
- Is the property categorized correctly?
- Are showing instructions clear?
- Is the listing being syndicated properly?
- Is the listing attracting showings?
- How does it compare with competing properties?
MLS exposure gets your property into the marketplace.
Good pricing and marketing help turn exposure into offers.
Netrealtynow.com: MLS + Experience + Choice
Netrealtynow.com provides sellers with several options.
Flat-Fee MLS
For sellers who want MLS exposure and are comfortable handling more of the sale themselves.
Full-Support Flat-Fee MLS
For sellers who want additional professional assistance.
Full-Service Representation
For sellers who want an experienced broker managing the transaction.
Buyer Representation
For buyers who want professional representation when purchasing an MLS-listed property.
Frequently Asked Questions
What does MLS stand for?
Multiple Listing Service.
Is the MLS a website?
Not primarily. It is a professional real estate database and cooperation system. Some MLS organizations provide public-facing search websites.
Is Zillow the MLS?
No. Zillow is a consumer real estate website. It may receive listing information from MLS feeds and other sources.
Does every property have to be in the MLS?
No. Some properties are sold or marketed outside the MLS.
Can I sell my home using a Flat-Fee MLS?
Yes, depending on the market and brokerage’s service offerings.
Does an MLS listing guarantee my home will sell?
No. MLS exposure doesn’t guarantee a sale.
Can I buy an MLS-listed home without a Realtor®?
Yes. You can choose to represent yourself or work with another licensed real estate professional.
Ready to List Your Home?
If you’re considering selling your home, Netrealtynow.com can help you determine which option makes sense for your situation.