ShareREALTORS® have spent millions of dollars to develop Multiple Listing Services (MLS) and other real estate technologies that make the transaction more efficient. An MLS is a powerful tool to further cooperative agreements between brokers for the sale of their listings and provide information necessary to permit such cooperation.
In the late 1800s, real estate brokers regularly gathered at the offices of their local associations to share information about properties they were trying to sell. The first MLS was based on a fundamental principal that's unique to organized real estate: Help me sell my inventory and I'll help you sell yours.
Today, through more than 500 MLSs, brokers share information on properties they have listed and invite other brokers to cooperate in their sale. Sellers benefit by increased exposure to their property. Buyers benefit because they can obtain information about all MLS-listed properties while working with only one broker.
The real estate market is competitive, and the business is unique in that competitors must also cooperate with each other to ensure a successful transaction. MLS systems facilitate that cooperation.
The MLS is a tool to help listing brokers find cooperative brokers working with buyers to help sell their clients' homes. Without the existing MLS, brokers would create their own separate systems of cooperation, fragmenting rather than consolidating property information.
MLSs are also a powerful force for competition. They level the playing field so that the smallest brokerage in town can compete with the biggest multi-state firm. Buyers and sellers can work with the professional of their choice, confident that they have access to the largest pool of properties for sale in the marketplace.
Real estate information on the Internet is readily available. Consumers can access and view all publicly available listing information on the Web site of their broker of choice.
MLSs are private databases that are created, maintained and paid for by real estate professionals to help their clients buy and sell property. In most cases, access to information from MLS listings is provided to the public free-of-charge by participating brokers. Data that is not publicly accessible includes information that would endanger sellers' privacy or safety, such as seller contact information and times the home is vacant for showings.
NAR encourages innovation and competition in real estate brokerage, including different business models. NAR members are affiliated with real estate brokerage firms that operate using various business models, including full service, limited service, fee-for-service, and discount (regardless of the level of service).
