MLS: What is MLS?

The Multiple Listing Service (MLS), according to RealEstateWiki.com, began as a periodic publication (MLS Book) designed to allow the listings of broker or agent members to be distributed to large numbers of other member real estate brokerages and agents.  Today, the MLS is usually an Internet based service, which is accessed by all member brokers and agents to list or to search for properties on behalf of their clients. 

MLS is defined by the National Association of Realtors® as "a facility for the orderly correlation and dissemination of listing information so participants may better serve their clients and customers and the public," "a means of enhancing cooperation among participants," and as "a means by which authorized participants make blanket unilateral offers of compensation" among other functions. Today there are over 800 MLSs operating across the country, most of them governed by or affiliated with local Realtor® trade associations.

In some states, more than one listing service may exist; some covering certain cities, surrounding areas or counties.  On January 1, 1993, the MLS rules were changed to give sellers the option of offering sub-agency.  Sellers are permitted to offer cooperation to participating members, regardless of whether they are subagents. 

More than just a data warehouse, MLSs are marketplaces for showcasing housing prices and amenities. They have been cooperatives that provide neutral ground on which industry competitors cooperate and marketing portals which disseminate listing information.  MLS organizations also provide the central security that monitors the quality of property information while guarding private information about listed properties.

The public often confuses companies such as Realtor.com, Zillow, Trulia, Homes.com, HouseValues and HomeGain as MLS companies, when in fact they are not. Some of them are real estate portals, while others are lead generation companies or vertical search engines. To understand MLS and to read more about all the different type of companies that today operate in the real estate listing arena visit Real Estate Wiki.

Real Estate Wiki (www.RealEstateWiki.com) is a non-profit encyclopedia and wiki dedicated to the real estate industry.