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The MLS, or Multiple Listing Service, is a database real estate professionals use to share and find homes for sale. While first-time homebuyers and even seasoned homeowners might have heard of MLS, they may not be familiar with the role it plays throughout the home buying and selling process.
Whether you’re searching for a home in Omaha, NE or Newark, NJ, the MLS is your agent’s go-to resource to find your next home. Understanding how the MLS factors into the process can help you get the most out of your purchase or sale. These essentials will give you a deeper understanding of how the homebuying and selling process works. Let’s dive in.
In this article, we’ll be answering:
What is the MLS?
A Multiple Listing Service (MLS) is a database of homes for sale, produced and maintained by real estate professionals to help their clients buy or sell property. Homes for sale on the MLS are called listings. The MLS listings typically include key property information, such as exterior and interior details, asking price, taxes, and additional costs.
A brief history of the MLS
The MLS was first created in the United States in the late 1800s. Members of the Board of Realtors in a given area would meet and share information about what properties were for sale. During these meetings, realtors exchanged listing details and carried out the purchase of properties on behalf of buyers they represented.
How agents use the MLS today
Today, agents pay dues to access and list properties on their local MLS, which is why some choose to join multiple databases for a wider reach. A local MLS provides publicly available information about listings to interested buyers with detailed information on each property for sale, including features, square footage, and listing price, while keeping certain details private for security reasons.
For instance, sellers’ contact information and showing times are kept private for privacy and security. To access those details, buyers need to work with a licensed real estate agent.
Public access to MLS data
Although it may seem like a single nationwide database, the MLS is actually a network of about 580 regional databases, each with its own listings and membership requirements. These vary in size, covering local municipalities like the Chicago MLS Midwest Real Estate Data (MRED) to multi-county systems in rural areas like Portland, ME. Buyers can also access MLS information on websites like Redfin, where they can browse available properties before selecting an agent.
How does the multiple listing service work?
The multiple listing service works to make the process of buying and selling property easier. Home sellers can’t post directly to the MLS since it’s limited to licensed agents and brokers with memberships. Instead, agents gather property details—like square footage, bedrooms, photos—and post the listing on behalf of their clients.
Each MLS works a little differently, but here’s how it works in most cases:
- Listing a home: When a homeowner decides to sell, they will get in touch with a broker or agent, who has exclusive access to post listings on the MLS.
- Creating the listing: The agent will gather the necessary details about the property to complete the listing and will likely arrange for professional photography—all with the goal of making the home and listing as attractive as possible for buyers.
- Sharing the listing: Once the listing is live, it can be shared with potential buyers. Buyer’s agents will assist in getting the listing information out to their clients, so long as the property fits their client’s needs.
- Scheduling showings: Interested buyers will indicate which properties they want to tour, and their real estate agent can then schedule a showing.
- Making an offer: If the buyer likes the home, they can enter the negotiation process.
What information does an MLS include for a typical listing?
The MLS provides details to help buyers understand the current value of the home, its carrying costs, and its potential value. In other words, information that aids in real estate investing. Here are the essential details you should look out for:
| Listing Details | Structural | Interior | Features |
|---|---|---|---|
| Photographs & videos | Lot dimensions and square footage | Number of bedrooms & bathrooms | House style (such as Tudor house styles or Victorian house styles) |
| Asking price, taxes, and homeowners association (HOA) dues | Exterior details (siding, roofing) | Detailed room-by-room descriptions, including flooring | County & township, plus subdivision information if applicable |
| Days on market and original listing price | Year built (or lead paint notification) | Heating & cooling | School district information (elementary, middle, and high school |
| Seller’s disclosures, if any | “Green” features (solar, LEED certification) | Utility information (well vs. city water) |
Condo listing details to look for
When viewing condo listings, look for the following details:
- HOA management type: Understand who manages the property and how it operates.
- Pet policy: Check for restrictions on pet types.
- Storage availability: Look for designated storage areas or extra space outside the unit.
- Parking details: Confirm parking availability and whether the spot is deeded to the unit
- Unit exposure: Note the unit’s exposure to natural light (north, south, east, or west)
Tax advantages: Listings should disclose any tax reductions the previous owner received (i.e. reduced property taxes for senior citizens). If not, contact your accountant or financial advisor to understand the property’s tax implications.
How can I look for homes on the MLS?
Through a real estate agent or broker
To look for homes on the MLS, you’ll need help from your real estate agent or broker. MLS access is limited to real estate professionals who pay an annual membership fee. When you work with an agent or broker, they will give you access to a portion of the MLS that matches your search criteria. Typically, this is done through email, a special log-in, or both.
On your own with a real estate license
If you have a real estate license and pay a small fee, you may be able to access the MLS on your own—though MLS policies vary by region. Some MLS databases are made accessible to anyone with a license, while others require that you are also active in the real estate market. In other words, you are actively assisting buyers and sellers with their real estate transactions.
On the Redfin website
Luckily, you can get up-to-date home listings on redfin.com. As a brokerage website, Redfin pulls listings directly from the MLS, ensuring fast updates after a listing broker initially lists the property or makes updates.*
How many MLSs are there and who updates them?
The Real Estate Standards Organization (RESO) sets standards for and certifies multiple listing services. According to RESO, there are 525 certified MLSs operating in the United States. You can look up an MLS’s certification report on the RESO website.
The MLS of a specific area is managed by a group of real estate professionals, agents, and brokers. For example, the Colorado Springs, CO multiple listing service is run by Pikes Peak REALTOR® Services. Some of the time, the group managing an MLS has some connection with the National Association of Realtors (NAR), but not always.
Who updates MLS listings?
The listing agent is responsible for updating individual property listings. MLS platforms refresh at different rates based on how it integrates its data. If the listing agent has made any updates, the MLS will reflect those changes, showing the new information.
Are all homes that are for sale listed on the MLS?
The short answer is no. There are three instances where a home may be for sale but is unlisted:
Homes for sale by owner (FSBO)
FSBO properties are not allowed on many MLSs. This happens when the MLS only accepts listings from licensed agents and brokers. In some areas, FSBO sellers can list their property for a flat fee. At Redfin, we source the FSBO listings from Fizber.com and FSBO.com.
Pocket listings
Pocket listings are homes for sale where the selling agent only shows the home to a select group of buyers. These listings are considered “off-market” and are not available to the public. While this offers privacy to the seller, it limits the property’s exposure to potential buyers.
To address this, the National Association of Realtors (NAR) introduced the Clear Cooperation Policy (CCP) for all NAR-owned MLSs. The policy requires that any listing publicly marketed (via signs, websites, or ads) must be submitted to the MLS within one business day for broader buyer exposure, though some exceptions exist. In some markets, as many as twenty percent of properties for sale are pocket listings.
While NAR officially banned this practice in 2019, the ban wasn’t enforced and pocket listings have been on the rise ever since. The reason these listings can be problematic is that it prevents certain buyers from participating in the real estate market, leading to unfair housing practices.
Newly constructed homes
Sometimes builders opt out of working with a real estate agent to sell their development. You’ll see this happen more often when the market is hot and builders don’t necessarily need to bring buyers in.
Benefits of Multiple Listing Services
While the MLS is created for and maintained by real estate professionals, it benefits many aspects of the real estate market and the people with stakes in the market. The MLS brings transparency to the real estate system – everyone can see what’s selling at what price—which is crucial to creating and maintaining a fair housing market.
How it benefits agents
An MLS is a great real estate agent resource offering many business benefits. It allows agents to easily share listings with buyers, often through a portal to view matched properties. When the buyer finds something they like, they can easily communicate their interest to the agent and schedule a tour.
Agents can also promote homes they’re representing to thousands of potential buyers. They can easily tweak the listing details to make the property more attractive or update the listing if anything significant changes.
How it benefits sellers
Home sellers also benefit from the MLS. The service makes it easy to share their listing with potential buyers; exposure they wouldn’t typically get if selling on their own. In addition, during the comparative market analysis, the seller can see what similar properties, or comps, in the area are selling for and what features they offer. This is how the initial asking price is determined.
Sellers can also use this information strategically. By looking at what similar homes are selling for and what features they have, sellers can get a better idea of how their property compares and spot areas where they could improve. For instance, if comps show that homes with updated kitchens or bathrooms are fetching higher prices, a seller might decide to make those upgrades to make their home more appealing to buyers. Often a few small projects can result in less time on the market and a higher sales price.
How it benefits buyers
Through the help of an agent, a buyer can also benefit from the MLS. As they’re in the process of buying a home, a buyer will have more options to choose from that meet their criteria and the MLS will provide more detailed information about the listing such as size, features, style, neighborhood, and more. This makes sorting through the potential hits much easier for the agent, which in turn saves the buyer time.
* Most new listings in MLS feeds received by Redfin will post within 5 minutes.
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