MLS - Frequently Asked Questions
- What is MLS ?
- What are the advantages of listing my property for sale in MLS ?
- Why not just advertise my home "For Sale By Owner" in the news paper or in ISoldMyHouse.com and forget the MLS listing ?
- What is the Buyer's Agent Commission and how much should I offer ?
- Why do Agents use MLS instead of other databases that list homes for sale ?
What is MLS?
In most areas, the MLS (Multiple Listing Service) is a corporation. To input listings in MLS, you must be a licensed Real Estate Broker or Agent. MLS Members cooperate by showing and selling the homes listed by other members, for which they receive a commission for bringing the buyer to the seller. The commission amount offered to the agent who brings the buyer is listed (required by the MLS) along with the detailed information about the home and picture(s). Only MLS Members can view the detailed MLS listings. In recent years, most MLS systems have distributed some listing information to websites like Realtor.com and allowed MLS members to show a limited set of listing information on their own websites.
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What are the advantages of listing my property for sale in MLS?
The MLS is the primary tool agents use to find a property when they have a buyer. Over 80% of buyers use agents to help them find properties. Most agents, use MLS as one of the most important tools to find a home for their buyers every day. (For many agents, MLS is the only tool they use to find homes for their buyers.) Many agents also send nightly emails to their buyer's with listing that match their criteria. When you list your property in MLS, agents get to know that your property is for sale, without having to look at a news paper advertisement or without having to look at the "For Sale" sign posted in front of your house. Also it reaches potential buyers who are looking to buy a property similar to yours directly by nightly email, if their agent offers such a service.
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Why not just advertise my home "For Sale By Owner" in the news paper or in ISoldMyHouse.com and forget the MLS listing ?
Most people responding to newspaper ads are not yet really serious about buying a home. They are still in the dreaming or just kicking the tires stage of home buying. Once a buyer gets serious, over 80% of the time he or she will hire a Realtor®, and that Realtor® will show the buyer homes that are listed on the MLS.
ISoldMyHouse.com only allows buyers to view the property. It does not allow agents to show your property to their buyers for a commission. Even if you are willing to offer a commission to an agent who procures a buyer for your property the agents won't know about it. Hence they have no incentive to show your property to their buyers. Considering more than 80% of buyers still use a Realtor® to help them find their property this eliminates majority of potential buyers from seeing your property.
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What is the Buyer's Agent commission and how much should I offer ?
The Buyer's Agent commission is the amount you are willing to pay a real estate agent that brings you a qualified buyer. This amount is determined by you at the time of listing and is paid by you to the Buyer's Agent at closing. This amount should be competitive with other listings in your area to enhance the marketability of your home. These commissions typically range from 2.0% - 3.0% of the selling price depending on the area.
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Why do Agents use MLS instead of other databases that lists homes for sale ?
Each home listed on MLS must include in the listing the compensation amount the seller is offering to any Agent who procures a buyer for the property. By using MLS, Agents therefore are able to know upfront how much the sellers are willing to compensate them, if they sold the property.
