When many people think of the “MLS” they might think of Major League Soccer, but in the context of real estate it stands for Multiple Listing Service. This is a database only accessible to cooperating real estate brokers, providing them with data about properties that are listed for sale, have a pending contract or have sold. This data is then fed to other sites: When you go online to browse properties whether on a brokerage site like Red Oak Realty or a portal like Zillow, the MLS is where nearly all of the information originates.

 

Through this service, agents, brokerages and their clients are able to share valuable, “real time” information about the market as well as historical sale prices, tax and ownership information. That means that agents help their buyers receive notifications about new listings and their sellers have access to comparative properties (“comps”) to arrive at a list price for their property.

 

Our local board, the Bridge Association of Realtors, does a heroic job of monitoring the MLS and initiating corrections to the data when needed. The Board also provides ongoing training to its members on everything from fair housing to the optimization of tech tools. As a condition of membership, brokers and their agents are required to pass continuing education courses, building their understanding and adherence to the Code of Ethics.

 

Some sellers choose to keep their properties off the market (i.e. off the MLS) in the form of “pocket listings.” While this strategy can work in some situations, it generally benefits the agent/brokerage by keeping the transaction “in-house”. It can also hinder the sale price by limiting the number of potential buyers. In fact, BrightMLS, the largest MLS in the country, recently found that off-market homes sell for 17% less than on-market homes.

 

As a result of this activity, the National Association of Realtors (NAR) instated a Clear Cooperation Policy which requires that all listings must be entered into the MLS prior to any advertising to the general public.

 

When the Clear Cooperation Policy was introduced, many MLSs added a new listing status: “ Coming Soon.” These listings are not publicly available or “on the market” per se, but they will be soon. These listings are only visible to MLS members and do include a list price. This can create buzz in the Realtor community as the listing info may be shared with buyers while not appearing on public-facing sites.

 

The MLS has a “Days on the Market” (DOM) counter, which does not start until a listing status is marked “New/Active.” (It stops when the property has a ratified contract.) While still gaining market exposure, a Coming Soon listing avoids the appearance that it has been on the market long enough to be perceived as “stale.”

 

If you are a buyer, it gives you a clear advantage when you have an agent with this increased access. Your agent can set you up to be notified as Coming Soon listings appear.

 

Shortly after a listing becomes active, it will sync to a vast number of real estate websites like Red Oak Realty. This helps level the playing field; regardless of which site a potential buyer may use, the information is available for all actively listed properties. The MLS also gives your agent the ability to access listing data furnished by members of other nearby Realtor boards.

 

When listing your property for sale, your agent’s most important objective is to get the highest possible price and terms of sale most favorable to you. The most effective way to do this is by marketing the property to the largest possible number of qualified buyers. The MLS is a critical tool for accomplishing this.

 

If you have any questions about how the MLS helps sellers and buyers or would like a custom report relevant to you, contact us.