Multiple Listing Service
MLS stands for Multiple Listing Service.
Basically, the MLS is a big property warehouse - sort of like a "home depot." When property is available for sale, it goes in the warehouse. When it is sold, it gets taken out of the warehouse.
Since real estate cannot actually be stored in a warehouse, the MLS only contains information. So the MLS is actually a database - an extremely convenient way to know what is available for sale at a given moment. That is why real estate agents developed the MLS. Quick knowledge of home inventory made agents more productive.
Why the MLS works for home sellers:
The whole MLS idea is a boon to sellers because of "supply and demand."
How can you, as a seller, get access to the largest number of buyers? Placing an ad in a newspaper? Or putting your home information into a computer accessible by every MLS member who will show your property to their qualified buyers in your price range?
Being placed in the MLS expands a home seller's sales force, exposes the property to a larger pool of prospective home buyers, and creates more demand for the property. The higher the demand, the more pricing power enjoyed by the homeowner - and the quicker a home will sell.
Why the MLS works for home buyers:
It is extremely convenient, does not cost a penny to buyers, plus ... you get a qualified and experienced guide to help you through the complicated process of becoming a homeowner.
You've heard of supply and demand? The more potential buyers at your supply, the higher a price you can demand.
The absolute number one tip I can give you to help you get the most money possible for your home is this: make sure you get full Multiple Listing Service (MLS) coverage.
Don't look at any offers until you are sure your home is on the MLS computer.
I will say this again...
Don't look at any offers until you are sure your home is on the MLS computer. An army of Realtors at your disposal can't be beat.
- Dump any Realtor that tries to tell you to put your house on exclusive (only his/her company) or wants you to negotiate offers before it gets on MLS.
- Dump any Realtor that wants to list your house on a Friday and have a public open house the following Sunday. There is not enough time to get your home on the system. I do not care how good a Realtors marketing plan is, it is worthless compared to the value of having your home on the MLS system. Think of it this way. Realtor = home on MLS = most Realtors = most buyers = most money.
There is a saying in real estate. The first offer is usually the best one. This is only true, if everyone knows it's for sale.
Real estate surveys in my area showed the owner lost an average of $2000. when their house was sold by the same office or Realtor that listed their home. The reason...the offer was written before any one else knew it was for sale.
Ask any realtor you are contemplating dealing with, what the order of their marketing plan is. If submitting to the Multiple Listing Service is not the first thing they are going to do, look for another realtor.
If you took away every selling tool I had, and said I could only have one of them back, I would choose the MLS service. This is not a commercial for MLS. It is just the best weapon Realtors and the public have for getting maximum exposure on property.
MLS is a strong selling tool,...use it... It will make a difference on your bottom line.