How do most people find out about homes for sale? Look no further than the ubiquitous MLS

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Published Date 1/21/2022

You may not be able to wrap your head around this, but there was a time before computers when listings for homes were printed on sheets of paper and placed in huge books. Nope. Nothing to “click” on to find a 3 bedroom, 2 bath home on 1/4 acre within your favorite school district. Agents had to flip through albums of listings, call other agents and make sure the homes they wanted to show had not suddenly sold, and put together an entire physical booklet (OMG) before taking their clients on a house-hunting tour.

Even back then, however, there was an MLS.

Realtor’s Julia Sweeney talks about what the Multiple Listing Service really is, whether you’re a first time homebuyer or a seasoned veteran at buying homes. The MLS plays a huge role in the buying and selling process, but unlike the scenario we just described, today changes can be made to each listing at lightning speed. There are a few essentials to learn in order to further your familiarity with the MLS, the first of which is what it is: a database of homes for sale that is produced and maintained by real estate professionals (listings) to help their clients buy or sell property. MLS listings typically include important property information, such as exterior and interior details, asking price, taxes, and other costs, and again, unlike yesteryear, buyers can see most of it all without the aid of an agent to translate it.

Created in the U.S. in the late 1800s, the MLS was run by members of the Board of Realtors in a given area. They would come together on certain days and share information about what properties were for sale, exchange information about properties, and carry out the purchase of properties on behalf of buyers they represented.

Not everything about a house for sale is open to the public, however. Kept private would be anything that could expose the seller or the property to certain risks, such as contact information about the seller for privacy reasons and details about when the home is vacant for showings (which helps to prevent break-ins). To access those details, buyers need to work with a licensed real estate agent.

Sweeney explains, “MLS systems range in size, sometimes covering the local municipality— such as the Chicago MLS Midwest Real Estate Data (MRED). In rural areas, like Portland, ME, one regional MLS can cover several counties. Potential buyers can also access MLS information via websites like Redfin.”

In most cases, when a homeowner is ready to list a home for sale, they get in touch with a broker or agent and grant them access to create a listing, says Sweeney. “The agent will gather the necessary details to complete the listing and will likely arrange for photography to be captured – all with the goal of making the home and listing as attractive as possible for buyers. It’s important to note that home sellers can’t post their home directly to the MLS, because posting access is reserved for licensed agents and brokers who pay for membership.”

So voila! The listing is now live and can be shared with potential buyers, who are commonly alerted to new listings that might interest them by their agent — usually more than one at a time. “The buyers then indicate which properties they want to view in person and their real estate agent can then schedule a showing,” says Sweeney. “And from there, if the buyer likes the home, they can enter the negotiation process.” Once an offer is accepted, the listing agent begins changing the status of the listing to “pending” and eventually to “sold” when escrow closes and the property has changed hands. At that point, the listing is listed as sold and agents looking for a similar home for their clients will have a new basis from which to compare values in the neighborhood.

A typical MLS listing contains detailed information that also helps a buyer get a handle on the home’s carrying costs and compare its potential value to others that are listed or recently sold that might compete in value with — in other words, information that aids in real estate investing. Sweeney urges buyers to pay attention to photographs and videos of the property, the property’s dimensions and square footage, the bedroom and bath count, detailed descriptions of the property room by room, including the flooring, exterior features, such as type of siding and roofing, the asking price, taxes and any applicable homeowner association dues. Note the days it has sat on the market, its age, look for the original listing price (it may have changed several times), plus all the legal details about the property such as county and township, plus subdivision information if applicable. School district information is also included, along with utility information. Disclosures by the sellers are of particular importance — what the sales price includes and doesn’t include, any tax advantages the owner received (solar?), but sometimes this information is left out.

To look for homes on the MLS, simply go to listing sites like Realtor.com, Redfin, Zillow, etc, enter the parameters you’re looking for (price, bedroom/baths, pool/no pool, etc.) and have at it. Even easier is to ask your agent to forward listings to you on a regular basis that might fit your needs so you don’t have to go online every day.

Be aware, however, that not all homes available for sale are listed on an MLS. The three instances where a home may be for sale but is unlisted include a home for sale by owner (FSBO), a pocket listing (a home for sale that can be shown only by specific agents to a select group of buyers), and a number of new construction homes. In some cases, builders opt out of working with a real estate agent to sell their homes by placing a licensed agent (who sells their homes exclusively) out of a trailer or a model home. You’ll see this happen more often when the market is hot. If a new home development interests you, however, be sure to make your very first visit there WITH your agent and ask if there is a way for you to be represented by him or her (the builder may pay a smaller “procurement” fee to agents).

If you are thinking of selling, there is no better place to get the most eyes on your listing than the MLS, which can be accessed by buyers all over the U.S., let alone the world. It’s also a way for sellers to examine the property details of similar homes that are selling at the higher end of the spectrum as well as for ideas for home improvements. In other words, the MLS is simply where it’s at.

Redfin, TBWS

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