The Multiple Listing Service (MLS) is a shared database of real estate listings used by real estate agents to both advertise and search for homes. The purpose of the Multiple Listing Service is to encourage cooperation between listing agents who represent sellers and buyer’s agents who represent prospective purchasers.
Listing agents submit their properties into the MLS to generate exposure to buyer’s agents. Buyer brokers use the Multiple Listing Service to search for and send suitable listings to clients. Buyer agents feel comfortable showing MLS listings to prospective purchasers because listings in the MLS offer buyer brokers a congratulate assurance of getting paid for procuring a buyer.
Listing a home on the MLS is essential because the vast majority of home buyers are represented. The specific buyer agent commission varies by listing depending on what’s negotiated with the listing agent and included in the listing agreement. Each listing in the MLS displays the buyer agent commission percentage being offered.
Sellers customarily pay all real estate commissions, including the buyer agent commission.
The buyer agent commission is often referred to as the co-broke. If you overhear an agent asking “What is the co-broke?”, they’re inquiring as to the buyer agent commission percentage.
MLS databases encourage cooperation (i.e. co-broking) between agents by requiring participants to adhere to a set of rules. In NYC for example, members of the REBNY RLS broker database agree to abide by the REBNY RLS Universal Co-Brokerage Agreement (UCBA).
Among other provisions, the UCBA requires listing agents to share no less than 50% of the total commission with a cooperating broker (i.e. the buyer’s agent) in the case the buyer has an agent. If a seller is paying a total of 6% commission, this means that the listing agent may offer no less than 3% in the REBNY RLS broker database.
There is no single national Multiple Listing Service. Instead, each region has its own MLS. For example, Miami and adjacent areas in South Florida use the South East Florida MLS. Long Island in New York uses the OneKey MLS.
The public does not have direct access to the Multiple Listing Service. However, some MLS databases have a consumer facing website which allows non-agents to pursue listings in the MLS.
For example, the OneKey MLS operates a public listing search portal which can be viewed here. The listings on this search portal are derived from listing data in the OneKey MLS.
Moreover, each Multiple Listing Service is typically only accessible by member agents of that specific MLS. However, some MLS databases do have listing-sharing agreements with other MLS systems.
Listings which are uploaded into the MLS typically syndicate to a standard set of consumer facing real estate websites such as Zillow. This means that all listings agents who are a member of the MLS advertise their homes on the same set of third party websites.
The specific syndication sites vary by MLS. Moreover, agents who are members of the MLS often use MLS data to power real estate search portals on their own websites (see one such example here).
FAQ on the Multiple Listing Service:
What information is on the MLS?
Who owns the Multiple Listing Service?
How to list on the Multiple Listing Service
What is a Flat Fee MLS listing?
Does a realtor have to be a member of the MLS?
How Many MLS databases exist in the United States?
Can a region have more than one Multiple Listing Service?
Does NYC have a Multiple Listing Service?
What information is on the MLS?
The MLS contains standardized information about each listing, such as the asking price, status (i.e. active or pending), listing agent information, listing description, photos, floor plan, bed and bath count, square footage, age, lot size and amenities.
In addition to this basic information, the MLS may include more detailed information such as a 3D virtual tour, school district and neighborhood information. The MLS also includes an agent notes field as well as instructions for requesting a showing.
Who owns the Multiple Listing Service?
Each regional Multiple Listing Service is owned by one or more Realtor associations. Each Realtor association consists of agents and brokers who belong to the National Association of Realtors (NAR).
Some MLS databases are jointly operated by multiple Realtor associations. For example, the OneKey MLS is owned by the Long Island Board of Realtors as well as the Hudson Gateway Association of Realtors. Members of both Realtor associations have access to the OneKey MLS.
A Full Service Listing for 1%
Sell your home with a traditional full service listing for just one percent commission.
How to list on the Multiple Listing Service
To list a property on the Multiple Listing Service (MLS), you will need to work with a real estate agent or broker who is a member of the Realtor association which operates the specific MLS in your area.
Non-member agents do not have the ability to submit listings into the MLS, nor do homeowners. Since MLS databases vary by region, this generally means you need to work with an agent who is local to your area.
Listing on the MLS does not mean you have to pay 6% commission. There are less expensive ways to list your home on the MLS. Reduced commission options for selling include a Flat Fee MLS Listing or 1% Full Service.
A Flat Fee MLS Listing is the most cost effective option for listing your home on the Multiple Listing Service.
Hybrid options also exist in the form of 1% Full Service. This type of service offers the thoroughness and convenience of a traditional, full-service listing for a more reasonable commission rate.
What is a Flat Fee MLS listing?
A Flat Fee MLS listing is a reduced commission listing service in which the seller pays a flat fee to have their property listed on the MLS (Multiple Listing Service). The flat fee listing agent forwards all leads to the seller, and the seller handles all aspects of the sale from responding to questions, arranging showings and hosting open houses.
A Flat Fee MLS listing allows a seller to have their property listed on the MLS without having to pay a percentage commission to a listing agent. Most Flat Fee MLS listing companies charge an upfront, non-refundable flat fee.
However, some companies such as Hauseit don’t charge any upfront fee and only collect payment if and when you close.
Because it offers comprehensive exposure to buyer’s agents, a Flat Fee MLS listing is a much more effective alternative to selling FSBO. For Sale By Owner listings have a high failure rate because most buyers are represented, and buyer’s agents typically only feel comfortable showing listings which are in the MLS since they offer a contractual assurance of getting paid.
If you’re considering a Flat Fee MLS listing, make sure that the company you work with will list your home on the correct MLS. Some national flat fee listing companies may promise to list your home on “your local MLS” without specifying where your listing will be posted. Oftentimes they end up listing your home on an irrelevant MLS. For example, if you’re selling in NYC it won’t do you much good to list in the New York State MLS since the REBNY RLS is the dominant broker database in New York City.
Does a realtor have to be a member of the MLS?
A real estate agent or broker must be a member of the Realtor association which operates the local MLS in order to submit a listing into the database.
While a real estate agent isn’t required to join a local Realtor association in order to do business, it’s very difficult to do business without being a member of the MLS. This is because listing agents usually aren’t required to split commissions with buyer’s agents who aren’t members of the MLS.
Each region has its own Multiple Listing Service run by a local broker association which is affiliated with the National Association of Realtors.
How Many MLS databases exist in the United States?
There are 597 MLS databases in the United States as of 2020 according to the Real Estate Standards Organization.
The number of MLS databases in the US continues to shrink each year as the result of regional consolidation.
For example, the MLS Long Island and the Hudson Gateway MLS in New York were consolidated into OneKey MLS in 2020.
Can a region have more than one Multiple Listing Service?
Yes, it is possible for a region to have more than one Multiple Listing Service (MLS). This is the case in New York City.
There are no less than four separate broker databases in NYC: REBNY RLS, the OneKey MLS, the Brooklyn MLS and the Staten Island MLS.
While the REBNY RLS has the largest overall footprint in NYC, other databases outperform in certain areas of the city. For example, the Brooklyn MLS has a strong presence in South Brooklyn but the REBNY RLS dominates in Brooklyn neighborhoods closer to Manhattan.
Similarly, the OneKey MLS is quite strong in eastern Queens whereas the REBNY RLS is dominant in neighborhoods closer to Manhattan such as Long Island City.
A Full Service Listing for 1%
Sell your home with a traditional full service listing for just one percent commission.
Does NYC have a Multiple Listing Service?
NYC does not have a single Multiple Listing Service as is the case with other regions of the country. Instead, there are several competing MLS databases and broker databases which operate in NYC.
The largest broker database in NYC is the REBNY RLS operated by the Real Estate Board of New York (REBNY). Interestingly, the Real Estate Board of New York is not considered an official MLS since the organization which operates it (the Real Estate Board of New York) is not affiliated with the National Association of Realtors.
While the REBNY RLS is not an official MLS, it effectively performs the same function as any other Multiple Listing Service throughout the country.
Additional MLS databases in NYC include the OneKey MLS, the Brooklyn MLS, the Staten Island MLS.
The OneKey MLS is the largest MLS in the Hudson Valley and Long Island, and it has a fair amount of listings in Eastern Queens. The Brooklyn MLS primarily operates in South Brooklyn. However, the REBNY RLS is the dominant broker database throughout NYC including Manhattan, Brookly and Queens.
