What is the Multiple Listing Service? Real Estate Brokers pay to be members of the MLS, and to have access to the data and information. An individual cannot become a member of the MLS without having an active license to conduct Real Estate activity (Real Estate Agent, Real Estate Broker). The MLS is a private offer of cooperation and compensation by Listing Brokers to other Real Estate Brokers.
The MLS is considered on the largest bartering systems in the United States. Trading information for compensation. The real estate market is competitive, and the MLS system facilitates cooperation between Real Estate Brokers. One Broker gets hired by a Seller to market and sell a home, and that Broker contractually invites ALL other MLS Real Estate Brokers to sell that home, and offers a specific compensation to the Real Estate Broker that closes a sale.
This enables Buyers and Sellers to work with the Real Estate Broker of their choosing. It is really quite a useful system.
Some Real Estate Brokers offer a flat fee MLS service, which may entitle a For Sale By Owner to have their home listed in the MLS system, making it available to Real Estate Brokers that may be working with a Buyer. In a flat fee service agreement, a Real Estate Broker may limit their involvement in your transaction to that of a data entry clerk. Meaning, they may not be representing that Seller, or the Seller’s interest. Each flat fee Real Estate Broker has a specific list of duties that they will be obligated to for a specific fee, for a For Sale By Owner to consider.
Having your For Sale By Owner in the MLS is often smart because you then get the added advantage of having your home available for Buyer’s Agents to show and sell. However, you will have to offer compensation to the Buyer’s Agents for closing a sale on your home.