Real estate agencies cope with the tasks more efficiently and faster than individuals who make independent attempts to sell or buy housing because they have a modern and powerful tool – the multiple listing software (MLS). In this article, we will discuss what MLS is and why real estate MLS software development is important for the industry.
MLS is a professional electronic database intended only for realtors and includes objects for sale. The information in this database is fundamentally different from the information collected in real estate resources, free classifieds sites, etc. To begin with, let’s look at the difference between the information present in the MLS and information found in other sources.
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MLS: The Backbone of Modern Real Estate
The Multiple Listing Service, commonly known as MLS, is a database of property listings shared among real estate professionals. It serves as a centralized hub of information, allowing agents and brokers to access and share details about properties for sale or rent. However, MLS is more than just a collection of listings; it’s a sophisticated ecosystem that facilitates cooperation among real estate professionals and streamlines the entire property transaction process.
The Evolution of MLS
To truly appreciate the convenience of MLS, it’s important to understand its evolution. The concept of MLS dates back to the late 19th century when real estate brokers would gather regularly to share information about properties they were trying to sell. This primitive form of information sharing laid the groundwork for what would become a cornerstone of the real estate industry.
As technology advanced, so did the MLS. The transition from paper-based systems to digital platforms in the late 20th century marked a significant leap forward. Today’s MLS systems are highly sophisticated, offering real-time updates, advanced search capabilities, and integration with other real estate technologies.
Differences Between MLS and Advertising Sources
So, on electronic resources with free access, absolutely any ads can be present, including advertising apartments that do not exist or apartments at an unrealistically low price. Such ads are published by some real estate agencies to attract the attention of potential customers. In addition, an advertisement for the sale of the same apartment can be duplicated many times, which introduces a fair amount of confusion and forces a user in an independent search for an apartment to take many actions that do not bring the desired result.
Ads for the sale of real estate, which are present in free sources, are not checked by anyone in any way. An apartment may be offered that does not belong to the person trying to sell it or an apartment with unresolvable document problems. There may also be ads that are not aimed directly at selling an apartment; some owners periodically post ads to obtain objective information about the price of their apartment and to study demand. Thus, when studying ads on real estate sites, it is difficult to get an idea of the real state of affairs. The resources are too “littered” with ads with conditions that do not correspond to reality.
MLS is the exact opposite of free-access resources. In this system, there cannot be ads about non-existent apartments, ads with a low price, or other ads that can be misleading and cause numerous unproductive actions by the realtor. The only reason for including a property in MLS is the existence of an exclusive agreement for this property.
And the contract, in turn, is a real confirmation of the owner’s intention to sell his apartment. Immediately after the obligations under the exclusive contract are fulfilled, the apartment disappears from the list of objects offered for sale. In addition, the contract involves an analysis of the legal purity of the transaction by specialists of the real estate agency. Thus, the MLS includes only real apartments, working with which the agent will not be compromised, and the buyer will not subsequently face unpleasant surprises.
How the Multiple Listing Software Works
The MLS is not public, it can only be used by professional market participants – real estate agencies or private realtors:
- On the one hand, realtors enter the property into the system immediately after the conclusion of the contract with the client. The object becomes available to all real estate agencies that may potentially be interested in selling this object, which allows you to find a client as quickly as possible.
- On the other hand, professional sellers get access to verified and structured information, which eliminates the time spent on useless negotiations with property owners who are not going to sell their objects, as well as with unscrupulous sellers.
As a rule, SML is implemented at the city or regional level; there is no database that would include information on real estate throughout the country. At the same time, in the United States, where the real estate market is somewhat more civilized, such a system successfully operates nationally. System maintenance requires certain costs, so using MLS involves a paid basis. The amount each participant pays for using a single base may vary slightly depending on the region.
Interaction of MLS Participants
How is the interaction between realtors carried out if the contract is concluded with one agency and the other agency has a potential buyer? At the time of placing an object in the MLS, the real estate agency with which an exclusive contract for the sale of the object was concluded indicates the amount of commission that the partner agency will receive in a joint transaction. If the transaction has taken place, then each of the partners receives their part of the remuneration established within the limits of the agreement.
The fact that the sale of the apartment is carried out by an agency with which an exclusive contract has been concluded does not allow the partner to increase the sale price and thus receive additional profit. Participants in the system are deprived of the opportunity to take actions that are not entirely honest concerning colleagues; an exclusive agreement does not make it possible to poach a client or force him to lower the price.
The unified system forces realtors to be attentive to the obligations assumed, as well as to the reliability of the published information. In the event that a realtor violates the rules established for participants in the system, the agent may lose access to work with MLS, which will have a very negative impact on the productivity of his future work and, therefore, on the ability to continue his career.
MLS and Client Service
The convenience of MLS doesn’t just benefit real estate professionals; it also significantly enhances the experience for clients. Whether buying or selling a property, clients reap the rewards of the efficiency and thoroughness that MLS brings to the process.
- Empowering Buyers
The wealth of information available through MLS means buyers can be more informed and involved in their property search. Many brokerages now offer client portals that draw data directly from the MLS, allowing buyers to search properties, save favorites, and receive updates on new listings that match their criteria.
This level of access empowers buyers to take a more active role in their property search. They can explore options at their own pace, outside of traditional business hours, and come to their agent with specific questions or requests for viewings.
- Supporting Sellers
Sellers also benefit greatly from the broad exposure that MLS provides. A property listed on the MLS becomes visible to all member agents and their clients. This broad exposure increases the likelihood of finding the right buyer quickly.
Additionally, the market analysis capabilities of MLS allow agents to provide sellers with detailed, data-driven advice on pricing and marketing strategies. This can lead to more realistic price expectations and potentially faster sales.
- Streamlined Communication
MLS systems often include features that facilitate communication between agents and their clients. Automated alerts can notify clients of new listings, price changes, or other updates relevant to their search. This keeps clients informed without requiring constant manual updates from their agent.
For agents, this automation of routine communications frees up time to focus on more value-added activities, such as negotiating deals or providing in-depth market analysis.
Final Thoughts
Buyers can browse countless real estate and brokerage websites in the digital age. Despite this increased impact, the need for MLS remains. If the buyer works with a broker that belongs to MLS, he can quickly and conveniently search for all properties for sale. If you are thinking about MLS development, contact Inoxoft’s managers. This company has experience in real estate solutions development, so you can be sure about getting a reliable product that will improve your business in the future.