MLS software use

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 that is 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 that can be found in other sources.

Differences between MLS and advertising sources

So, on electronic resources with free access, absolutely any ads can be present, including advertising of 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 who is 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 actually belong to the person who is trying to sell it or an apartment that has unresolvable document problems. There may also be ads that are not aimed directly at selling an apartment, some owners periodically post ads in order to obtain objective information about the price of their own 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, as well as other ads that can be misleading and cause numerous, unproductive actions of 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: 

  1. On the one hand, immediately after the conclusion of the contract with the client, realtors enter the property into the system. 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. 
  2. 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 is successfully operating on a national scale. System maintenance requires certain costs, so the use of MLS involves a paid basis. The amount that 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 was 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 with respect to 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.

Final thoughts

In the digital age, buyers can browse countless real estate and brokerage websites. Despite this increased impact, the need for MLS remains. If the buyer works with a broker that belongs to MLS, he has the ability to 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. 

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