What is the MLS?
Most consumers that have been involved in a real estate transaction have heard real estate agents use the term “MLS”. The Multiple Listing Service also known as “The MLS” is an internal organization and database that is available for use exclusively by Real Estate Agents and Brokers. The MLS is a powerful database that archives all previously listed transactions and assists real estate professionals determine the listing price (for sale and rent) by reviewing historical data of previously sold/leased homes.
Buyer and Tenant agents rely on the MLS to share active listings to their buyer/tenant clients. Although various websites provide estimates on suggested property sales/rental prices, the MLS provides the most up-to-date and accurate information. Internal information is also provided in each listing that is both public and private such as property details and agent commission.
It is important to note that only members of the National Association of Realtors (NAR) have access to the MLS. Your local NAR chapter, such as The Northern Virginia Association of Realtors (NVAR) provides Professional Standards Enforcement and a Code of Ethics designed to make their members and their clients successful!
Not all real estate brokerages or Property Management Companies are members of a NAR chapter. If a Real Estate Brokerage is a member of NVAR (or their corresponding chapter) and the MLS, then the brokerage is required to list the property on the MLS unless the owner ops out with proper disclosure. This change in policy came into effect in November 2020, NAR issued a nationwide policy change “Clear Cooperation policy”. The policy requires brokers who are participants in the MLS to submit their listing to the MLS within one business day of marketing the property to the public
Why the MLS Matters when selling or renting your home
Prior to NAR’s “Clear Cooperation Policy” change, members of NVAR were not required to post their listings on the MLS, essentially creating what is known in real estate jargon as a pocket listing, a pocket listing is a listing that is marketed and sold outside of the MLS, where usually the listing agent keeps both the buyer and sellers commission. These pocket listings apply to rental transactions as well. This can cause a conflict of interest and the fiduciary responsibility of the agent may be compromised. By limiting listings only to public-facing marketing sites such as Zillow, Trulia, HotPads, etc., the marketing efforts and exposure for the listing are severely limited and are ultimately not in the favor of the Landlord/Seller whose goal is to locate a qualified tenant or buyer in the least amount of days. It is in the best interest of the home owner to have their listing be advertised on one of the largest real estate databases, the MLS.
Selling or renting a home can be an expensive and daunting task for most. Home Owners or Landlords often advertise their rental or for-sale properties themselves to avoid paying hefty commissions that can average from 1 to 2 months rent for rentals and 4-6% of the sales price for sales (commissions vary). By partnering with a Real Estate Brokerage that offers Limited Real Estate Services such as Home Hub, landlords and sellers are able to save substantially on listing fees without compromising their marketing exposure. Marketing on the MLS will ultimately help landlords and sellers reduce their days-on-market (DOM) and find a qualified tenant/buyer!
Additional benefits of partnering with Home Hub’s Limited Real Estate Services:
- Reducing Days On Market by providing greater exposure. Once listed on the MLS, your listing would also be syndicated to public-facing marketing sites such as Zillow, Trulia, and HotPads!
- Since only licensed Realtors have access to the MLS, your property would be shown to prospective tenants/buyers by members of NVAR.
- You would still be able to show the property yourself to prospective tenants that reach out directly to you.
- Help tenants/buyers who have hired an NVAR Real Estate professional find their next home