What is the purpose of an MLS? There has been a great deal of discussion recently, in many different circles, as to the importance and purpose of an MLS. We all know brokers, agents and consumers have many “advertising” options available to them for their properties. So, the question is being asked: “What makes the MLS different?”

To answer this question, let’s review some history. According to the National Association of REALTORS®, multiple listing, in one form or another, dates back to the nineteenth century. The early Boards of REALTORS® were known as “Real Estate Exchanges”. On certain days, the members of the Board gathered at the Board office and exchanged information about their listings. These brokers actually conducted an auction as they came prepared to purchase property desired by their principals, but listed by another broker. Shortly after the end of the nineteenth century, the term “multiple listing” was in use. It is mentioned as an activity of the Board as early as 1907.

By the 1920s, multiple listing was widely accepted. The expansion of this function continued and spread throughout the country resulting in the service that is essentially provided today. So what is the actual definition of “Multiple Listing Service”? According to NAR it is:

• A facility for the orderly correlation and dissemination of listing information among Participants so that they may better serve their clients and customers and the public;
• A means by which authorized Participants make blanket unilateral offers of compensation to other Participants (acting as subagents, buyer agents, or in other agency or non-agency capacities defined by law);
• A means by which information is accumulated and disseminated to enable authorized Participants to prepare appraisals and other valuations of real property;
• A means by which Participants engaging in real estate appraisal contribute to common databases.

However, the most important features that separate the MLS from mainstream advertising options have to do with:

1) the accuracy and timeliness of the property database that is created and maintained by REALTORS® for REALTORS® and

2) the inclusion of a blanket unilateral offer of compensation to REALTORS® for every listing in the MLS. While other advertising options may do a good job of providing exposure, their business models do not include protecting your compensation. We take very seriously this important responsibility.

As always, we want to do a better job of providing you with services. Please let us know if you have suggestions for us in this regard! You can reach me by phone at 248-699-9120 or by email.

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