it's most basic sense and original purpose, the MLS is actually a
"help wanted" ad from the listing agent to other licensed
agents. The listing agent usually offers a portion of the commission paid by
the seller to the other members of the MLS (Realtors®)
if they find and represent a buyer for the listing. Listings without a
stated compensation for the buyer's agent are not allowed on the MLS.
This is what makes the MLS so
powerful. Once a home is listed, all regional Realtors®
have immediate access to the information. The commission offered
represents their total salary and operating expenses if
they're successful in completing a sale of the property, and is the motivating factor
that makes the MLS so effective in enlisting the help of thousands of
in selling your home.
will also take note of whether the
seller is represented by a Broker, or has just paid a fee for the input with
no further connection to the agent doing the MLS inputting (listed as
effect, when the seller is representing themselves, the buyer's agent
will have double the liability and often, double the work, than if the seller were
represented by a licensed broker. This may cause many agents to avoid
listings that are "entry only".
listings will appear all over the internet along with regular listings,
usuallly next to a broker or agent's name to call for more information
(whoever's site it is). When the buyer calls the agent on the page or
their personal agent, the agent will go to the MLS to look up the
details. Buyers who aren't professional brokers, attorneys or investors
are usually very hesitant to buy a home without professional assistance.
Most buyers wouldn't know how to write an offer or what to write
it on and wouldn't take the chance on the largest purchase of their
Getting a Real Estate license involves the study of contract law, among
other things. One misplaced checkmark could end up costing either party
thousands of dollars. Before digital storage, my closed sale files were
3-5 inches thick with paperwork.
How effective do you think an
"input only" MLS listing is to the seller under these circumstances?
Agents are people
who are licensed Real Estate Salespersons. They must work under a
Broker, who is ultimately responsible for the agents actions, though the
agent is an independent contractor, not an employee. The Broker is the
one authorized to collect the commission check earned by the agent and
then pays a portion to the agent while retaining a portion for
Brokers have the
right to work on their own and sometimes will work under another Broker
as a Broker Associate.
Realtors® are Agents
or Brokers who are members of the Realtor®
associations and are held to higher ethical standards.
I've been using the terms
interchangeably in this article.