Massachusetts Home Buyer Guide

Ever wondered how thousands of homes magically appear on real estate websites? The answer lies in a powerful tool called the Multiple Listing Service (MLS). But what exactly is the MLS, and how does it benefit everyone involved in a real estate transaction?

Established in the late 1800s, the MLS is a giant database of properties for sale, or commonly referred to as listings, accessible only by licensed real estate agents and brokers who pay to be members of their local multiple listing service(s). In most cases, when a seller lists their home with an agent, the agent enters all the details, including photos, square footage, features, and price, into the MLS, creating a single, centralized source of information for all participating agents. Buyer agents use the MLS and other resources to provide their home-buying clients with the latest home listings and information.

While the general public can see MLS listings through various online real estate platforms like Zillow and Realtor.com and on platforms used by their real estate agents, they cannot access the full details reserved for licensed professionals.

Each local MLS has its own rules and policies, but they all operate similarly. Using the MLS allows real estate professionals to expand the listings offered to their clients. A centralized location for all properties also protects consumers from real estate agents who might skip the MLS to avoid Fair Housing laws.

MLS benefits home buyers.

• More comprehensive Selection: Imagine having access to nearly all the available listings in your area, not just those advertised by a single agency. The MLS provides a comprehensive search tool, allowing home buyers and their buyer agents to quickly find properties that match their needs.

• Accurate Information: Since all MLS listings in a given local MLS follow a standardized format, buyers can easily compare properties based on key details like price, size, and features. Such standardization ensures prospective home buyers have a clear picture of what's on the market. An experienced buyer agent will leverage the MLS data to determine the fair market value for the property for which you want to submit an offer.

• Increased Efficiency: Gone are the days of visiting multiple real estate agencies to find the perfect home. With the MLS, home buyers can work with their buyer agents to search a vast inventory and identify promising properties.

Sellers also reap significant benefits.

• Maximum Exposure: The MLS broadcasts a seller's home listing to a vast network of agents, significantly increasing the chances of finding a qualified buyer. The MLS translates into a potentially faster sale and a wider pool of potential offers.

• Market Expertise: Agents leverage the MLS data to determine the right price to list a seller's property based on similar listings. This ensures you get a fair market value for your home.

• Streamlined Communication: When a buyer interested in your property is represented by another agent, the MLS facilitates communication and collaboration between both sides, ensuring a smoother transaction.

Real estate agents are key players and benefit from the MLS ecosystem.

• Collaboration: The MLS provides a platform for buyer agents and listing agents to connect home buyers and sellers. The MLS is also a vehicle for real estate agents to offer cooperating commissions; however, most multiple listing services will not allow the advertising of cooperating commissions beginning in the summer of 2024 because of the settlement of class-action lawsuits. Unfortunately, homebuyers likely will suffer from the practice rules agreed to in a settlement between the National Association of Realtors and plaintiffs' attorneys. The Boston area MLS, MLS Property Information Network, Inc., announced on June 20, 2024, that it would not join the NAR settlement agreement and continue to provide a field on listings for a cooperating commission.

• Efficiency: The MLS saves agents time and effort by providing a fair, centralized platform to find properties for their clients.

• Market Insights: The MLS offers valuable data on real estate market trends, allowing agents to give opinions on fair market value to their clients and home buyers to make informed decisions.

The MLS is a powerful tool that empowers and streamlines the home-buying and selling process for everyone involved. By providing a comprehensive database, accurate information, and a platform for collaboration, the MLS ensures a more efficient and successful real estate experience, putting the power of choice and information in your hands.