What is the MLS?
A Multiple Listing Service, or MLS, is a private marketing database set up by a group of cooperating real estate agents. It's purpose is to provide accurate and structured data about properties for sale. It also is a mechanism for listing agents to offer compensation to buyer agents who bring a buyer for their listed property. Each MLS has its own rules and procedures.
While the MLS may look like one large national database, it's actually a suite of approximately 800 regional databases. Each regional MLS has its own listings, and agents pay dues to access and post homes on each one. By using rigid data criteria and providing rules for the offer of compensation to other agents, the MLS has been the primary vehicle for the vast majority of real estate transactions over the years. This may explain why only 8% of homes sold every year are For Sale By Owner (FSBO), and the vast majority go through the MLS and FSBO homes sell for less money - on average $39,000 less.
Now that you understand why the MLS was created. You can easily see how important the MLS is for agents to share their listings with other local agents. The power of the MLS creates a huge network of local agents working together to buy and sell homes. On average about 80% of homes listed on the MLS are sold because another agent brings the buyer so they would split the 6% commission being paid by the seller in a traditional listing.
This is why flatfeemlsgroup.com was created to help for sale by owner homeowners list on the MLS for a flat-fee eliminating the listing agents 3% commission.