# Understanding MLS: Definition, Benefits, and Fees in Real Estate

![Multiple Listing Service (MLS): A database established by cooperating real estate brokers to provide data about properties for sale.](https://www.investopedia.com/thmb/Cnuc9m0Jkbj76J_Z1NgirsLupOc=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Multiple-listing-service-mls_final-39c2aadf3af1407fbea76049d60b7ded.png)

*— Investopedia / Michela Buttignol*

## What Is a Multiple Listing Service (MLS)?

A Multiple Listing Service (MLS) is a vital tool in real estate, offering a comprehensive database of property listings within a specific region. Created by [real estate](https://www.investopedia.com/terms/r/realestate.asp) agents, MLS allows agents and brokers to share detailed property information. This cooperation also benefits buyers and sellers by providing access to a wide range of listings and enabling efficient market transactions. An MLS can help agents see one another’s listings and connect buyers looking for properties on the market. A local MLS can also provide prospective homebuyers with detailed information on each property for sale, including features, square footage, and listing price.  

### Key Takeaways

*   A Multiple Listing Service (MLS) is a collaborative database used by real estate agents to share and access listings for properties for sale.  
    
*   Access to MLS listings is typically restricted to licensed real estate agents and brokers who pay membership fees.  
    
*   MLS systems provide detailed information on properties, such as square footage, features, and listing prices, enhancing transparency in the real estate market.  
    
*   The MLS helps homebuyers and sellers by consolidating information and facilitating the connection between buyers and sellers through their agents.  
    
*   While online real estate platforms like Zillow tap into MLS data, the MLS itself remains the most accurate source for property listings.

## Understanding the Functionality of Multiple Listing Services

Multiple listing services, or MLS for short, create a book or an electronic database with all of the houses for sale by affiliated brokers, who update it on a regular basis. Local real estate brokers often collaborate to create regional MLS databases. Therefore, hundreds of regional databases contain national listings found on real estate agent websites.

### Steps to Accessing Your Local Multiple Listing Service

1\. Partner with a licensed [real estate agent](https://www.investopedia.com/terms/r/realestateagent.asp) or broker to gain access to the MLS.  
2\. Understand the fees associated with accessing the MLS, usually borne by the agent or broker.  
3\. Once partnered, check if you can view listings through the agent’s website.  
4\. Utilize the detailed property information provided by the MLS for your buying or selling decision.

### Key Information Included in MLS Listings 

An MLS listing typically contains information about the selling price, structure, features, and location. When buying a home, check how many days a house is on the market as it shows demand. The type of sale, like a foreclosure or short sale, affects the listing price.

The table below shows details that an MLS listing might contain:

### The Evolution of Multiple Listing Services 

The MLS started in the 1800s to help agents work together, selling homes more effectively by sharing listings.

The MLS is essentially an agreement among real estate agents to list each other’s properties through a cooperative service. The first multiple listing services were circulated via catalogs, but almost all are online today. The concept of an MLS is generic, with no governing MLS body, and the phrase cannot be trademarked or branded.  

## The Need for Multiple Listing Services in Real Estate 

In the digital age, buyers can browse through countless real estate and brokerage websites. Despite this increased exposure, the need for an MLS persists. If a buyer works with a broker who belongs to an MLS, the broker can quickly and conveniently search all of the properties for sale by participating agents.

In most cases, the MLS listing also contains private contact information and details about showing times. Without this consolidating service, the broker would need to look through several websites for individual brokers to find available properties in the area.

> **Important**
>
> With an MLS, the listing and selling brokers benefit by consolidating and sharing information and commissions.

## Advantages of Using Multiple Listing Services 

Multiple listing services provide more exposure to the selling broker and more options to the broker representing the buyer. In return, both brokers receive a [commission on the sale](https://www.investopedia.com/financial-edge/0611/understanding-real-estate-commissions-who-pays.aspx). These services also level the playing field by allowing small and large brokerages to compete with one another.

For example, imagine if a small brokerage could only offer its buyers the properties the firm had listed. The firm’s buyers wouldn’t have access to all the listings from other brokers in the area. However, with an MLS, the information is consolidated rather than fragmented. An MLS allows competing brokers to work together toward a common goal of helping buyers find their desired properties and helping [sellers](https://www.investopedia.com/terms/s/seller.asp) sell their properties.

As a result of the cooperation of the agents and brokers to create the MLS databases, prospective homebuyers gain access to numerous listings. At the same time, sellers get connected to buyers through their broker or agent. Even online real estate websites containing national listings—such as Zillow, Redfin, and Trulia—pull data from the regional MLS databases.

## What Does MLS Stand for?

MLS stands for multiple listing service, which is used in the real estate industry to list all the properties for sale within a specific region.

## How Does a Multiple Listing Service (MLS) Work?

An MLS is a database created by real estate professionals that shows all the listings for sale in a region. Real estate agents pay membership dues to access the MLS, which contains listing details, including photos, square footage, and features of the properties.

## Do I Need a Real Estate License to Access a Multiple Listing Service?

To view listings on your local multiple listing service (MLS) as a buyer or seller, a real estate agent must grant you access. Only licensed real estate agents can post properties on the MLS. If you are unwilling to get a real estate license and don’t want to work with a full seller’s agent, several areas have flat-fee multiple listing services to list your property.  

## What Fees Are Associated with Multiple Listing Services?

There are hundreds of MLS organizations nationwide, and they all charge different fees directly to the real estate brokers who belong to their MLS network. The MLS does not charge fees directly to the public.

## What Is an MLS Number?

An MLS number is essentially a serial number for each property on the market, making it easier to differentiate and find properties quickly.

Conversely, the NMLS number, similar to an MLS and involved in real estate transactions, is permanently assigned to each individual who works as a [mortgage loan officer](https://www.investopedia.com/terms/m/mortgage_originator.asp). The Nationwide Multistate Licensing System issues NMLS numbers.

## The Bottom Line

The multiple listing service (MLS) simplifies the process for finding and selling properties by consolidating detailed, up-to-date information from real estate agents and brokers. While digital platforms like Zillow, Trulia, and Redfin aggregate listings, MLS remains indispensable for its comprehensive, accurate, and precisely maintained data. This service enhances real estate transactions by providing both buyers and sellers with a thorough view of the market, enabling informed decisions.  

> **Article Sources**
>
> 1.  National Association of Realtors. “[Multiple Listing Service (MLS): What Is It?](https://www.nar.realtor/nar-doj-settlement/multiple-listing-service-mls-what-is-it)”
>     
> 2.  Realtor.com. "[What Is the MLS? The Multiple Listing Service, Explained](https://www.realtor.com/advice/buy/what-is-the-mls-multiple-listing-service/)."
>     
> 3.  NMLS. "[NMLS Unique Identifier](https://nationwidelicensingsystem.org/about/Pages/NMLSID.aspx)."