What is the MLS and do you need access to it to buy a home?
Interested in buying your first home? You’ll likely hear about the MLS system along the way. The MLS is the Multiple Listing Service – a home aggregator that REALTORS® use to share information about available properties in your region.
How does it work?
When agents list properties for sale, they add them to the MLS database, giving other REALTORS® in the area access to view the listing and share it with their clients. MLS listings include photos and detailed descriptions of the property. There are guidelines on what you can and can’t post that help standardize listings and keep the market fair.
How can I access the MLS?
Many online databases, like Zillow and realtor.com use the MLS to pull information on properties. While you can use a limited version of the MLS by reviewing these websites, your options expand exponentially when you work with a REALTOR®. They have access to historical data within the system, which can tell you a lot about changes to a property over time. For example, if you want to see when an addition was made, your REALTOR® may be able to find that information in the MLS – and it wouldn’t be available on an online site.
One interesting thing about Memphis’ local MLS is its unique tool called MAARdata. Appraisers throughout the MLS service area (West Tennessee) submit property information while reviewing different homes. This data is compiled and provided to REALTORS®, helping them make informed decisions when supporting clients. For example, appraiser data in combination with comparable home prices offered in the MLS can give buyers insight that helps them price their homes competitively. Buyers can use the same data to build informed offers. Our local MLS is the only one with a tool like this in the country!
Why should you work with a REALTOR®?
Without a professional agent who is a member of your local REALTOR® association, you can only access a small portion of available listings. REALTORS® and brokers pay membership dues to access the full MLS database, which gives you access to exclusive listings in your region. This is especially important for people who are selling a home. When you list a property on your own or with an agent who is not an MLS subscriber, your property will not appear among the consideration set for many other real estate professionals in the community. This doesn’t mean that your property won’t sell, or that REALTORS® won’t be able to see it, but it does mean that the pool of people who will know about your property is smaller.
There are also definite rules and guidelines that REALTORS® have to follow when using the MLS. All these rules are in place to protect homebuyers and sellers – meaning you can trust that the deal you’re working on is legitimate.
For example, a new regulation implemented in August of 2024 mandates REALTORS® create a buyer’s agreement with you that outlines your payment schedule and structure. It also disallowed agents from posting commission rates in the MLS to help keep deals competitive. When you work with an agent not bound by these rules, you could risk getting into a challenging situation.
While you can browse online databases to get an idea of what’s out there, working with a REALTOR® will expand your options and get you closer to finding the perfect home for you.
Are you looking to buy a home? United Housing has properties for sale in Memphis and has licensed REALTORS® on its team who can help you. Contact Will Freiman at wfreiman@uhinc.org to learn more and connect with an agent.