MLS System- Is Best for Consumers
By Jim Palmer Jr.

For years the Multiple Listing System that is used and promoted by Realtors® has been under fire from critics who see that system as antiquated or as a monopoly of data.  Most of those critics are competitors for the data.  The MLS system has continually withstood the constant badgering of such fault-finders, including a recent anti-trust lawsuit from the U.S. Department of Justice.

This lawsuit was recently settled when the National Association of Realtors agreed to make certain changes to its rules that would provide even greater transparency to consumers about how buyer’s brokers are paid.  The NAR disagrees with the DOJ’s characterization of its rules and admits no wrongdoing in this settlement, but still agreed to make changes to its rules. The short version of the rules change is that buyer brokers can never represent that their services are free to clients, even though sellers have agreed to pay them, and buyers brokers also have to provide consumers with ALL properties that fit their criteria even if the agent’s commission will be smaller.

What makes the MLS system option best for consumers is that it continues to be the largest database of available homes, using the most up-to-date home status information while maximizing visibility of homes for sale.  This data base continues to be the most verified, trusted, detailed and accurate property information available.  The unique and powerful cooperation agreement between brokerages, who are all competitors, still facilitates the best collaboration possible between buyers and sellers in a real estate transaction.  The MLS system gives equal opportunity for all home buyers and sellers, leveling the playing field between large and small brokerages and making it easy to find the agent selling the home.

A world without the MLS would mean no centralized source of available homes, leading to outdated home status information and fewer homes for buyers to choose from on real estate websites.  Information would be unverified, inaccurate and unreliable like it is on some popular real estate websites who try to compete with the MLS system.  Sellers would have to pay to list on websites and property owners without access to brokerages would have fewer options.
 The result of destroying the MLS like some Realtor®-hating-advocates push for would have the opposite effect as what they think.  Markets would become broker-controlled without the oversight and watchful eyes of the competition.  The MLS system has evolved to provide the best possible outcome for consumers.