The short answer is to this question is simple, but the explanation is well worth a quick read. Sellers, Brokers and Agents CANNOT list on MLS for Free. Here’s why:
1. The Why
MLS is a database of properties For Sale that is shared among licensed realtors. It acts as an SRO (Self-Regulated Organization) which means all data is audited for accuracy and certification. This is the main reason why MLS (Multiple Listing Service) is never free for anyone. It is guarded and watched in order to provide accuracy towards really important data.
2. Why is MLS Data so Guarded?
Simply because it affects one of the biggest assets a typical person owns. This is also why the mortgage industry is highly regulated. Remember the 2008 Real Estate Crisis?
3. The Main Reason Why Zillow Relies on MLS
Imagine looking through Zillow and not being able to rely on its data. This is why Zillow and other main real estate websites such as Trulia, Realtor.com, etc. cannot afford to NOT rely on the accuracy of MLS.
4. Brokers are Highly Fined on Errors
Brokers do not just pay a high cost in order to be able to utilize MLS but also pay fines upon any errors.
5. Free Doesn't Exist but Flat Fee Does
The best way to sell a discounted commission listing is through the Flat Fee MLS system. This is how a Broker can offer the cheapest way to be listed on MLS. You won’t pay 6%, but it also won’t be free. Do be careful with who you trust as your Flat Fee Real Estate Broker.
Conclusion
In conclusion, No one can list on MLS for free. Not sellers, not Brokers, not Agents, not even the Chairman of the Board of Realtors. However, Flat Fee MLS can get a seller the best workaround for this very expensive tool that is MLS. How do you think MLS became such an irreplaceable tool?
Will Puente, PhD, MBA, JD Candidate
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