Report
On-MLS Study: Measuring the Benefits of an Open and Transparent Housing Marketplace
pp 1-21
Aug 2023
Abstract
Information that is transparent and available to all consumers is essential for ensuring equitable access to homeownership. The multiple listing service (MLS) fills that role, as the source for accurate, open data that supports an efficient housing marketplace. The MLS is a cooperative enterprise where real estate agents and brokers share information about listings, connect buyers and sellers, and facilitate home sales transactions. The vast majority of homes sold are listed on the MLS. Bright MLS serves most of the Mid- Atlantic region, covering six states and the District of Columbia. In 2022, more than 85% of all homes sold in the region were listed and marketed on the MLS.
Benefits to Buyers
The MLS benefits both buyers and sellers. When homes are listed on the MLS, prospective buyers are able to view and tour nearly all homes available for sale. They do not need to contact individual brokers to see different homes—the MLS makes the homebuying process more convenient for buyers. The MLS also plays a key role in advancing fair housing by ensuring all prospective buyers can access full information about homes available for sale, as opposed to other systems that limit information about listings to certain networks of buyers.
Benefits to Sellers
There are also significant benefits for sellers who use an agent to list their home on the MLS. The MLS makes it possible for sellers to have the greatest number of homebuyers see, tour, and potentially make an offer on their home. Brokers and agents enter accurate, detailed information about homes listed for sale, which helps market a seller’s property. The MLS provides a subset of its rich data to consumer real estate sites such as Zillow, Realtor.com, and brokerage websites, which receive millions of views each month. By listing their home on the MLS, sellers can receive the most competitive offer because their home is exposed to the greatest possible number of prospective buyers.
Bright MLS collaborated with Drexel University to analyze the role the MLS plays in the home sale transaction, and specifically to measure the seller benefits associated with listing and marketing a home on the MLS. This is the largest study to date comparing on- and off-MLS home sales, analyzing more than 1 million transactions that took place between 2019 and the first quarter of 2023. The study compares homes sold on-MLS to similar homes sold off-MLS (e.g., for sale by owners, office exclusives/pocket listings, etc.) The research results corroborate findings from prior studies2, demonstrating that the MLS provides significant benefits to consumers.
Metrics
1 Record Views
Details
- Title
- On-MLS Study
- Creators
- Kevin C Gillen - Drexel University, Lindy Institute for Urban InnovationKen Schneider - Bright MLS (United States, North Bethesda)Lisa Sturtevant - Bright MLS (United States, North Bethesda)
- Publication Details
- pp 1-21
- Publisher
- Bright MLS
- Number of pages
- 21
- Resource Type
- Report
- Language
- English
- Academic Unit
- Lindy Institute for Urban Innovation
- Other Identifier
- 991022200857804721
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