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FAQ: Is It Better To Buy An MLS Number Or Hire A Real Estate Agent?

By
Real Estate Agent with Platinum Realty SP00229578 2007027091

Okay, this is filed under Frequently Asked Questions but, really, I don't get that many requests from someone about buying their own MLS number. I did today! Heartland MLS Rules & Regulations 

The woman who asked the question is a professional in the academic field so would have no reason to know anything about the MLS, how it was formed, who maintains it, or how it operates. Her question was a perfectly legitimate effort to attain knowledge and I was happy to contribute to her edification.

Apparently the woman's husband had been told (by a well meaning friend) that one could purchase their own MLS number, thereby avoiding the commission charged by a real estate agent. If you imagine that you know nothing about real estate, this actually sounds quite reasonable, doesn't it?

But it's not and here's why:  Multiple Listing Services (MLS's) are tools used by professional real estate agents and brokers to communicate with one another the status of all property listings. One has to be a member of their local MLS in order to participate. One has to be licensed with the State Board and pay dues to become a member of an MLS. Often, members are also required to belong to Local, State, and/or National Real Estate Associations before being allowed to participate. When a licensed, paying member of an MLS enters a new listing into the MLS, they are given a number for that listing; that's the MLS number. The property is for sale but not the MLS number. 

And MLS's have rules. Heartland MLS rules and regulations index page 

Our MLS has 28 pages of Rules & Regulations. These rules and regulations cover Listing Procedures, Selling Procedures, Prohibitions, Division of Commissions, Participant in Transaction, Membership and Service Charges, Compliance With Rules, Meetings, Enforcement of Rules Or Disputes, Confidentiality of MLS Data, Responsibility for Accuracy of Data,  Ownership of Heartland MLS Compilations and Copyright, Use of Copyrighted MLS Compilations, Internet Data Exchange (IDX), Use of MLS Information, Arbitration of Disputes, Standards of Conduct, Definitions, Virtual Office Websites (VOW), and Changes in Rules and Regulations. 

As members of MLS, we are required to adhere to all rules, regulations, and procedures. If an agent does not adhere to the rules, that agent is subject to discipline including fines, suspension, and expulsion. Suspension from one's MLS would put a serious crimp in one's ability to earn a living. Depending upon the violation, they might also be subject to disciplinary action by the State Board. 

Most professions have websites specific to their profession that they access to perform actions, look up results, or share information. Doctors, nurses, attorneys, engineers, geologists, scientists, teachers,  accountants, detectives, arson investigators - all professions of which I'm aware have websites that are not open to the general public. 

Many professions, real estate included, allow visitors to access portions of their site. The parts of the site to which the general public is allowed does not contain privileged or confidential information. It is made available to the public as a courtesy for the purpose of giving them accurate and up to date information. 

This is what the MLS is in real estate, too. The part that the general public is allowed to access does not contain privileged or confidential information. It contains information that the public finds useful. The information is up to date and accurate because it's members are required to keep it so. 

So, once the caller today understood what the MLS is, she said "Oh, well, in that case, I think it's best that I call a professional real estate agent." She was not from the Kansas City area so I gave her the name and number of an Active Rain member in New Jersey. 

 

Posted by

Maria Morton,Realtor© Call 816.560.375Eight Mobile.     Google Maria 

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*Information obtained from Heartland MLS is deemed reliable but not guaranteed. *This is an eclectic blog combining business with a little humor; please consult a licensed  professional before making life altering decisions. ♪♫  

Maria Morton of Chartwell Kansas City Realty is a licensed Real Estate Agent in KS & MO.  816-877-8200 Office 

4141 Pennsylvania Ave Ste 105 Kansas City, MO 64111   Maria Morton Copyright © 2008-2018 

Comments(12)

Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Well, I've not heard it referred to in that manner but that is exactly what sellers do who pay an agent a few hundred bucks to plop their home into MLS. For-sale-by-owners do it and then they offer a selling commission but no listing commission, apart from the few hundred bucks to put the listing into MLS. They think buyer's agents are dying to work with them when in reality, an agent sees there is no agent or limited service on the listing side, and that home often drops to the bottom of their home showing list, if it's even on their radar at all.

Apr 22, 2013 12:42 AM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Yes, our MLS started allowing Limited Service Brokers into our MLS last year. They often don't do even the minimum required by MLS and if you call them to get details they neglect to enter, you're lucky to be able to reach anyone on the phone. The poor sellers rarely get what they were promised in a timely manner. I always caution sellers who use them to check their listings daily and keep calling until the information is complete - especially photos. Photos are so important in listings. I will show my buyers these listings when it meets their criteria but often we run into difficulty setting up showing appointments. The sellers don't realize how showings work and have no support when an agent does want to show their home. Usually, we have to meet the seller at the house according to their schedule. All the little things add up to the seller sitting on their house for months while nearby homes sell in 60=90 days. I feel bad for the ones who waste their money like that but what can we do? 

Apr 22, 2013 04:38 AM
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

From what I've encountered, limited service is no service.  Facilitators and limited service brokers don't earn their money, regardless of promised "discounts".  I saw a limited service listing recently with a cheap photocopied black-and-white flyer in a brochure box, including photos that were so dark you couldn't make out whether the room pictured was a bathroom, a kitchen or a bedroom.  The ad copy on the flyer was full of misspellings and couldn't even be described as written at the first grade level.

And if that's not bad enough, the seller winds up sitting at their own open houses and pays for marketing/title/closing items on an ala carte menu which adds up to nearly as much as they would have paid a full-service broker. 

Apr 22, 2013 05:16 AM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

I think that's the worst of it, Eric. The poor homeowner thinks they're going to save thousands of dollars by buying the cheapest package from the Limited Service Broker. Then, after a few weeks go by, the seller buys another bit or an upgrade. This continues until the owner/seller has spent way too much time and money to turn back. In the meantime, the house has missed it's big opportunity to sell quickly for a good price. 

Apr 22, 2013 05:59 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Maria,

There is a lot of confusion with consumers - you handled this perfectly, and I know that customer appreciated your time and professionalism!

Apr 22, 2013 06:03 AM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Thanks Lisa! She did appreciate my time and said she wished that I was there so I could be her agent. The main thing is to give people the information they need to make wise decisions. I'm a believer in the power of knowledge. 

Apr 22, 2013 06:21 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

What a bizarre question!   That sounds like buying a Vanity License Tag for your car, or maybe your own personal 1-800 Number!   You explained it well, Maria.

 

Apr 22, 2013 10:42 AM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Ha ha, Fred! It's amazing all the misconceptions the general public has about real estate. 

Apr 22, 2013 10:56 AM
Bryan Robertson
Los Altos, CA

I think the well meaning friend was inferring she could list with the discount brokers who merely put properties on the MLS for a small fee.  I wish that weren't possible.

Apr 22, 2013 12:52 PM
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Hi Maria, Great explanation to the caller. I'm thinking she was talking about doing what many already have mentioned in "buyiung her own MLS number". I was recently going over "comps" with a client pryor to making an offer in a very hot neighborhood. As we were scrolling through the listings it was noted that all of them sold at list or well above the list price...all but the limited listing property which sold for much less. My buyer was the one that said "Oops..they should have listed with an agent". You went above and beyond with not only your explanation but hooking her up with an agent. Nice work!

Apr 22, 2013 01:52 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M
Maria - I hadn't heard this terminology before though I know there are companies who will list a house on the MLS only.
Apr 22, 2013 02:58 PM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Bryan, in this economy people are trying to save whenever possible. Looking at it from her perspective was actually illuminating for me. Sometimes we forget how little understanding the general public has of the real estate business. 

Thanks, Cindy! Yes, as soon as they understand, the answer is obvious. 

Christine, yes we actually have a section on Limited Service Listings in our MLS. Like Bryan, I would like to get rid of it because they tarnish our reputation. The general public often doesn't know the difference so we get blamed for their ineptitude. 

Apr 22, 2013 04:09 PM