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Tuesday, December 23, 2014

MLS: Cooperation in Competition

The Multiple Listing Service (MLS) is like a guild for real estate brokers. It's where they gather and share information about real estate properties for sale, and put it up in their databases for buyers to see. In exchange, brokers agree to compensate each other for providing the details, usually a portion of their commission.

One way to sum it up is "cooperation in competition." It may seem contradictory, but cooperation fosters competition in a way. How can small-time brokers hope to best giants and veterans of the industry? The broker of their choice is left to the buyers, but an MLS levels the playing field.

Without a unified listing, it would be "first come, first serve" for real estate properties.
They'll go after properties and create their own system, counterproductive to the market. It will also give buyers less freedom in choosing their broker, since a property tied to a broker's listing means he or she can only deal with that broker alone.

Ultimately, it’s up to the brokers themselves how they'll take advantage of this benefit. Aside from them, however, property management companies could also benefit from the use of MLS. With it, they are able to offer up their spaces for lease much easier to potential clients. This expedites their work in finding lessees tenfold.

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