Has the MLS Lost Relevance?

Many agents will often emphasize the necessity of being on the Multiple Listing Service (MLS). The concept of the MLS was created 100 years ago to help homeowners market their homes for sale. Before the technological advances we have today, the MLS was the only way potential buyers could find homes for sale.

Enter the Internet and real estate websites like Zillow. People search for homes on their computers and phones regardless of being listed on the MLS.

We know what you're thinking. Why not be listed on the MLS? It's just another way for people to find your home, right? It's not that simple.

When you list on the MLS, you are agreeing to terms that nearly guarantee your buyer will be represented by a buyer's agent. And because the outdated agent/MLS system still expects the seller to pay for buyer agent commissions, you are locking yourself into unnecessary costs that can add up to thousands and thousands of dollars. This is a big problem because most homeowners are not fully made aware of how much the traditional agent/MLS system actually costs them. In fact, in 2019, there were multiple class-action lawsuits filed against the MLS and many of the biggest real estate brokers in the country. The lawsuits claimed that the MLS locks home sellers into paying unnecessary and costly buyer-side commissions in a way that does not act in the home seller's best interest. We all know how this turned out.

Now, compare the cost of being associated with the outdated MLS to the modern way real estate can be done today. Buyers are using websites like Zillow and Trulia which have tens of millions of unique monthly visitors, literally multiples of the number of unique visitors as Realtor.com. Is that additional MLS listing worth several thousands of dollars? No. To really drive the point home, think about your own buying habits for a second. How many homes have you personally looked at online before considering the options for selling your home?

The MLS is an outdated system. It does not add enough value for the cost and is causing sellers to waste their money. It's like using the phonebook to find a business or going to Blockbuster to rent the latest movie release. Good business models at one time, but irrelevant today.