The MLS used to be off limits for those people who wanted to sell their home themselves.  The so-called For Sale By Owner or FSBO.  While selling a property yourself can be quite cost-efficient, it can also be much more problematic.

Not only do you have to dress and show the house yourself, you also have to co-ordinate the various parties in order to keep the chain or the process moving.  A real estate agent, or realtor may seem like an expense, after all 5-6% of a sale price can be a lot of money.  Most agents will earn that fee, not only by saving you hours of administration, phone calls to lawyers, selling or buying agents but also the other things that are needed to facilitate a property purchase.

The other limitation for an FSBO was the fact that the home couldn’t be featured on the MLS.  Only realtors have access to the MLS so the private seller didn’t have the in-roads to it.  This limited the exposure a private seller had, and forced them to use alternative advertising methods like newspapers, private advertising and the internet.

Even with all this, the private seller still left themselves at a disadvantage as most people know about, and use the various MLS portals available.  Then some enterprising agents decided to offer fixed-fee entries on to the MLS for FSBOs. 

This is good news for all parties concerned.  From the buyers perspective, there is the knowledge that there is one less cog in the wheel with a private seller.  From the sellers perspective, they get more exposure for a fixed fee, and they are able to utilize one of the most popular home-buying tools available.  This makes the prospect of selling their home much more likely.  It also removes one of the biggest barriers to selling a home privately.  While agents have a definite part to play in home buying and selling, consumers should have the option to choose whether to use them or not.  From the agents point of view, they make a little bit of instant money for relatively little work.

Until recently, the MLS was regarded as a closed and somewhat anti-competitive system.  By allowing more freedoms in the way it was used, the agents, and users gained much flexibility.  It also allows the MLS to survive even now, despite being viewed quite negatively and as old-fashioned.  The newer RETS system may take over eventually, but for now MLS is still king.

Flat fee MLS listings is a move that benefits everybody.  The more friendly and approachable the system is, the more likely people are to work with it.  The more inventory it contains, the busier the market appears, even if that appearance is distorted slightly.  A busier marker means keener prices, so again it’s another win-win situation for all involved.