Home Buying Tips

Maintained by real estate associations in all fifty states, the Multiple Listing Service (MLS) is, by far, the largest list of homes for sale.

How it works:
	Jim Seller needs to sell his beach house, so he signs an agreement with real estate broker-A.
	Jim Seller agrees to pay Broker-A 6.5% of the selling price. Broker-A agrees to sell Jim Seller's beach house at the highest price possible. All* other real estate brokers and agents are bound by the agreement between Jim Seller and Broker-A

	Broker-A immediately lists Jim Seller's beach house in the local MLS, making it available to every real estate agent with an interest in beach property.

	Broker-B has been trying to find a beach house for Mary Buyer.
	He takes her to see Jim Seller's property and she buys it. Broker-B and Broker-A split the 6.5% commission paid by Jim Seller.

	Unless Broker-B is in a state where Buyer Agents are allowed, AND unless he or she has signed a Buyer Broker Agreement with Mary Buyer, Broker-B is legally bound to get top dollar for Jim Seller's beach house even though he is Mary Buyer's agent!
	Why ?	Because he is a member of the local MLS and bound by the agreement between Jim Seller and Broker-A

* Technically, only members of the local MLS are bound by the agreement between Jim Seller and Broker-A, but MLS membership is a business requirement for real estate brokers and agents almost everywhere.

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The MLS and your agent's legal obligations