span think of when the MLS is
class="cap">T he mentioned.
answer to the question
MLS, (in the US) is simply a
really depends on your location. database of property for sale in
If the question was asked in the the marketplace.
USA, I think 99% of Realtors
In economic terms, it attempts
would respond 'industry tool'. to create the perfect market,
Ask the question in Europe and bringing all buyers and all
the answer would be reversed with sellers of property together in
99% of estate agents referring to one place.
MLS as digital advertising.
In the US market, putting
So what makes this technology be aside FSBO, (For sale by Owner)
seen by the same industry, in two and the small number of private
large geographical markets, in transactions, the MLS has
two totally different ways?
effectively achieved this
The answer I like to call the 'perfect market' status.
4P's.
In Europe, however, MLS is
PRODUCT, PROFESSIONALISM, something completely different.
PRACTICE, & PERCEPTION
So different in fact that it
1. PRODUCT
cannot really be defined as MLS.
What is MLS?
Instead I am going to call it ALS
The Multiple Listing Service or Advertising Listing
in real estate terms can mean two Service.
things. One form refers to the
ALS differs from MLS at a
type of agency agreement entered fundamental level because it
into between a Realtor and fails in the primary objective of
vendor. Whilst this governs the an MLS to create a perfect
documentation for entry into the market. ALS provides only half of
MLS database (USA), it is the the solution in that, at its most
database itself that most people successful, it can only bring all
the sellers in the market place not have to compete for its place
together in one place. In reality in the market thus reducing the
of course,a proliferation of ALS cost of providing the service. In
providers, (advertising the US part of the cost to the
companies) means that any one realtor can therefore be used to
provider fails in even being able regulate the profession.
to achieve this goal.
PROFESSIONALISM, PERCEPTION &
ALS therefore reverts to the PRACTICE
rules of advertising. It is
Here the two market differ
limited by the marketing success greatly. In the US, all real
of the provider to gain exposure estate agents are required to be
to as large a portion of the licensed. In obtaining the
market as possible. The cost of licence they have to prove by way
exposure is then duly passed onto of examination that they are
the advertiser, the estate agent. proficient in the General
The increased costs of Principles of Real Estate and
competition for exposure, in turn have a working knowledge of
limits the number of sellers, current legislation affecting the
further limiting the success of industry.
any one provider to create an
Within a framework of
effective market.
regulation comes trust. Trust in
The benefits of MLS as an the profession by the public.
'almost' perfect market are; Trust between professionals
reduced cost and a quicker within the industry to be able to
transaction timeframe. Governed co-operate with each other.
by the most basic of the laws of
The regulation of the industry
supply and demand, buyers and in the US helps to define one
sellers are able to find each aspect of practice that fails in
other more quickly and as an the markets across Europe.
effective monopoly, the MLS does
Who is the Agent acting
for? which ultimately is left open for
In the US this is defined by abuse.
the type agency contract entered
In the end the agent/client
into and further defined by relationship is reduced to that
regulations governing Dual of salesperson/shopper,
Agency, (acting for both buyer belittling the vast majority of
and seller). The notification agents, who practice their
rules for this 'Conflict of profession in an exemplary
interest' are clearly set out and manner.
require all parties to agree in
Conclusions
writing before proceeding.(rules
The US market is a model to be
differ from state to state). The followed. Needed regulation is
role of the agent is therefore not overbearing and allows the
defined and all parties to the MLS to facilitate efficiency
transaction are under no within the industry, which when
illusions of who is acting for all is said and done, means that
who.
sellers of property, sell
Across Europe regulation is quicker. Buyers find what they
virtually non-existent. Looking are looking for quicker, and
after the interests of the Agents facilitate more sales.
parties involved tends to fall on
In Europe, changes are afoot.
the solicitor,(attorney) as the If individual countries within
only regulated 'professional' the European Union fail to
involved in the transaction.
regulate at a National level
The ambiguity of the under increasing pressure from
client/agent relationship only the public, then the EU now has
enhances the lack of trust in the the power to legislate. Until
professional relationship which recently this was not possible,
may, for the most part be but with the harmonization of
conducted in good faith, but contract law across the E.U., the
path to EU-wide Agency Law represented properly in one of
Directives from Brussels are now the biggest purchases of their
a possibility. lives. The US model whilst not
Bad property law is already perfect, is a good place to
being challenged at E.U. level start.
with the Spanish LRAU 'Land Grab
Law' being challenged in the
place. AMLA, The Association of align="center">
Multiple Listing Agents recently
launched a fully fledged MLS for the Spanish Property Market type="text/javascript">
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Article Tags: mls, market, trust
