What is the MLS (Multiple Listing Service)?
The Multiple Listing Service (MLS) is a database system used by real estate agents and brokers to share information about properties listed for sale. When a real estate agent lists a property, the listing details (price, photos, property specs, agent contact info) are entered into the local MLS, making it visible to all other agents and brokers in the system. The MLS is the central marketplace for real estate -- most properties sold through agents are listed here.
There is no single national MLS. Instead, there are hundreds of regional MLS systems across the country, each operated by local real estate associations. For example, the Houston Association of Realtors operates HAR MLS, which covers the greater Houston area. These regional systems are increasingly interconnected, but each has its own rules, data standards, and membership requirements.
Who has MLS access
- Real estate agents and brokers: Full access as members of the local board of realtors. This is the primary audience.
- Public (limited access): Consumer-facing sites like Zillow, Realtor.com, and Redfin receive MLS data feeds with some delay. Active listings are widely available, but sold data (the most valuable for investors) is often restricted.
- Investors (via tools): Real estate data platforms like Deal Run access MLS data through licensed data feeds, providing investors with the comparable sales data they need for deal analysis without requiring an agent or real estate license.
What MLS data includes
MLS listings contain the most comprehensive property data available:
- Active listings: Currently for sale properties with asking price, photos, property details, showing instructions, and listing agent contact information.
- Pending listings: Properties under contract but not yet closed. Useful for understanding current market activity.
- Sold listings: Closed transactions with actual sale price, days on market, closing date, and concessions. This is the data investors use for comps.
- Property details: Square footage, bedrooms, bathrooms, year built, lot size, garage, pool, renovation details, and property descriptions.
- Photos: Interior and exterior photos that help assess condition, renovation quality, and comparable appropriateness.
MLS and investor deal analysis
MLS sold data is the gold standard for running comps. It's more current and detailed than county deed records, includes photos (so you can assess condition), and shows the actual sale price (not just the deed recording, which may not include price in non-disclosure states like Texas). When Deal Run pulls ARV comps, it queries MLS data to find the most accurate and recent comparable sales.
MLS data also helps with pricing wholesale deals. By analyzing what similar properties are currently listed for (active comps) and what they've recently sold for (sold comps), you can accurately estimate both the ARV and the current market conditions in a specific area. High days-on-market numbers suggest a slow market where pricing needs to be more aggressive. Low days-on-market means properties are selling quickly.
Off-market vs on-market
Properties listed on the MLS are considered "on-market." Properties NOT listed on the MLS are "off-market." Most wholesale deals are off-market transactions -- the wholesaler contracts directly with a motivated seller who never listed the property with an agent. Off-market deals avoid agent commissions and competing offers, which is part of why they can be acquired below fair market value.