The Multiple Listing Service (MLS) is a well established and highly successful part of the estate agency scene in the USA and underpins their entire realty sales system.
It enables multiple agents to access each other listings under a strict protocol governing fee splits.
Part of its success lies in the high selling fees common in the States. Commissions can often top 6% and are divided several ways between the broker, buying agent, and selling agent.
Now a company is aiming to introduce a similar system in the UK.
Residential People, a portal company, is developing an MLS listing service that they say will revolutionise the current portal model and allow agents to own their data.
The company is developing a nationwide database which will focus on localising data, with hundreds of fields of information for listed properties.
Participating agents will be able to search a database and retrieve information about all homes for sale, by all participating agents.
The company says that their MLS listing service will allow agents to collaborate and share fee income.
Christopher May, Director of Residential People said:
“Already we have announced that we will be giving agents voting right shares in Residential People and now agents who have joined our platform, will have a vote on the direction the MLS will take and the system itself, as it could also encompass lettings.
“We already have a blueprint to build the MLS listing service and we can easily add this to our system. This will be a purely opt in service with agents picking and choosing what properties they would like to upload to the system.
“There would have to be a minimum fee that could be earned by agents which will hopefully help to increase their profitability, which will be great for agents who do not want to drop their fees.
“Under the new MLS service, therefore in theory the agent gets 1% and the agent that introduces the buyer also get 1%.
“I believe many agents would be happy receiving 1% and would certainly stop agents undercutting each other.
“If the listing agent also sells the property, they could still receive up to 2%.
“Some agents may still wish to charge 2.5% or 3% for their service.
“If they add the listing to the MLS, they just give away 1% to the agent that introduces the buyer for example.
“Many agents that charge lower sales commissions could also benefit as they could charge higher rates, justified by the fact that this new service will feature all the agents in the town, working on finding a buyer.
“We don’t believe that the collaboration will stop agents competing and still fighting for market share, but it will certainly make it a more even playing field.
“Over the next few months, we will be rolling out our model to other countries where we have a presence such as India, UAE and South Africa, creating international buyer opportunities.”
Comments (18)
MLS is superior agency. It did and was working.
Yes I am fighting Lloyds as they did one of the 31 banned Trading Standards practices of “Bait & Switch” on us.
We have evidence of criminal fraud in breach of the 2006 Fraud Act. Ive so far fended off 8 of Lloyds solicitors and 2 of their barristers as a litigant in person.
Would MLS work in the UK. You bet. So long as criminal bankers dont do fraud.
The Lloyds frauds have so far seen 6 go to jail and now police too in Avon & Somerset are under the spot light for covering up the frauds at Lloyds BSU Bristol
Such a shame to confuse the free portal offering with multi listing, it has put me right off Residential People, which I was pretty keen on. Why confuse things with MLS instead of sticking with the service the agents all might want?
If I list a good instruction, I wouldn’t want to offer half the fee to another agent when I know I can sell it myself? I’m sure many agents would feel the same and therefore only overpriced stock gets shared and why bother offering that?
Residential People was a good idea but complex hidden agendas are going to kill it before it starts.
Hi Lance,
I just managed to catch up with the comments on here and your post caught my eye.
We are a free to list portal and their are many benefits as you point out of helping agents (our customers ) and building a site that consumers will like. This has not changed.We are a free to list portal.
Many comments i have read on social media have been that portals have not been innovating enough over the years and that some portals dominate and stifle innovation. There is no muddying the waters with us we are a free to list portal full stop.
The MLS service is something else, which will be a purely optional service. Again looking at some of the comments on on various social media platforms there are agents that want an MLS. As you say it is not for you and may not work with your business model. This is fine and I respect that . Just to repeat we want to go out with something that is optional ,not all agents like it ,its like marmite , however you willl have the option where you pick and choose what properties,( if any), you feel this would benefit.
I hope this clarifies our position.
Lance…What if another agent could bring a better offer on more favourable terms for your client than what you can provide, would you sooner deny your client the prospect of a better deal to save your own commission?
We have been doing split commission deals in London for years and it works well . If you ever have the chance to look at the Lonres.com site this is where most London agents and now a few country agents display their properties and commissions available etc. It a brilliant site with many valuation tools and good and trusted market comment. It works for rental & sales.
Yes I was around when Henry set it up or was involved – I’ll take an updated look
Funny how most agents are not interested in sharing via MLS or are not even bothered about referring out of area and yet they share their property register/stock with RM. I guess it’s because instead of sharing a selling fee they pay a subscription. If all agents subscribed to an mls then perhaps there would only need to be one overarching sub to RM!
Have I missed a trick here? In the south-west we’ve been doing this for yonks with Experts In Property (formerly TEAM) and in other parts of the country too. The 80-odd members from Bristol to Penzance multi-list virtually all their properties and some of the agents show all other members’ properties for their area on their websites which gives the viewer to the site a wealth of properties to look at in their own search area. There’s an established fee split between agents and pretty much everyone benefits. OK, not quite as intricate as the US system, but I challenge anyone to be able to do better with the UK culture of low sales commissions – and you still have to pay for Christopher, who seems to have been living abroad for a long time!
but Richard, you have to be in TEAM and if you apply to be in a town with another TEAM member they shut you out. Good to hear TEAM is still going as there used to be quite a number of offices (must have been 20 or so) across Norfolk but just checking – it’s down to 3 so I wonder why?
Good point Chris. Nothing’s perfect in multi-listing when commissions are so low. It would be great to see some national media coverage post Lockdown showing how cheap and efficient we are compared to other countries! I don’t know what’s happening in the east, but TEAM’s successor EIP is working fine down here for the most part.
This works well abroad where vendors are happy to pay 5%+ in commission but in this country many agents think going lower and lower on fees is the answer to gaining instruction. This leaves no room for splitting a fee. Also this option versus “why would you want to try that when we can do it for 0.75%” is just another battle.
Piece of advice for Mr May – put your money on 4.15 at Epsom (when racing resumes). You’ll have a much, much better chance of winning.
Interesting concept however it wont work in this country at present, not until all real estate professionals are licensed and insured then it might get some traction. I am a licensed Broker in the States and I can wholeheartedly say MLS is not just about splitting fees, there are many different variations depending on what state or region it is in. Its way more complex than people here think it to be.
oh good ANOTHER portal!
MLS have a word with Trevor, if he is not too busy fighting the banks. See how well his is going.
MLS will not work in UK shows the naivity of people that think it will.
Still best of luck, welcome to a crowded market place where you will be quickly forgotten.
I take it you have not heard of Lonres then!!
You are right i have not. Kinda proves my point, Well done for the subtle endorsement though 😉
Smile Please,Seriously?
I believe it is in the consumers best interest that both sides of a deal have professional representation but think too many UK agents have a poverty mentality when it comes to fee splitting.