MLS Only Listings - What's the Debate About?

What is an MLS Only Real Estate Listing?:

The term "MLS Only" usually refers to a listing that is taken by a broker at a set fee or very reduced cost just to place the property in the Multiple Listing Service.

The broker in most cases offers no other services to the seller. This means that the seller shows their own home, does their own contract negotiations and makes their way to closing on their own. This listing gives the seller the benefit of MLS exposure, but not much else in the way of assistance.

What Makes MLS Only Attractive?:

To sellers, it's price. The Multiple Listing Service is still the most effective marketing tool for real estate, as all the professional real estate agents and brokers use it to locate properties for their buyers. The sellers recognize this and want their property on the MLS, but don't want to pay the listing side of the commission.

The Real Estate Industry's Opinion on MLS Only:

There are two very differing viewpoints on this practice.

Realtors® mostly believe this practice to be quite risky for the sellers. Some states have passed minimum service laws requiring certain basic representational services be provided for all sellers. This takes away the ability to provide MLS only. Many real estate professionals also believe it adds risk to their business, as the seller will frequently be looking for help in the process from the buyer's agent/broker.

The Government's Stance on MLS Only:

The Department of Justice has threatened suits against states that implement minimum service legislation. The DOJ views MLS Only listing as a viable option to save consumers money in their transaction process. The government's viewpoint is that the consumer can make an intelligent choice of services they need and shouldn't be forced to pay for minimum services required in state legislation.