Buyers and Sellers both Benefit from the Utah MLS 

The Utah Multiple Listing Service (MLS) is a service that enables brokers in Utah to establish contractual offers of compensation (commission) among fellow brokers.  The MLS facilitates cooperation with other broker participants.  The MLS accumulates information to help appraisers do appraisals.  The MLS shares information to better serve broker's clients, customers and the public here in Utah.  The MLS for our area is called the Wasatch Front Regional Multiple Listing Service.  I have been a member of this service for 15 years here in Utah County.  One thing I have noticed about this service is that the prices always go up.  

Membership now costs $300 per year and $100 to hire an IDX company.  According to my research the MLS has over 12,000 members.  Okay 12,000 x 300 = $3.6 million dollars.  Uhh . . . thats alot of money.  I will restrain myself from making alot of comments about this here.  I hope the money is being used wisely.  I like the new system that has been integrated called Metis or more commonly known as the public MLS (UtahRealEstate.com).   

A multiple listing service's database and software is used by real estate brokers in real estate representing sellers under a listing contract to widely share information about properties with other brokers who may represent potential buyers or wish to cooperate with a seller's broker in finding a buyer for a home, lot, duplex, 4plex, or even commercial property.  In Utah we use the site www.UtahRealEstate.com.  The listing data stored in a multiple listing service's database is the proprietary information of the broker who has obtained a listing agreement with a property's seller.  This service is very valuable to us Realtors in Utah. 

The primary purpose of the MLS is to provide a facility to publish a "unilateral offer of compensation" by a listing broker, to other broker participants in that MLS. In other words, the commission rate that is offered by the listing broker is published within the MLS to other cooperating brokers. This offer of compensation is considered a contractual obligation, however it can be negotiated between the listing broker and the broker representing the buyer. It is very uncommon for Realtors to renegotiate a different commission than what is being offered on the MLS. 

Discount MLS Commission Rates in Utah County

The typical commission offered to a buyer's agent in Utah is 3%.  I think about 90% of the listings offer a 3% commission.  I think 5% of the listings offer less than 3% and 5% offer more than 3%.  Yes, believe it or not some people offer more.  The highest I have ever seen is 5%.  The lowest discount rate I have ever seen is half of one percent.  It is becoming more common to see a discount 2.5% commission on the Wasatch Front Regional Multiple Listing Service. 

Most Realtors are somewhat annoyed with commissions under 2.5%.  I have posted a few commissions at 2.5% and other Realtors would not show or bring offers on the property.  This is the individual agents choice.  If they think they can make more money selling a different home here in Utah County that is up to them.  Team Teasdale Realty offers variable MLS commission rates.  We think it is better to explain the advantages and disadvantages of the variable commissions and let the consumer make the final decision on what rates they would like to pay.

Since the commission for a transaction as well as the property features are contained in the MLS system, it is in the best interests of the broker participants to maintain accurate and timely data.  The data on the MLS is live and very accurate.  You can view all the homes for sale in Utah by visiting our sites www.UtahCountyListings.com or www.TeamTeasdale.com.

For Sale by Owners need a Realtor to be Posted on the MLS 

The Wasatch Front Regional MLS system restricts membership and access to real estate brokers, their agents and affiliates like appraisers who are appropriately licensed by the state of Utah.  Members often belong to a local board or association of Realtors.  Team Teasdale Realty belongs to the Utah County Association of Realtors.  We are also a member of the National Association of Realtors.  

A person selling his/her own property - acting as a For Sale By Owner (or FSBO) - cannot put a listing for the home directly into the MLS.   They need to hire a Realtor.  Similarly, a properly licensed broker who chooses to neither join the Utah County Association of Realtors nor operate a business within the association's rules, cannot join the MLS.   However, most of us Realtors choose to join because it helps us well our homes.

If you would like to put your home on the Utah MLS for a reasonable rate or just have Real Estate related questions give us a call.

Welcome to my Utah County Real Estate blog!  We are located  in Mapleton, Utah.  Our team combines proven traditional real estate practices and represents the leading edge in the future of real estate marketing by merging internet technologies, service, communication, information and analysis with those traditional practices to provide our clients with an exceptional real estate experience and superior marketing.

Paul Teasdale, Principal Broker
ABR, CRS, e-PRO, QSC, Finance  BYU
15 Years Experience, 800+ Homes Sold
Team Teasdale Realty, Utah County Real Estate
Phone: 801-491-7653