Chicago MLS
You can list on the Chicago MLS for a one time flat fee and get listed on all the major real estate websites. For sale by owners, builders, developers and industry insiders see this as a great option for getting the marketing exposure they need to get their property sold.
The MLS (multiple listing service) is an association of real estate brokers. The purpose of the association is to share listing and cooperate in the selling of homes. There are around 900 MLS systems in the country.
The MLS Is How Agents Cooperate and Share Commissions
When a home owner wants to sell their home they generally hire a real estate agent. (those not selling with an agent are generally called an FSBO or for sale by owner).
A agent representing a seller is known as the listing agent. The listing agent must have a signed agreement with the seller in order to sell his home and put it on the MLS (per Illinois state law). Generally a listing agent in northern IL gets 4-6% commission (paid by the seller).
When the listing agent puts the property on the MLS they also put in the commission being offered to all buyers agents. That commission amount is coming out of the listing agent commission from the seller.
So for example, let’s pretend that the listing agent is getting paid 5% commission and they offer 2.5% on the MLS to a buyer’s agent. If a buyer’s agent is attached to the buyer then the listing agent gets paid 5%-2.5%= 2.5% and the buyer’s agent gets paid 2.5% at closing. If there is no buyer’s agent representing the buyer in this example, then baring any other agreement, the listing agent gets the whole 5% commission.
The buyer’s agent that successfully closes (purchases) the house gets paid at closing. The most common percentage being offered a buyer’s agent is 2.5%. That being said the compensation varies from listing to listing.
About the Chicago Metro MLS
The MLS in the Chicago area has over 35,000 members (8,000 offices) and covers most of northern Illinois and parts of Wisconsin and Indiana. Interestingly most agents that belong the the Chicago MLS cannot list properties in WI and IN because they are not licensed there. There is only one MLS for the Chicago Metro Area – MRED.
MRED (after the merger of MLSNI and MAP) is the Chicago MLS. It is one of the largest in the country and covers multiple real estate boards including:
Belvidere Board of REALTORS®
Chicago Association of REALTORS®
DeKalb Area Association of REALTORS®
Heartland REALTOR® Organization
Illini Valley Association of REALTORS®
Kankakee-Iroquois-Ford Association of REALTORS®
Mainstreet Organization of REALTORS®
Northern Illinois Commercial Association of REALTORS®
North Shore-Barrington Association of REALTORS®
Oak Park Area Association of REALTORS® REALTOR®
Association of the Fox Valley
Three Rivers Association of REALTORS®