The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com

A large proportion of real estate transactions are carried out with the help of real estate agents.1 These agents provide expertise (on pricing, preparing a property for sale, and bargaining) and convenience (by showing the property, advertising and holding open houses, and taking care of paperwork). One advantage of working with an agent who is a realtor is access to the Multiple Listing Service (MLS), a database that compiles information on all properties listed by local realtors. Typically, realtors charge a commission of around 6 percent. The advent of the Internet has affected many markets. The real estate market is one of them. Direct marketing has always...