Guide on MLS software development for real estate

Multiple listing services (MLS) is one of the oldest types of real estate software and is still widely used. Modern technologies have made this application type more convenient, saving agents time and enabling new cooperations. 

MLS apps are routine for some well-established local real estate markets. However, many emerging and prospective markets lack such software. Consider it a blue ocean and your unique chance to create a real estate solution that can transform how the industry operates in your country, region, or city. 

Or you and your team may be tired of using an old-fashioned multiple listing service available in your neighborhood and having an idea of how to build an MLS that truly meets the market's needs. 

No matter what your reason for developing an MLS is, you have chosen the right article to read. Here, you will learn about all the nuances of this task. We will discuss the core functionality, the real estate software development cost and steps, the monetization opportunities, etc. We do our best not to leave any of your questions unanswered. 

Let's start with a short introduction to what is an MLS in real estate. If you know the multiple listing service concept inside out, feel free to skip this chapter and move to the next ones, which tell you in detail about the desired features and steps of custom MLS solution development. 

If you are still reading, we are glad you want to improve your background knowledge of the topic. 

A Multiple Listing Service (MLS) is a database or platform used by real estate professionals to share property information that is available for sale or rent. 

It is a centralized marketplace where agents and brokers can input, manage, and access property listings. There are many MLS real estate software benefits. For example, it fosters collaboration and partnerships in the real estate industry, allowing to achieve better deals faster. 

Most MLS solutions are general-purpose databases, meaning they list any property within their operation region. However, some marketplaces focus on specific properties, such as: 

• Luxury homes
• Commercial property
• Vacation rentals

Before starting your real estate MLS development, you will have to analyze the market you are entering. Do multiple listing services already operate in this area? What type of property do they cover? Are they successfully serving the needs of their target audience, or is the market actually striving for a new solution? 

You need to decide what type of property you want to list. This will impact your app design, functionality, and the whole custom MLS software development process. And, of course, define your strategy in outplaying existing and emerging competitors. 

Multiple listing systems (MLS) may become a good business as they have considerable monetization potential. Let's take a look at different strategies for earning money with an MLS mobile app:

Subscription fees: Many MLS organizations generate income through membership fees paid by real estate agents and brokers who want access to the MLS database. These subscription fees can be a significant source of revenue for organizations, especially if they have a large and active membership base.

Listing fees: Some MLS providers may charge listing fees for agents and brokers to submit their property listings to the MLS database. Listing fees can vary based on factors such as property type, listing duration, and additional services offered by the marketplace.

Data licensing and syndication: MLS product providers may license their data to third-party vendors, such as real estate websites, mobile apps, and data analytics firms, for a fee. These agreements can generate additional income for MLS organizations by monetizing their property listing data.

Value-added services: MLS companies may offer value-added services and products to their members, such as training programs, marketing tools, and professional development resources. These services can generate additional revenue streams for MLS organizations and enhance their value proposition to members.

Partnerships and sponsorships: As an MLS system operator, you may enter partnerships and sponsorships with real estate related companies, service providers, and industry stakeholders. These partnerships can provide additional revenue opportunities through sponsorship fees, advertising revenue, and revenue-sharing arrangements.

As you can see, a multiple listing system enables you to earn money and generate value for the real estate industry. If this sounds attractive to you, then you should definitely consider the possible features that your MLS mobile app should present. 

A multiple listing service can become successful only if it provides features that match its target audience's needs. If you exceed their expectations, that's even better, as their positive feedback helps you attract more users and turn your MLS software solution into a rewarding project faster. 

How do you know what functionality to include in your real estate app? Start with learning about your competition. 

You have to refine your idea by researching the existing MLS operating both in your region and on other continents. Here, we give you a short list of property platforms that you might want to analyze:

• Centris - an MLS serving the province of Quebec, Canada
• California Regional Multiple Listing Service (CRMLS)
• Arab Multiple Listing Service - operating in Dubai, Qatar, Egypt, and other Arab countries
• Sotheby's International Realty - listing only luxurious properties around the world

Research the MLS websites you find relevant to your case. What do they have in common? What specific features or additional services does each of them offer? What ideas can you implement in your new real estate application?

Of course, there are some features that you don't want to miss. These features make an MLS. Here is the most important functionality for MLS software development: 

• User management 

Ensure that your application allows real estate brokers to register on your platform, fill out their profile information, access specific information on the platform, and manage the availability of their personal data to their colleague brokers. 

• Property listing management

The realtor should be able to create a listing, fill it with relevant property information, and add photos, videos, and 3D visualizations. Listing management also includes possible changes to the status and availability of the object. 

• Broker dashboard

Agent dashboard should include tools for managing listings, leads, contacts, and transactions. Also, don't forget about collaboration features for agents to share listings, communicate with clients, and coordinate showings. 

• Search and filtering

Allow convenient filtering with the possibility to save search criteria for later or subscribe to receive notifications about new relevant listings, prices, or status changes in saved listings. 

• MLS integrations

An MLS listing software should include integrations with external services, such as social media, geolocation services, analytics apps, etc. 

Needless to say, your application must comply with industry standards, data privacy regulations, and fair housing laws. Also, your local laws and regulations may require specific actions; pay attention to them.

Along with traditional features, you may want to surprise your users with trending functionality. 

• AI for smart search

Recommendation systems based on artificial intelligence are much more effective than manual filtering. You can also implement generative AI to assist with listing descriptions, chatting, etc. 

• Virtual reality

Enable virtual tours of the property. This is extremely helpful if the potential buyer is far from your property but can benefit most from the showing. 

• Blockchain

With blockchain, you can guarantee the security of transactions online. Also, property tokenization is a possibility that enables clients to invest only a part of the property's price and, therefore, become its owners. 

If used wisely, trending features become your competitive advantage and the best marketing tool.

Now that you know what features your property listing services should include, get ready for the actual development process. 

If you have an internal technical team, that would be great. If not, consider ordering property management app development services. No matter which of the two options you choose, you still have to go through the three important steps: the discovery phase, MVP development, and further product improvement. Let's discuss them in more detail. 

Discovery is the preparation stage. Here, you must learn as much as possible about your competitors, analyze your target market, talk to focus groups, etc. This gives you an understanding of what the market already has and what it strives for. 

Based on this information, you create a development plan. This plan is reflected in a few discovery deliverables:

• Project scope of work
• Project timeline
• Acceptance criteria
• App prototype
• Risk mitigation plan
• App architecture outline

Consider these deliverables a detailed map with checkpoints that will lead your development team to your destination—the ready real estate multiple listing service.

Your actual journey starts here. 

For your MVP, you have to choose the core features and stove for the shortest time to market. Your main goal is to get the product to users' hands and start testing it in a real environment as soon as possible. 

To develop an MVP, you need a team of technical specialists, including a designer, front-end and back-end developers, and quality engineers. You will also benefit from cooperation with a product manager who takes full responsibility for the product, interacts with the stakeholders, and manages the development team. 

Release your MVP and start gathering user feedback. Their opinions will give you many ideas for improvement you usually wouldn't get yourself. Think of how you can improve your product and create the scope of work for the next iteration. 

Also, an MLS MVP may be your asset when approaching investors. They are eager to fund startups that dare to realize their vision in a real-world application. 

Don't rest after your multiple listing MVP hits the market. You have valuable data about app usage and receive customer feedback. This opens many opportunities for improvement. 

First, take care of all technical issues and maintain the applications. 

Then, focus on adding new features and scaling the MLS app. There's no limit to app development, as a successful real estate startup always sees improvement and growth opportunities. 

Running a multiple listing service for real estate is a great business opportunity. This model allows you to secure a stable income and benefits your broker colleagues as well. 

However, you also have to prepare for significant upfront investments. Building an MLS software solution from scratch may take 4+ months to develop and cost $100,000+. 

However, these investments are continuous. You can start with a smaller sum of money and attract funding from investors to pay for MLS software development services and app maintenance. 

The real estate market develops unevenly. Some regions already utilize the latest technologies to optimize the brokers' work, while spreadsheets are considered too innovative in some other countries. 

Both types of markets have much to offer to real estate software development providers. 

Now that you know how to build a multiple listing service (MLS) from scratch, you are ready to revolutionize the real estate market in any region.