Question

An advantage of the multiple listing service is that it______

O requires set commissions.
O expands the inventory of comparables to inform both buyers and sellers.
O shifts the commission responsibility to the buyer.
O prohibits overpriced listings.

Answer 1

The Multiple Listing Service expands the inventory of comparables and provides a well-informed platform for sellers and buyers, enhancing market efficiency.

Step-by-step explanation:

An advantage of the Multiple Listing Service (MLS) is that it expands the inventory of comparables to inform both buyers and sellers. The MLS system plays a crucial role in the real estate market by providing a platform where many sellers, as well as buyers, participate.

Not only does the system offer an extensive list of available properties, but it also ensures that both sellers and buyers are well informed about product offerings. Additionally, the MLS fosters a free market environment where sellers can enter and exit the market freely, contributing to an efficient market price system and preventing misallocation of resources.