How Do Online Real Estate Listings Work?

IDX (Internet Data Exchange) is a valuable tool used by realtors to enable the public and prospective clients to search real estate listings provided by the Multiple Listing Service (MLS). IDX allows real estate companies to make searchable listings available on their websites so prospective homebuyers can search for homes for sale in their area via the Internet, effectively streamlining the house hunting process before coming in to see the realtor.

How is it used?

Most real estate agents and brokers use IDX to display property listings on their websites. Such ease was not always available to those searching for a home, however. In the past, a home seller would contact an agent to sell his home. That agent would then add the home to the MLS database that could then be searched by an agent representing a potential home buyer.
Thanks to IDX, realtors and real estate brokers can now integrate this searchable information on their websites so clients can access the information themselves. This makes sense for both the realtor and the homebuyer now that more and more people rely on the Internet as a way to research possible purchases.
The prospective homeowner is now able to come to the real estate agent with a set of prospective properties in mind, and the real estate agent has a clearer idea of what the customer wants and can afford.
This allows for a more seemless process from potential buyer to actual buyer. Consumers who are able to find multiple properties at once to view also inform their agents of the kinds of properties, locations and ammenities they're looking for in their next home. Many real estate agents cite IDX as an immensely important part of their website, business plan and overall goals when it comes to buying and selling houses on behalf of their clients.

What are the limitations?

Not all information about a home is displayed through an IDX service, however. There are certain rules, usually guided by the National Association of Realtors and Multiple Listing Service organization, that must be followed when entering in information about someone's property or home.
IDX has evolved over time to allow for a variety of search products for real estate websites, ranging from basic search (e.g., number of bedrooms, bathrooms, price) to more advanced search criteria such as acreage and year built. Search information can even be displayed on an embedded map, making it easy for customers to see what is available in a particular neighborhood and this information is typically good for the buyer and real estate agent.
The MLS property information displayed through IDX is limited to what is considered publicly accessible. Likewise, IDX essentially allows the user to search the MLS database anonymously.

Conclusion

In short, this timely tool makes it much easier for prospective property owners to narrow the search for their perfect home, and makes it easier for agents and brokers to put them in it. The time saved on the buyer and seller's part has been a massive benefit to both parties.
IDX creates a win-win situation for all parties involved!

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Drew Barton is the president of Southern Web Group. After launching his career at CNN.com, Drew founded Southern Web Group in 2004. The Atlanta Business Chronicle named him one of the top 40 rising stars under 40 years old. He is often quoted in Inc.com, SmartBiz Magazine and Microsoft’s Live.com. The International Association of Business Communicators presented Drew with the Silver Flame Award for an article he wrote about boosting website traffic. Drew is an Eagle Scout and graduate of Emory University.