What is a net listing?

A net listing is defined as a listing arrangement where the seller specifies the minimum amount they want to receive from the sale of their property. The real estate agent is then permitted to sell the property for any amount above that specified net price, allowing the agent to keep the difference as their commission. This type of listing places a strong emphasis on the seller's desired net proceeds from the sale.

In this scenario, the agent’s motivation is tied to achieving a sale price that exceeds the seller's expectation, as the excess will constitute their commission. This contrasts with traditional listing types where a predetermined commission percentage based on the sale price is agreed upon upfront.

It's important to note that while net listings can be appealing to some sellers for their straightforward nature regarding net proceeds, they are often subject to legal scrutiny and may not be permitted in all jurisdictions due to potential for ethical conflicts and unrealistic pricing strategies.