A net listing is a type of real estate listing agreement in which the seller sets a minimum net price they want to receive from the sale of their property, and the real estate agent retains any amount above the net price as their commission. While this arrangement can create an incentive for the agent to obtain a higher sale price, it may also present a conflict of interest, as the agent may prioritize their own financial gain over the seller’s best interests. Net listings are illegal in some states due to the potential for ethical issues.
Related real estate terminology:
Listing agreement
Exclusive right to sell
Exclusive agency listing
Open listing
Real estate commission
Listing agent
Seller’s agent
Multiple listing service (MLS)
Comparative market analysis (CMA)
Listing price
References:
Investopedia: Net Listing – Definition and Explanation
The Balance: Understanding Net Listings and Their Potential Issues
National Association of Realtors: Types of Listing Agreements and Their Implications
Leave a Reply
You must be logged in to post a comment.