What’s a “net” listing and is it good for sellers?
September 2nd, 2008 By Peter G. Miller
Imagine a situation where a real estate broker said “your home is worth $300,000. But instead of taking a commission on that $300,000 value, my fee will be limited to everything above that figure.”
Sounds pretty good – unless the home is worth substantially more than $300,000, something a broker would know but an owner might not. If the property sells for $350,000 the broker would get a $50,000 commission with a net listing.
Because they can be easily abused, net listing agreements are banned in most states, if not all.
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Syndicated originally by Content That Works and posted with permission.
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