Net listing
An arrangement where the seller sets a minimum take-home price and the agent keeps anything above it. Banned in most states because it creates a conflict of interest.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
A net listing pays the agent everything above a floor you set, which gives them a reason to keep the price low in your ears. It is banned in most states, and an agent who proposes one is proposing something you can check.
Part 2 of 4
A simple example
An agent offers to sell your home for a net of $280,000 and keep whatever it brings above that. It sells for $310,000.
| What happens | Under a net listing |
|---|---|
| It sells for $310,000 | You get $280,000; the agent keeps $30,000 |
| It sells for $285,000 | You get $280,000; the agent gets $5,000 |
| In most states | The arrangement is not allowed at all |
A net listing pays the agent to underprice your home to you.
Part 3 of 4
What people get wrong
That it aligns the agent's interest with yours. It aligns it against you on the one number that matters.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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