agency
net listing
A net listing is a listing arrangement in which the seller specifies a minimum amount they want to receive from the sale, and the broker keeps anything above that amount as compensation. Because it creates a strong conflict of interest and can encourage brokers to mislead sellers about value, net listings are illegal in many states and discouraged where allowed. The broker's fee is not a set percentage or flat amount.
- Exam tip
- Exams usually describe net listings as illegal or unethical in many states. Spot the clue: "seller wants to net $X; broker keeps the rest."
- Example
- A seller says she wants $250,000 net. The home sells for $280,000, and under a net listing the broker would keep $30,000.
Related terms & state variants
Sources
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Last verified: 2026-10-23