What defines a net listing in real estate transactions?

A net listing in real estate transactions is characterized by the seller specifying a minimum acceptable sale price for their property. The crucial aspect of this type of listing is that the broker keeps any proceeds from the sale that exceed this minimum price. This means that the broker's commission comes from the additional money received over what the seller deemed acceptable.

This arrangement incentivizes the broker to sell the property for as high a price as possible, as their earnings are directly linked to the amount above the established net price. It’s important to note that net listings are not standard in all markets and may be subject to specific regulations. In contrast to other listing types where the broker's commission is fixed or is a percentage of the sale price, net listings create a different dynamic, focusing on net proceeds after the seller's minimum is met.