{"id":53213,"date":"2025-01-27T08:42:39","date_gmt":"2025-01-27T16:42:39","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=53213"},"modified":"2025-01-27T08:42:39","modified_gmt":"2025-01-27T16:42:39","slug":"net-listing","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/net-listing\/","title":{"rendered":"What Is a Net Listing When Selling a Home?"},"content":{"rendered":"

If you\u2019re exploring your options for selling a home<\/a>, you might come across a term that raises some eyebrows: net listing. While it may sound like a straightforward approach, a net listing can come with serious risks for you as the seller.<\/p>\n

This guide explains net listing, how it works, and why it\u2019s often discouraged in favor of other, more common listing agreements<\/a>. We\u2019ll also provide examples so you can better understand why net listing is illegal in most states.<\/p>\n

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What is a net listing in real estate?<\/h2>\n

A net listing is a type of real estate agreement where the seller sets a minimum amount they want to receive from the sale of their home. Any amount above this minimum becomes the agent\u2019s commission.<\/p>\n

For example, if you set a net price of $300,000 and your home sells for $350,000, the agent would pocket the additional $50,000 as their fee. While this arrangement might seem appealing for sellers who prioritize simplicity, it can lead to conflicts of interest.<\/p>\n

Since the agent\u2019s earnings depend entirely on the sale price exceeding your net, it could incentivize them to prioritize their profit over your best interests.<\/p>\n

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Net listing agreement examples<\/h2>\n

Here are a couple of scenarios to illustrate how net listings might play out:<\/p>\n