What type of listing allows the seller to keep a certain amount while the agent earns the remainder as commission?

The concept of a net listing revolves around the seller establishing a minimum price they are willing to accept for their property. Any amount above this predetermined price becomes the agent's commission. This arrangement incentivizes the agent to sell the property for as high a price as possible, as their earnings are directly tied to the sale price exceeding the seller's set threshold.

Net listings can sometimes lead to disputes regarding the agreed-upon minimum, especially if there are misunderstandings about what constitutes the commissionable amount. Regulations concerning net listings vary by state, and in some jurisdictions, they are not permitted, as they can pose ethical concerns related to commission-based incentives.

Understanding net listings is essential for real estate professionals, as it involves the balance between the seller's desired outcomes and the agent's goals, impacting negotiations and overall transaction strategy.