Net listing
National Real Estate Exam glossary · Contracts
Definition
A listing in which the seller sets a net amount to be received and the broker keeps any sale proceeds above that figure as commission. It creates a conflict of interest and is illegal or discouraged in most jurisdictions.
Net listing in plain English
Normally an agent earns a commission that's a set percentage of the sale price, so the agent and seller both want the highest price. A "net listing" flips that: the seller says "I just want to walk away with $300,000," and the agent keeps everything above that as their pay. The catch is the agent now has a sneaky incentive to lowball the seller or hide better offers, since a lower agreed price means a bigger cut for the agent. Because this pits the agent against the very person they're supposed to protect, most states ban it or strongly discourage it.
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