What is a Net Listing?

A net listing is defined as a type of listing agreement in which the seller sets a minimum price they wish to receive from the sale of their property. Any amount received over that set price is then considered the commission for the broker. This means that the broker’s earnings can vary based on the sale price of the property, providing them with an incentive to sell for as high a price as possible while ensuring the seller receives their desired net amount.

This arrangement is unique because it directly ties the broker's commission to the sale price beyond the seller's expectations, allowing for flexible earnings based on market conditions. The implications of this type of listing can be considerable, as it may affect the way brokers approach pricing and marketing strategies.

The other choices describe different types of agreements that do not capture the specific nature and structure of a net listing. The focus on a guaranteed profit or a specific commission rate differentiates net listings from other listing types where commissions and pricing strategies may not have this flexibility.