What distinguishes the "net listing" from other listing types?

The "net listing" is distinguished by the way it structures the commission arrangement between the seller and the broker. In this type of listing, the seller specifies a minimum amount they want to receive from the sale of the property, which is known as the "net" amount. Any proceeds from the sale that exceed this specified amount are retained by the broker as their commission. This arrangement encourages the broker to focus on securing a sale price that significantly surpasses the seller's minimum requirement.

This structure is different from other types of listings, where commission rates are typically based on a fixed percentage of the sale price or a predetermined fee. The net listing incentivizes the broker to negotiate for the highest possible sale price, benefiting both the seller (who receives their desired amount) and the broker (who earns a commission based on the surplus amount).