One type of agreement is known as a net listing agreement. A net listing is a contract between the seller and real estate agent in which the agent agrees to sell the property for a set commission, regardless of the sales price.

With a real estate net listing agreement, the agent gets to keep the surplus between the actual sales price (purchase price) and the client’s pre-specified price.

Net listing agreements are only legal in some U.S. states.

What is an example of a net listing?

As an example of how a net listing works, let’s assume the seller wants his house to be sold for no less than $100,000 US Dollars (USD). That would be the net price, and the broker in turn agrees to sell the house and take as commission anything in excess of the net that is accomplished by the eventual sale price.

Watch as Gary explains in the video below:

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