In a net listing, what does the seller receive?

In a net listing, the seller receives all proceeds above a set amount. This type of listing agreement specifies a minimum price that the seller wants to receive from the sale of their property. Any amount gained from the sale that exceeds this preset figure goes to the real estate agent as their commission.

For example, if the seller establishes a net of $300,000 and the property sells for $350,000, the agent would receive $50,000 as commission, while the seller would keep their guaranteed $300,000. This arrangement can incentivize the agent to maximize the selling price since their earnings directly depend on the amount exceeding the seller’s set minimum.

The other choices don’t accurately reflect the nature of a net listing. The seller does not receive only the commission, the full sale price, or nothing from the sale, as indicated by those alternatives. They benefit directly from any excess received beyond the established net amount.