What is a net listing?

A net listing is defined as a type of listing agreement in which the seller establishes a minimum acceptable price for the sale of their property. Essentially, the seller specifies a "net" amount they wish to receive from the sale after all expenses and fees, including the broker’s commission, have been deducted. This means that any amount received above that minimum price becomes the commission for the broker.

This arrangement allows sellers to be more in control of their desired outcome from the sale, ensuring that they do not receive less than their established goal. It's important to note that net listings can create potential conflicts of interest, as brokers may be incentivized to sell the property for a higher price to increase their commission, which can lead to a misalignment of the seller's interests with those of the broker.

The other options do not accurately describe a net listing. The first option relates to loan processes rather than property sales. The third option discusses commission negotiations but does not focus on the seller’s minimum price, and the last option is unrelated to listings or property sale agreements. Thus, the fundamental definition revolves around the seller’s control over the minimum price in a net listing arrangement.