613,494
Net listings are not legal in many states. In Florida Net listings are legal(last I heard) but are not encouraged.
Only a greedy agent would recommend it and only a naive seller would agree to it. It only benefits the agent.
That means that the seller is agreeing to receive a flat fee amount, and the listing agent would keep the difference. The listing agent could sell the property for much more and end up with more $$ than the seller.
There is NO BENEFIT TO THE SELLER...
Eve
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Inna Ivchenko
Encino, CA
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Barbara Todaro
Franklin, MA
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Dick Greenberg
Fort Collins, CO
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Lyn Sims
Schaumburg, IL
1,076,551
Haven't seen this here in CA or elsewhere. With the above answers I'm curious under what circumstances this type of listing would offer a benefit, assuming it would have to in certain scenarios to remain legal?
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Inna Ivchenko
Encino, CA
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Raj Taj
Lake Bluff, IL
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Pete Xavier
Pacific Palisades, CA
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Dick Greenberg
Fort Collins, CO
5,583,278
it's illegal in Massachusetts....it's very bad.... that's from when God was a child....
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Nina Hollander, Broker
Charlotte, NC
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Eve Alexander
Tampa, FL
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Dick Greenberg
Fort Collins, CO
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Lyn Sims
Schaumburg, IL
1,543,672
18 years licensed and 35 in the industry all in CA.
Never heard of them, never seen one so I'll guess baaaaad, very bad.
Where in CA? Let me get you a better Realtor for them. I have trusted peeps all over CA!
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Dick Greenberg
Fort Collins, CO
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Thomas J. Nelson, REAL...
La Jolla, CA
5,104,931
Yes it is and they are actually not legal in many states (like mine). See what Mike & Eve Alexander said. They explained it well.
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Dick Greenberg
Fort Collins, CO
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Pete Xavier
Pacific Palisades, CA
900,128
Well, just so you know - net listings are ILLEGAL in Connecticut. In Florida, they are legal, but strongly discouraged. The practice is prone to abuse by agents.
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Dick Greenberg
Fort Collins, CO
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Nina Hollander, Broker
Charlotte, NC
7,836,134
Find a better agent.
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Dick Greenberg
Fort Collins, CO
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Pete Xavier
Pacific Palisades, CA
3,169,508
Highly discouraged in Ohio. I've never heard of anyone actually doing one, just one of those things we got told about in real estate school.
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Dick Greenberg
Fort Collins, CO
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Nina Hollander, Broker
Charlotte, NC
1,502,998
I can't imagine anyone recommending that in this day and age. I wouldn't recommend it, too many chances for something shady to happen.
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Nina Hollander, Broker
Charlotte, NC
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Dick Greenberg
Fort Collins, CO
953,617
Stick to the tried and true percentage structure, I would tell them. I in effect have done "net listings" as an investor by using a buy option, but never as a Realtor. In representative real estate there is a potential for fraud for that type of listing.
In most states this would be illegal for a brokerage to do this, in the other states, brokerages are not encouraged to offer "net listings". "Investor buy options" act in a similar manner, but it's a different scenario on the whole.
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Nina Hollander, Broker
Charlotte, NC
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Dick Greenberg
Fort Collins, CO
2,684,009
Unless you have a savvy Seller, don't do it, see a lawyer, etc.
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Nina Hollander, Broker
Charlotte, NC
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Dick Greenberg
Fort Collins, CO
117,135
I am a California agent, and this is not something I have ever used, nor have I seen it used. I recommend having an agent run the recent comparalble sales, and come up with a good price for the house and list it. Several areas have seen tremendous increase in price lately with multiple offers, so I would definilty not recommend a NET listing for the San Diego or Riverside areas. The seller should get the proceeds if the sales price ends up higher than the list price. Best of luck!!
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Christine Kankowski No...
Poway, CA
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Dick Greenberg
Fort Collins, CO
5,772,575
Dick,
No advantage to seller.
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Nina Hollander, Broker
Charlotte, NC
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Dick Greenberg
Fort Collins, CO
5,049,158
I see absolutely no advantage to the seller at all
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Nina Hollander, Broker
Charlotte, NC
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Dick Greenberg
Fort Collins, CO
1,844,291
We cannot take them at our company under any circumstances & I'm in IL.
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Nina Hollander, Broker
Charlotte, NC
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Dick Greenberg
Fort Collins, CO
1,513,143
Illegal in NY as well!
All I can ask is why!!!!!!!!!!!!!!!!!!!
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Nina Hollander, Broker
Charlotte, NC
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Dick Greenberg
Fort Collins, CO
3,071,489
I know of no benefit to the Seller, and believe, as Candice A. Donofrio mentioned, that it is illegal in AZ...
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Candice A. Donofrio
Fort Mohave, AZ
5,230,062
I hadn't heard of them either! Thanks, Mike & Eve Alexander, for the information!
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Dick Greenberg
Fort Collins, CO
4,272,548
I've never heard of it Dick Greenberg but I am interested by the comments posted...
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Dick Greenberg
Fort Collins, CO
809,258
I have never seen or heard of these done in Idaho. Was there a particular reason this agent recommended it? -Kasey
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Dick Greenberg
Fort Collins, CO
151,633
Even though they are legal in Florida, I've never heard of anyone using them.
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Dick Greenberg
Fort Collins, CO
142,796
It's illegal in many states and a dangerous type of listing. I would avoid it.
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Dick Greenberg
Fort Collins, CO
6,393,404
5,216,398
My advice is "NO, NO, NO! And then again NO!
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Dick Greenberg
Fort Collins, CO
417,221
Sounds like they are scamming the elderly relative. If they need a recommendation please have them call me. Net listing is an awful idea
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Dick Greenberg
Fort Collins, CO
400,356
I can't see a net listing being a good choice for the seller and I find it really odd that an agent would suggest it.
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Dick Greenberg
Fort Collins, CO
1,712,676
1,239,901
I have heard agents charge buyers a flat fee for home showing and ended up losing their license.
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Dick Greenberg
Fort Collins, CO
1,027,602
I don't believe it is legal in Virginia.
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Dick Greenberg
Fort Collins, CO
1,052,211
Ew. Just that an agent would recommend that is creepy to me. I don't believe they are legal in Arizona. They shouldn't be legal in any state because they violate fiduciary. How can it be in the seller's best interest if the agent is capping seller's profits and keeping the excess?
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Dick Greenberg
Fort Collins, CO
3,416,038
They are ILLEGAL in NH. and yes they are as bad as to the consumer as it sounds. Tell them to STAY FAR AWAY a the agent makes all the money instead of the seller
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Dick Greenberg
Fort Collins, CO
3,345,091
There is no advantage to the seller. Yes, it is as bad as it sounds. Depending on where in California ... that could be a very lucrative proposition for the agent. Run Forrest ... Run!!!!
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Dick Greenberg
Fort Collins, CO
2,178,603
2,781,173
I understand what people want. Its wheter it can be done that needs lookin into...If the "net" is reasonable, it may work out. If not, waste of time
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Dick Greenberg
Fort Collins, CO
1,466,207
Dick Greenberg None what-so-ever. Net listings are illegal in my State. You want $100,000 for your home. I will sell it for $150,000 and keep everything over $100,000 for my commission. Good deal for you and for me. Right! Illegal here!!
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Dick Greenberg
Fort Collins, CO
2,182,552
599,274
1,725,996
Run away; with so many over listing offers, this agent sounds like a carpetbagger. We NEVER offer Net Listings!!!!
1,617,916
921,504
If all parties are knowledgeable, it is a valid option.
If all parties, which includes real estate agents, are NOT knowledgeable, it is not a valid option.
It is when people 'think' they are knowledgeable and then must find someone to blame that 'as bad as it sounds' happens.
No different than auctions, foreclosures, SS and FSBO. Proceed with caution or you will be looking for someone to blame.
4,800,082
2,436,099
1,622,432
You mean to list for a flat fee? Well, everything is negotiable in this business. You get what you pay for. How much their flat fee(s)?
4,319,419
Dick Greenberg - Net listing? I do not think it is legal here in MA, at least.
58,611
Hi Dick,
I've been teaching CA Real Estate Principles to candidates preparing for the CalBRE State Exam.
Just last Thursday, I just lectured about The Law of Agency and the five different kinds of listings agreements offered in California.
A Net Listing is when a Seller receives predetermined amount and broker receives excess. No other broker authorized.
The other types of listing agreements in CA (first three are the core of listing contracts):
Open Listing
Exclusive Agency Listing
Exclusive Authorization and Right to Sell Listing (Most common)
Option Listing
This comes right out of the Dearborn RE Education textbook "California Real Estate Principles" 8th Edition. P.152.
My opinion is, it's not necessarily in the best interest of your friend's family and you might want to seek other options.