 

{"id":305584,"date":"2026-02-26T00:37:52","date_gmt":"2026-02-26T05:37:52","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=305584"},"modified":"2026-02-26T00:38:04","modified_gmt":"2026-02-26T05:38:04","slug":"net-listing-agreement","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/","title":{"rendered":"Net Listing: A Clever Trap for Home Sellers"},"content":{"rendered":"\n<p class=\"highlight\" class=\"has-text-align-left margin-top-28 has-black-color has-text-color\">In October 2024, <a   href=\"https:\/\/www.houzeo.com\/housing-market\" target=\"_blank\" rel=\"noreferrer noopener\">27.8%<\/a> of sellers sold their homes for a valuation that was more than the listing price. Nevertheless, imagine you don&#8217;t know your home&#8217;s worth and your agent deliberately undervalues it.<\/p>\n\n\n\n<p class=\"has-text-align-left has-black-color has-text-color\">Shocking as it may seem, this is exactly what a net listing agreement does. It traps you in an agreement wherein even your agent doesn&#8217;t prioritize your benefit. Needless to say, net listing is illegal in <a   href=\"https:\/\/worldpopulationreview.com\/state-rankings\/net-listing-legality-by-state\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">47 states + DC<\/a>!<\/p>\n\n\n\t<div style=\"display: block ;\" class=\"home-page-quick-listing-wrapper  content-ql-new-ui \" main-title=\"Avoid the Trap, Keep Your Profits! \ud83d\udcb2\" list-title=\"List FSBO on MLS\" list-item-1=\"Save thousands in closing costs\" list-item-2=\"100% online platform\" list-item-3=\"5-star customer service\" ql-button=\"\" minimize=\"true\" sidebar=\"\" contact-title=\"\" contact-content=\"\" siteurl_qlb=\"https:\/\/www.houzeo.com\" cash-ql=\"false\"><\/div>\n\t<script>\t\t\n\n\t\tdocument.addEventListener(\"DOMContentLoaded\", function () {\n\t\t\tconst isMobile = window.screen.width <= 768;\n\n\t\t\t\/\/ Global flags to prevent multiple loads\n\t\t\twindow.quickListingCssLoaded = window.quickListingCssLoaded || false;\n\t\t\twindow.quickListingJsLoaded = window.quickListingJsLoaded || false;\n\n\t\t\tconst cssURL = 'https:\/\/www.houzeo.com\/css\/quick-listing-block-v3.css?v=9.8';\n\t\t\tconst jsURL  = 'https:\/\/www.houzeo.com\/js\/quick-listing-block-v3.js?v=9.8';\n\n\t\t\t\/\/ \u2705 Load CSS immediately on mobile only\n\t\t\tif (isMobile && !window.quickListingCssLoaded) {\n\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\tloadCSS(cssURL);\n\t\t\t}\n\n\t\t\t\/\/ \u2705 Define JS loader (and CSS for desktop)\n\t\t\twindow.quickListingJsLoadfn = function () {\n\t\t\t\tif (!window.quickListingJsLoaded) {\n\t\t\t\t\twindow.quickListingJsLoaded = true;\n\n\t\t\t\t\t\/\/ On desktop: load CSS here (lazy), since it wasn't loaded initially\n\t\t\t\t\tif (!isMobile && !window.quickListingCssLoaded) {\n\t\t\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\t\t\tloadCSS(cssURL);\n\t\t\t\t\t}\n\n\t\t\t\t\tloadScript(jsURL);\n\n\t\t\t\t\t\/\/ Remove listener after load\n\t\t\t\t\tdocument.removeEventListener(isMobile ? 'touchstart' : 'mousemove', window.quickListingJsLoadfn);\n\t\t\t\t}\n\t\t\t};\n\n\t\t\t\/\/ \u2705 Add the correct event listener\n\t\t\tconst quickListingEvents = isMobile ? ['touchstart'] : ['mousemove', 'scroll'];\n\n\t\t\tquickListingEvents.forEach((eventName) => {\n\t\t\t\tdocument.addEventListener(eventName, window.quickListingJsLoadfn, {\n\t\t\t\t\tpassive: true,\n\t\t\t\t\tonce: true,\n\t\t\t\t});\n\t\t\t});\n\t\t\t\n\n\t\t\t\/\/ \u2705 Helpers\n\t\t\tfunction loadCSS(href) {\n\t\t\t\tconst link = document.createElement('link');\n\t\t\t\tlink.rel = 'stylesheet';\n\t\t\t\tlink.href = href;\n\t\t\t\tdocument.head.appendChild(link);\n\t\t\t}\n\n\t\t\tfunction loadScript(src) {\n\t\t\t\tconst script = document.createElement('script');\n\t\t\t\tscript.src = src;\n\t\t\t\tscript.async = true;\n\t\t\t\tdocument.head.appendChild(script);\n\t\t\t}\n\t\t});\n\t<\/script>\n\t\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"net-listing-definition\"><strong>What Is a Net Listing?<\/strong><\/h2>\n\n\n\n<p>A net listing agreement is a deal where a seller and an agent fix the home&#8217;s listing price or the &#8220;net price&#8221;. When you sell your house, you receive only this net price. Any amount earned above this price goes to your agent as their fee.<\/p>\n\n\n\n<p>It is technically right to think that opting for a net listing secures a preset amount you expect to earn from the sale. Nevertheless, you should be weary of the immediate trap such agreements can catch you in. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\" id=\"the-trap-of-a-net-listing\"><img decoding=\"async\" loading=\"lazy\" width=\"840px\" height=\"450px\" src=\"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-2-1024x576.webp\" alt=\"A seller in the trap of net listing.\" class=\"wp-image-634541\" title=\"An agent trapped in a net listing agreement.\" srcset=\"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-2-1024x576.webp 1024w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-2-300x169.webp 300w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-2-768x432.webp 768w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-2-1536x864.webp 1536w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-2.webp 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"net-listings\"><strong>The Trap: Agent Before Client<\/strong><\/h2>\n\n\n\n<p>If you choose net listing, you walk into these major traps:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You are limited to one agent who is prone to manipulate the process of <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-sell-a-house-by-owner\/\" target=\"_blank\" rel=\"noreferrer noopener\">selling your house<\/a>.<\/li>\n\n\n\n<li>Your agent will try to fix a net price that is below your home&#8217;s <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-fair-market-value-and-how-to-find-it\/\" target=\"_blank\" rel=\"noreferrer noopener\">Fair Market Value (FMV)<\/a>.<\/li>\n\n\n\n<li>This agent will then market the house and overprice it.<\/li>\n\n\n\n<li>A valuation above the home&#8217;s FMV will either fool the buyers to pay more or discourage them from purchasing the house.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-houzeo-grey-text blue-box-content-list\"><strong>\u26a0\ufe0f <\/strong>Beware of your agent undervaluing your home! Use <a   href=\"https:\/\/www.houzeo.com\/how-much-is-my-house-worth\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo&#8217;s Home Worth Calculator<\/a> to get an accurate estimate today. <\/div>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"net-listing-agreement-example\"><strong>Understanding Net Listing: Example<\/strong><\/h3>\n\n\n\n<p>Picture you opt for a net listing and agree upon a net price of $300,000. Here&#8217;s how the proceeds are distributed when it is sold for more than the net price:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Type of Listing<\/strong><\/td><td><strong>Selling Price<\/strong><\/td><td><strong>Your Earning<\/strong><\/td><td><strong>Agent&#8217;s Earning<\/strong><\/td><\/tr><tr><td>Net listing<\/td><td>$400,000<\/td><td>$300,000<\/td><td>$100,000<\/td><\/tr><tr><td>Other types of listing<\/td><td>$400,000<\/td><td>$376,000<\/td><td>$24,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Net listings guarantee the agent a larger share when your home sells for more, as they keep everything above the agreed price. Other listing types, in contrast, ensure your earnings increase with a hike in the selling price, leaving less to the agent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"net-listing-meaning\"><strong>Why Is Net Listing a Violation of Fiduciary Duties<\/strong>?<\/h3>\n\n\n\n<p>Real estate brokers have a legal obligation to place their client&#8217;s interests above their own. However, net listings create a conflict of interest. This is because it rewards agents based on how much more the property sells for beyond the agreed price.<\/p>\n\n\n\n<p>Net listings benefit agents disproportionately. The buyer pays more and the seller loses profit, undermining the agent&#8217;s obligation to secure the best possible outcome for their client. This is how a net listing violates the core principles of fiduciary duty.<\/p>\n\n\n\n<div class=\"wp-block-houzeo-grey-text blue-box-content-list\"><strong>\u00bb <\/strong>The <strong>National Association of Realtors\u00ae (NAR)<\/strong> has elaborated on the basic principles of Realtors&#8217; <a   href=\"https:\/\/www.nar.realtor\/sites\/default\/files\/handouts-and-brochures\/2014\/nar-fiduciary-duty-032213.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Fiduciary Duties<\/a>. These are obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care and diligence.<\/div>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"pros-and-cons-of-a-net-listing\"><strong>What Are the Pros and Cons of Net Listing?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"pros-of-net-listings\">\u2705 <strong>Pros<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Guaranteed Net Price:<\/strong> You receive the promised net price. If the deal closes at an amount less than the net price, your agent will make up for your loss.<\/li>\n\n\n\n<li><strong>Agent Determination: <\/strong>The agent has the motivation to use aggressive marketing and negotiation strategies to sell your house. After all, their earning depends upon your <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-price-your-home-for-sale\/\" target=\"_blank\" rel=\"noreferrer noopener\">home&#8217;s sale price<\/a>.<\/li>\n\n\n\n<li><strong>Quick Sale:<\/strong> The time-bound nature of this agreement means the sooner an agent closes a deal, the faster they get paid. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"cons-of-net-listings\"><strong>\u274c Cons<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Limited Agency:<\/strong> You cannot consult multiple agents to sell your house. Your agent has the exclusive right to get you buyers.<\/li>\n\n\n\n<li><strong>Conflict of Interest:<\/strong> Your agent might prioritize a higher commission and not your best interest.<\/li>\n\n\n\n<li><strong>Legal Concerns:<\/strong> It is illegal in 47 states. The 3 states where it is legal have strict laws to ensure that the deal is in the seller&#8217;s best interest.<\/li>\n\n\n\n<li><strong>Lack of Realtors:<\/strong> Realtors registered with NAR cannot do net listings. <\/li>\n\n\n\n<li><strong>Time-Bound Contract:<\/strong> Net listings can only be terminated after the contract expires or the property has been sold.<\/li>\n\n\n\n<li><strong>Less Exposure:<\/strong> Net listings don&#8217;t make it to the <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-mls-in-real-estate\/\" target=\"_blank\" rel=\"noreferrer noopener\">Multiple Listing System (MLS)<\/a> and hence get less exposure. Most of these homes sell at or below the listing price.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-houzeo-grey-text blue-box-content-list underlined\"><strong><strong>\ud83d\udca1 <\/strong><\/strong>Homes listed on the MLS sell for <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-list-on-the-mls\/#:~:text=Homes%20listed%20on%20MLS%20sold%20for%2017.5%25%20more%20than%20homes%20not%20on%20MLS.\" target=\"_blank\" rel=\"noreferrer noopener\">17.5%<\/a> more than the listing price. Most Realtors and sellers consider MLS listings crucial to get greater exposure and multiple offers on your home.<\/div>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"what-are-net-listings-preventive-measures\"><strong>What Are the Preventive Measures<\/strong>?<\/h2>\n\n\n\n<p>Here are some preventive measures to protect sellers from the trap of net listing agreements: <\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"is-net-listing-legal-in-california\"><strong>1. Legal Prohibitions on Net Listings<\/strong><\/h3>\n\n\n\n<p>Given the exploitative tactics of agents, real estate net listings are illegal in 47 states + DC. Nevertheless, they are legal in 3 states. However, there too, net listings are subject to heavy regulations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Florida:<\/strong> A qualified <a   href=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\/florida\" target=\"_blank\" rel=\"noreferrer noopener\">Florida real estate attorney<\/a> must represent you. The agreement is legally binding only if an attorney is involved.<\/li>\n\n\n\n<li><strong>Texas:<\/strong> An agent can involve you in a net listing agreement only if you have in-depth knowledge of your home&#8217;s market value. It also mandates that you choose a net listing only if it is the best available option.<\/li>\n\n\n\n<li><strong>California:<\/strong> Your agent can close the deal only if you agree upon the selling price of your house. Furthermore, agents can suggest net listing only if a legal or real estate advisor represents you or if you own a <a   href=\"https:\/\/archives.hud.gov\/offices\/hsg\/sfh\/ref\/sfhp1-17.cfm#:~:text=A.-,Unique%20properties,-%2D%20Sometimes%20a%20unique\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">unique property<\/a>. <\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\" id=\"are-net-listings-legal-in-florida\"><img decoding=\"async\" loading=\"lazy\" width=\"840px\" height=\"450px\" data-id=\"633490\" src=\"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-1024x576.webp\" alt=\"\" class=\"wp-image-633490\" title=\"Map of states where net listing is legal\" srcset=\"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-1024x576.webp 1024w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-300x169.webp 300w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-768x432.webp 768w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-1536x864.webp 1536w, https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing.webp 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">                                              <\/figcaption><\/figure>\n<\/figure>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"listing-agent-meaning\"><strong>2. The NAR Ban<\/strong><\/h3>\n\n\n\n<p>The National Association of REALTORS\u00ae has banned all its members from making net listings, intending to discourage sellers&#8217; exploitation. Moreover, net listings are banned from the MLS. This means your property gets less exposure and fewer offers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"what-is-the-listing\"><strong>Alternatives to a Net Listing Agreement<\/strong><\/h2>\n\n\n\n<p>A net listing agreement should always be the last option for you to choose from. Here are some other <a   href=\"https:\/\/www.houzeo.com\/blog\/listing-agreement\/#Types-of-Listing-Agreements\" target=\"_blank\" rel=\"noreferrer noopener\">types of listing agreements<\/a> you can consider:<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<figure id=\"listing-listing-listing\" class=\"wp-block-table\"><table><tbody><tr><td><strong>Type of Listing<\/strong><\/td><td><strong>Key Features<\/strong><\/td><\/tr><tr><td><a   href=\"https:\/\/www.houzeo.com\/blog\/exclusive-right-to-sell\/\" target=\"_blank\" rel=\"noreferrer noopener\">Exclusive Right-to-Sell Listing Agreement<\/a><\/td><td>1. A single agent has the sole right to list, market and sell your property via the MLS.<br>2. You pay a commission to the agent even if you find the buyer yourself.<\/td><\/tr><tr><td><a   href=\"https:\/\/www.houzeo.com\/blog\/open-listing-agreement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Open Listing Agreement<\/a><\/td><td>1. Multiple agents can list, market and sell your property via the MLS.<br>2. You pay a commission to the agent who brings you the buyer.<br>3. You don&#8217;t pay a commission if you find the buyer yourself.<\/td><\/tr><tr><td><a   href=\"https:\/\/www.houzeo.com\/blog\/exclusive-agency-listing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Exclusive Agency Listing Agreement<\/a><\/td><td>1. A single agent has the sole right to list, market and sell your property via the MLS.<br>2. You don\u2019t pay a commission to the agent if you find the buyer yourself.<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"net-real-estate-listing\"><strong>Should You Use a Net Listing to Sell Your Home?<\/strong><\/h2>\n\n\n\n<p>Ideally, the answer is no. Net listings may be legal where you live, but they tend to push your best interests aside. Moreover, the time-bound and exclusive nature of the agreement makes net listings even more undesirable.<\/p>\n\n\n\n<p>But why go through the hassle, when you could simply <a   href=\"https:\/\/www.houzeo.com\/flat-fee-mls\" target=\"_blank\" rel=\"noreferrer noopener\">list on the MLS for a Flat Fee<\/a>? Not only do you retain full control over the sale, but all of your profits too! Houzeo helps you get on the MLS within 48 hours &#8211; don&#8217;t keep buyers waiting.<\/p>\n\n\n\n<p><\/p>\n\n\n\t<div style=\"display: block ;\" class=\"home-page-quick-listing-wrapper  content-ql-new-ui \" main-title=\"Avoid the Trap \ud83d\udd78\ufe0f Keep Your Profits!\" list-title=\"List FSBO on MLS\" list-item-1=\"Save thousands on commissions\" list-item-2=\"100% online platform\" list-item-3=\"5-star customer service\" ql-button=\"\" minimize=\"true\" sidebar=\"\" contact-title=\"\" contact-content=\"\" siteurl_qlb=\"https:\/\/www.houzeo.com\" cash-ql=\"false\"><\/div>\n\t<script>\t\t\n\n\t\tdocument.addEventListener(\"DOMContentLoaded\", function () {\n\t\t\tconst isMobile = window.screen.width <= 768;\n\n\t\t\t\/\/ Global flags to prevent multiple loads\n\t\t\twindow.quickListingCssLoaded = window.quickListingCssLoaded || false;\n\t\t\twindow.quickListingJsLoaded = window.quickListingJsLoaded || false;\n\n\t\t\tconst cssURL = 'https:\/\/www.houzeo.com\/css\/quick-listing-block-v3.css?v=9.8';\n\t\t\tconst jsURL  = 'https:\/\/www.houzeo.com\/js\/quick-listing-block-v3.js?v=9.8';\n\n\t\t\t\/\/ \u2705 Load CSS immediately on mobile only\n\t\t\tif (isMobile && !window.quickListingCssLoaded) {\n\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\tloadCSS(cssURL);\n\t\t\t}\n\n\t\t\t\/\/ \u2705 Define JS loader (and CSS for desktop)\n\t\t\twindow.quickListingJsLoadfn = function () {\n\t\t\t\tif (!window.quickListingJsLoaded) {\n\t\t\t\t\twindow.quickListingJsLoaded = true;\n\n\t\t\t\t\t\/\/ On desktop: load CSS here (lazy), since it wasn't loaded initially\n\t\t\t\t\tif (!isMobile && !window.quickListingCssLoaded) {\n\t\t\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\t\t\tloadCSS(cssURL);\n\t\t\t\t\t}\n\n\t\t\t\t\tloadScript(jsURL);\n\n\t\t\t\t\t\/\/ Remove listener after load\n\t\t\t\t\tdocument.removeEventListener(isMobile ? 'touchstart' : 'mousemove', window.quickListingJsLoadfn);\n\t\t\t\t}\n\t\t\t};\n\n\t\t\t\/\/ \u2705 Add the correct event listener\n\t\t\tconst quickListingEvents = isMobile ? ['touchstart'] : ['mousemove', 'scroll'];\n\n\t\t\tquickListingEvents.forEach((eventName) => {\n\t\t\t\tdocument.addEventListener(eventName, window.quickListingJsLoadfn, {\n\t\t\t\t\tpassive: true,\n\t\t\t\t\tonce: true,\n\t\t\t\t});\n\t\t\t});\n\t\t\t\n\n\t\t\t\/\/ \u2705 Helpers\n\t\t\tfunction loadCSS(href) {\n\t\t\t\tconst link = document.createElement('link');\n\t\t\t\tlink.rel = 'stylesheet';\n\t\t\t\tlink.href = href;\n\t\t\t\tdocument.head.appendChild(link);\n\t\t\t}\n\n\t\t\tfunction loadScript(src) {\n\t\t\t\tconst script = document.createElement('script');\n\t\t\t\tscript.src = src;\n\t\t\t\tscript.async = true;\n\t\t\t\tdocument.head.appendChild(script);\n\t\t\t}\n\t\t});\n\t<\/script>\n\t\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"net-listing-definition-real-estate\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhat is a net listing in real estate?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>A <a href=\"#net-listing-definition\">net listing agreement<\/a> is a deal between a seller and an agent which fixes the base amount to sell a house. The seller receives this amount on the sale of a home. Anything above this price becomes the agent's earning.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhy is net listing illegal?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Net listing agreements bring up a conflict of interest between the agent and the seller. Agents deliberately undervalue the property to pocket the profits. This violates the <a href=\"#net-listing-meaning\">Fiduciary Duties<\/a>, making the practice unethical.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhere is net listing legal?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Net listing is <a href=\"#are-net-listings-legal-in-florida\">legal in just 3 states<\/a>. They are Florida, Texas, and California. This is done to protect the interests of sellers. Furthermore, in the three states where net listing is legal, it is regulated strictly.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhat are the alternatives to a net listing agreement?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>There are 3 more <a href=\"https:\/\/www.houzeo.com\/blog\/listing-agreement\/#:~:text=the%20listing%20agreement.-,Types%20of%20Listing%20Agreements,-There%20are%204\" target=\"_blank\">types of listing agreements<\/a>. They are - open listing, exclusive agency listing and exclusive right to sell listing agreements.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">Net Listings are contracts between you and an agent, where you set a base price of your property. Any value exceeding it goes to the...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">7 mins read<\/span><span class=\"date\">Feb 26, 2026<\/span><\/div>","protected":false},"author":218,"featured_media":634542,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[36058,42360,32612,42358,42359,32613],"class_list":["post-305584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","tag-define-net-listing","tag-net-listing-real-estate","tag-net-listing-real-estate-definition","tag-what-is-a-net-listing","tag-what-is-a-net-listing-in-real-estate","tag-what-is-net-listing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Net Listing Agreement: A Clever Trap for Home Sellers<\/title>\n<meta name=\"description\" content=\"Net listing is a high-risk real estate listing for sellers. Agents will always prioritize their profits over the seller&#039;s best interest.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Net Listing Agreement: A Clever Trap for Home Sellers\" \/>\n<meta property=\"og:description\" content=\"Net listing is a high-risk real estate listing for sellers. Agents will always prioritize their profits over the seller&#039;s best interest.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/\" \/>\n<meta property=\"og:site_name\" content=\"Houzeo Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-26T05:37:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-26T05:38:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-3.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Bhagyesh Behere\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bhagyesh Behere\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Net Listing Agreement: A Clever Trap for Home Sellers","description":"Net listing is a high-risk real estate listing for sellers. Agents will always prioritize their profits over the seller's best interest.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/","og_locale":"en_US","og_type":"article","og_title":"Net Listing Agreement: A Clever Trap for Home Sellers","og_description":"Net listing is a high-risk real estate listing for sellers. Agents will always prioritize their profits over the seller's best interest.","og_url":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/","og_site_name":"Houzeo Blog","article_published_time":"2026-02-26T05:37:52+00:00","article_modified_time":"2026-02-26T05:38:04+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-3.webp","type":"image\/webp"}],"author":"Bhagyesh Behere","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Bhagyesh Behere","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/","url":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/","name":"Net Listing Agreement: A Clever Trap for Home Sellers","isPartOf":{"@id":"https:\/\/www.houzeo.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/#primaryimage"},"image":{"@id":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/#primaryimage"},"thumbnailUrl":"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-3.webp","datePublished":"2026-02-26T05:37:52+00:00","dateModified":"2026-02-26T05:38:04+00:00","description":"Net listing is a high-risk real estate listing for sellers. Agents will always prioritize their profits over the seller's best interest.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.houzeo.com\/blog\/net-listing-agreement\/#primaryimage","url":"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-3.webp","contentUrl":"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/11\/Net-Listing-3.webp","width":1920,"height":1080,"caption":"A seller trapped in a net listing agreement."},{"@type":"WebSite","@id":"https:\/\/www.houzeo.com\/blog\/#website","url":"https:\/\/www.houzeo.com\/blog\/","name":"Houzeo Blog","description":"","publisher":{"@id":"https:\/\/www.houzeo.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.houzeo.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.houzeo.com\/blog\/#organization","name":"Houzeo","url":"https:\/\/www.houzeo.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.houzeo.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2020\/07\/new-logo.png","contentUrl":"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2020\/07\/new-logo.png","width":190,"height":55,"caption":"Houzeo"},"image":{"@id":"https:\/\/www.houzeo.com\/blog\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/posts\/305584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/users\/218"}],"replies":[{"embeddable":true,"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/comments?post=305584"}],"version-history":[{"count":92,"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/posts\/305584\/revisions"}],"predecessor-version":[{"id":902177,"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/posts\/305584\/revisions\/902177"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/media\/634542"}],"wp:attachment":[{"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/media?parent=305584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/categories?post=305584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.houzeo.com\/blog\/wp-json\/wp\/v2\/tags?post=305584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}