Dick Greenberg, Northern Colorado Residential Real Estate (New Paradigm Partners LLC)

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Rainmaker
609,686
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

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 itIt 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

Apr 11, 2017 10:20 AM
Ambassador
965,130
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, WV - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

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?

Apr 11, 2017 11:43 AM
Rainmaker
5,571,310
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

it's illegal in Massachusetts....it's very bad.... that's from when God was a child.... 

Apr 11, 2017 10:17 AM
Rainmaker
1,213,561
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

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!

Apr 11, 2017 12:45 PM
Rainmaker
4,053,919
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Yes it is and they are actually not legal in many states (like mine). See what Mike & Eve Alexander said. They explained it well.

Apr 11, 2017 12:24 PM
Rainmaker
818,217
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

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.

Apr 11, 2017 12:09 PM
Rainmaker
6,540,549
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Find a better agent.

Apr 11, 2017 12:02 PM
Ambassador
2,952,156
Liz and Bill Spear
RE/MAX Alliance 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Alliance Cincinnati & Dayton suburbs

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.

Apr 11, 2017 11:50 AM
Rainmaker
1,380,183
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

Apr 11, 2017 11:30 AM
Rainmaker
843,696
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

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.

Apr 11, 2017 11:29 AM
Ambassador
2,563,831
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   Unless you have a savvy Seller, don't do it, see a lawyer, etc. 

Apr 11, 2017 11:26 AM
Rainer
117,085
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

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!!

Apr 11, 2017 11:08 AM
Rainmaker
5,524,500
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Dick,

No advantage to seller.

Apr 11, 2017 10:53 AM
Ambassador
4,557,465
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I see absolutely no advantage to the seller at all

Apr 11, 2017 10:42 AM
Rainmaker
1,716,018
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

We cannot take them at our company under any circumstances & I'm in IL.

Apr 11, 2017 10:42 AM
Rainmaker
1,397,958
Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Illegal in NY as well!

All I can ask is why!!!!!!!!!!!!!!!!!!!

Apr 11, 2017 10:39 AM
Rainmaker
3,069,934
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

I know of no benefit to the Seller, and believe, as Candice A. Donofrio mentioned, that it is illegal in AZ...

Apr 12, 2017 05:16 AM
Ambassador
4,200,509
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I hadn't heard of them either!  Thanks, Mike & Eve Alexander, for the information!

Apr 11, 2017 09:01 PM
Ambassador
3,723,311
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I've never heard of it Dick Greenberg but I am interested by the comments posted...

Apr 11, 2017 08:05 PM
Rainmaker
808,847
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I have never seen or heard of these done in Idaho.  Was there a particular reason this agent recommended it? -Kasey

Apr 11, 2017 07:20 PM
Rainmaker
144,616
Julie Larson Realtor® Sarasota FL 941-882-0322
PalmerHouse Properties Florida - 941-882-0322 | Serving Sarasota, Manatee & Charlotte Counties - Sarasota, FL
When you're thinking of moving...ThinkSuncoast.com

Even though they are legal in Florida, I've never heard of anyone using them.

Apr 11, 2017 07:16 PM
Rainmaker
142,696
Diana White-Pettis
Bennett Realty Solutions - Upper Marlboro, MD
GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale

It's illegal in many states and a dangerous type of listing.  I would avoid it.

Apr 11, 2017 06:28 PM
Ambassador
5,357,189
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Those are very illegal in our state.

Apr 11, 2017 05:57 PM
Rainmaker
4,156,948
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

My advice is "NO, NO, NO! And then again NO!

Apr 11, 2017 03:11 PM
Rainer
313,588
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Sounds like they are scamming the elderly relative. If they need a recommendation please have them call me. Net listing is an awful idea

Apr 11, 2017 03:10 PM
Rainmaker
393,924
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

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.  

Apr 11, 2017 03:01 PM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

We don't have that in Oklahoma.

Apr 11, 2017 02:07 PM
Rainmaker
1,149,009
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I have heard agents charge buyers a flat fee for home showing and ended up losing their license.

Apr 11, 2017 02:04 PM
Rainmaker
1,027,385
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I don't believe it is legal in Virginia. 

Apr 11, 2017 01:53 PM
Rainmaker
887,633
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

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?

Apr 11, 2017 01:50 PM
Rainmaker
3,321,246
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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

Apr 11, 2017 01:31 PM
Ambassador
3,036,887
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

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!!!!

Apr 11, 2017 01:21 PM
Rainmaker
1,715,027
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Run from that agent!  

Apr 11, 2017 01:03 PM
Rainmaker
2,634,031
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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

Apr 11, 2017 12:39 PM
Rainmaker
1,456,727
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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!!

Apr 11, 2017 12:35 PM
Rainmaker
2,020,150
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Not Legal in many states

Apr 11, 2017 12:30 PM
Rainmaker
598,659
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

WE learn something new every day. thanks for sharing!

Apr 12, 2017 07:31 AM
Rainmaker
1,635,442
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Run away; with so many over listing offers, this agent sounds like a carpetbagger. We NEVER offer Net Listings!!!!

Apr 12, 2017 06:20 AM
Ambassador
1,616,354
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

just another way to sell a home

Apr 12, 2017 05:51 AM
Rainmaker
882,261
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

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.

Apr 12, 2017 05:45 AM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I think these are illegal in Florida.

Apr 12, 2017 04:16 AM
Rainmaker
1,855,361
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

They are illegal here, and no, there is no benefit to the seller. 

Apr 12, 2017 03:08 AM
Rainmaker
1,514,105
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

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)? 

Apr 11, 2017 11:59 PM
Ambassador
4,312,753
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Dick Greenberg - Net listing? I do not think it is legal here in MA, at least.

Apr 11, 2017 10:23 PM
Rainer
58,411
Annie Adjchavanich
Secret HQ, Inc - Los Angeles, CA
CRE LA, Orange Co, SFV, South Bay, Inland Empire

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.

Apr 11, 2017 07:03 PM