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Rainmaker
3,052,318
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Because the seller loses out. they can say they want 200k and the agent keeps everything above, they may not know the home is worth 300k, may have been told the wrong answer or not told at all.  

Oct 15, 2018 02:49 PM
Rainmaker
5,121,933
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

net listings should be illegal everywhere.....  net listings are to the advantage of the agent and only the agent.... the seller could say they want a net of X amount of dollars and the agent knows it's worth more a significant amount of money.... the seller only gets what the seller wants as a net and the agent takes the rest of it.... agent wins....walks away with the sellers' equity...

Oct 15, 2018 02:16 PM
Rainmaker
745,310
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

They are illegal in Connecticut. Too much room for abuse.

Oct 15, 2018 02:58 PM
Rainmaker
2,485,500
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If done correctly it works for all. The temptation to do incorrectly ruins it

Oct 15, 2018 02:04 PM
Rainmaker
3,428,237
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Real estate is local. The laws vary by state.

Oct 15, 2018 01:52 PM
Rainmaker
2,826,691
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Real estate is local and so are the laws.  Read up on your state. 

Oct 15, 2018 04:40 PM
Rainmaker
4,574,652
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Study your books and find out if it applies to your state. A

Oct 15, 2018 03:02 PM
Ambassador
3,445,684
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Because they're lawsuits waiting to happen?

Oct 15, 2018 04:15 PM
Rainmaker
1,114,338
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

It's the law, check your state laws and rules governing this topic. 

Oct 15, 2018 02:57 PM
Rainmaker
1,258,875
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

I have no idea.

Oct 15, 2018 09:57 PM
Rainmaker
1,698,349
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Great answers to your question here. 

Oct 15, 2018 09:40 PM
Rainmaker
544,276
The Villages Realty
The Villages Realty - San Jose, CA
"Our Performance Will Move You!"

They're legal in CA and the only time I've heard it used was from another broker on a strange ranch property that was too hard to comp.  I also believe they are used in the selling of timeshares.

Oct 15, 2018 09:29 PM
Ambassador
2,364,110
Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    Real Estate Brokers could take serious financial advantage of unscrupulous sellers, especially the elderly.   That's why it is illegal in Florida.

Oct 15, 2018 05:05 PM
Ambassador
4,372,469
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Does it matter why, they just are illegal everywhere.

Oct 15, 2018 04:16 PM
Rainmaker
1,035,703
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In our state it is LEGAL.

Net listings are legal in California only if the commission amount is disclosed to the seller before she becomes committed to the sale.A type of listing in which the commission is any amount received from the sale over and above the "net" required by the seller."

Oct 16, 2018 07:07 AM
Rainmaker
781,093
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I am PRO-Net Listing.

I am aware most agents are not prepared to engage real estate at this level and such transactions should be left to the PROS.

There are other benefits to a Net Listing that has little to do with price that a seller could view as beneficial.

The benefit of Net Listing is the ability to 'skip a step' and avoid the additional cost of directly acquiring or assigning the purchase. An educated seller knows exactly what to expect from the transaction and the experienced professional makes it easy.

Of course, in a dumb it down society, it has proven beneficial to limit the choices available to the consumer.  That is why transactions of this 'type' are left to the real estate pros, those folks who keep what they earn by preforming exceptionally well in a competitive free market.

Oct 16, 2018 06:14 AM
Rainmaker
3,213,444
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

They are not in the best interests of the seller.

Oct 16, 2018 03:57 AM
Rainer
212,741
Dennis Swartz
Full Circle Property Management - Columbus, OH
MBA, GRI...experience counts!

Its to stop agents from lowballing unsuspected sellers to put commission interests above client interests.

Net listings work well in commercial or business sales where parties are more savvy.

Oct 16, 2018 02:48 AM
Ambassador
1,656,151
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Not in my state.

Oct 16, 2018 02:15 AM
Rainer
20,225
Romylio "Romeo" Cordoba - NSB Realtor
Adams Cameron and Co. Realtors - New Smyrna Beach, FL
Daytona Beach Real Estate Agent

Lots of reasons, one could be the agent can take advantage and up-sale the property for a large amount, keeping the difference. I know that here in Florida they are legal but very uncommon.

Oct 16, 2018 12:18 AM
Rainmaker
747,859
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Outside of the real estate brokers' world, they are legal in the form of options as used by wholesalers and investors. I'm Pro-Options!

Oct 15, 2018 07:51 PM
Rainmaker
5,507,471
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Simply follow the rules in your state and be a vocal professional if you think the rules are incorrect.

Oct 15, 2018 02:53 PM
Rainmaker
4,432,467
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Oct 16, 2018 08:21 PM
Rainmaker
1,264,132
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Illegal in Cali.  Because too great of a chance for people to abuse it.

Oct 16, 2018 05:29 PM
Rainmaker
3,983,713
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I don't think sellers benefit very often

Oct 16, 2018 05:25 PM
Rainmaker
3,367,089
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Oh my, let me count the ways! The exposure even if legal is not worth it!

Oct 16, 2018 08:08 AM
Rainmaker
1,659,551
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Net listings are to easy to abuse by less than above board agents.

Oct 16, 2018 06:04 AM
Rainmaker
4,797,822
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Not the best solution for the principal.

Oct 16, 2018 05:41 AM
Rainmaker
3,129,025
Richard Weeks
Dallas, TX
REALTOR®, Broker

Some states think it puts the interest of the agent above those of the client.

Oct 16, 2018 04:23 AM
Rainmaker
4,160,705
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Never seen a net listing.

Oct 19, 2018 03:31 PM
Rainmaker
3,243,568
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I think they are illegal everywhere.

 

Oct 18, 2018 09:36 AM