A listing with the purpose of selling property and obtaining a specified amount for the owner is called what?

A listing with the purpose of selling property and obtaining a specified amount for the owner is termed as a net listing. In a net listing arrangement, the seller sets a minimum price they wish to receive from the sale. Any amount received above that minimum price is retained by the real estate agent as commission. This type of listing associates the agent’s earnings directly with the revenue exceeding the seller’s desired net amount.

This system encourages agents to maximize the selling price to earn more but also requires clear communication and trust between the seller and the agent to ensure both parties' expectations are aligned regarding the property's value. The net listing approach can create a high incentive for agents but may sometimes be viewed unfavorably due to potential conflicts of interest, emphasizing the need for transparency in the sale process.