How is a net listing best described?

A net listing is characterized by the seller establishing a minimum price they are willing to accept for their property. The broker’s commission is derived from any amount above that minimum price. This means that if the property sells for more than the stipulated minimum, the broker retains the excess as their commission.

This arrangement allows sellers to have more control over the minimum amount they expect to receive while providing an incentive for the broker to secure the highest selling price possible. The broker's motivation to maximize the sale price is directly linked to their commission structure since they benefit from any amount over the seller's minimum.

In contrast, options that suggest the broker sets the price, the net proceeds automatically go to the seller, or a fixed fee structure do not align with the essence of how a net listing operates. These alternatives would not provide the same incentive structure for the broker nor the same level of control for the seller regarding the overall sales price.