[DON WEDE]

DON WEDE

just got off the phone with a wholesaler. Four properties in remote areas where they don’t have investors they’re doing a net listing sounds like some kind of Internet realtor listing. Anyone familiar with the system?

[Mike Gibson]

Mike Gibson

Don, you probably already know this, but I did I Google search and this is what showed up: “Net LIsting. An arrangement in which a property owner pays the listing real estate agent all purchase price proceeds over and above a minimum figure required by the owner.”

And here’s another definition: “A listing based on the net price the seller will receive if the property is sold. Under a net listing the broker can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states.”

[DON WEDE]

DON WEDE

Mike,
That is what I saw on the internet also. I thought at first it was some sort of internet marketing but it looks like it’s not

[Dee L Graber]

Dee L Graber

.
Guys, while I couldn’t find a nationwide list of which states have banned net listings, there are apparently quite a lot of them. However this 2015 posting was insightful:

from:
http://activerain.com/questions/show/40407/are-net-listings-illegal-in-your-state–if-not-how-often-do-you-do-them-

From a Florida commenter on 30 Sep 2015:
“…since 95% of active agents are members of the National Realtor Association and the associated MLS and local REALTOR organizations, these membership clubs forbid this seller/agent solution. This is one reason why it is important to know who the non-member players in your area are.

As always, any remark of consequence from an unvetted source online might be worth independent confirmation. While I couldn’t find a long lost quip jokingly attributed to Abraham Lincoln about the wisdom or not of trusting statements found on the internet, you get the idea.

In any event, it should be an easy lookup to learn whether net listings are legal in whatever is the one relevant state.

–Dee

.

[Jackie Lange]

Jackie Lange

A real estate agent cannot do a net listing in most states, or so I’ve been told. (they are legal in Panama)

But a non-licensed agent can. It is basically getting an option on the property then selling it for more than your option price. You usually keep all proceeds over the option price. Sometimes you agree to split proceeds over the option price. I think it is best to DISCLOSE to the seller what your plans are so there are no surprises at closing.

Another reason to think long and hard before getting a real estate license.