What is the chief disadvantage of a net listing for the seller?

A net listing can be disadvantageous for the seller primarily because it may result in them not receiving the true market value for their property. In a net listing agreement, the seller specifies the amount they wish to receive from the sale, and any amount above that can be kept by the broker as commission. This arrangement can incentivize the broker to sell the property quickly, potentially at a lower price, to secure their commission. As a result, the seller might miss out on the full market potential of their property since the broker's primary motivation is to achieve sales above the net amount rather than maximizing the sale price itself.

The complexities of the closing process, absence of legal records, and the upfront payment of the broker's commission, while relevant considerations in real estate transactions, are not distinguishing disadvantages specifically associated with a net listing as they apply to various listing types and practices. Consequently, the risk of not achieving the property's true market value is the paramount concern in a net listing arrangement.