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A net listing is characterized by a situation where the seller establishes a specific amount they wish to receive from the sale of their property. Any proceeds above this predetermined amount are then paid to the broker as their commission. This arrangement can incentivize brokers to maximize the selling price since their compensation increases with a higher final sale price.

Understanding this type of listing is crucial for real estate professionals because it differs significantly from standard commission structures, where the broker's fee is a set percentage of the sale price. It highlights the necessity for clear communication and agreement between the seller and the broker regarding expectations and potential earnings from the sale.