In a net listing, what does the broker's commission consist of?

In a net listing, the broker's commission specifically consists of the amount over the set minimum price the seller has established for the property. This type of listing agreement allows the seller to set a minimum amount they wish to receive from the sale, and any amount above that minimum is taken as the broker's commission. For example, if a seller sets a minimum of $200,000 and the property sells for $250,000, the broker's commission would be the $50,000 difference.

This arrangement incentivizes the broker to maximize the sale price to earn a larger commission while ensuring the seller gets at least their desired amount from the transaction. Other options do not accurately reflect the nature of net listings; for instance, suggesting that the broker’s commission is the total sale price or a fixed percentage fails to capture the essence of how net listings function.