Tip 8 - Net Listings

A net listing is designed to provide the seller with a fixed dollar amount at the close of escrow regardless of the ultimate sales price. While not illegal, the net listing has led to numerous abuses and misrepresentations. As a result, the real estate department of most states discourage them and require full disclosure of the final selling price to the seller and buyer.

SINCE A NET LISTING CAN LOCK YOU INTO A LOW NET PRICE, NEVER SIGN A NET LISTING FOR OVER 30 DAYS AND NEVER PAY AN UPFRONT FEE FOR A NET LISTING.

When considering a net listing, keep the following thoughts in mind:

   1. You are giving up your ability to actively    
      negotiate your sale with the potential buyer.    
   2. If the market price increases, your listing      
      broker will be the only one that benefits. 
   3. If there is little or no profit for the broker,
      above your net price, the broker and his network 
      will have no incentive to sell your timeshare.   
   4. If you have a certain net price in mind, simply
      add a fair commission to that price and sign a
      standard listing agreement.
   5. If a broker has a ready buyer and is prepare to 
      open escrow immediately, a net listing is ok.