In what situation would a net listing be particularly concerning?

A net listing is a type of agreement in which a real estate broker is allowed to keep any amount over a set price as their commission. This arrangement can create situations where there may be a conflict of interest, particularly if the broker is not acting in the best interests of the seller.

When considering the option where the concern arises from the broker's dishonesty, it becomes clear that a dishonest broker could potentially undervalue the property to secure a higher personal profit. In a scenario where the broker manipulates the sale process or fails to seek the highest possible offer, this could lead to financial loss for the seller. The broker's integrity is crucial in a net listing because their incentives may lead them away from representing the seller's best interests.

While concerns can arise in other contexts (such as an undervalued property or a dishonest seller), the specific issue with net listings is the power dynamic that exists between the seller and the broker, where the broker might be tempted to compromise the seller’s financial outcome for their own benefit. This inherent risk emphasizes the importance of trustworthiness in the broker-seller relationship, making it particularly concerning if the broker is dishonest.