What is a clean list?
List is an agreement between the seller of the house and the broker that the seller commissioned to find the buyer. In most of the List Agreements, the broker is entitled to a percentage of selling price as a commission. On the contrary, in an agreement on the net list, the intermediary considers the difference between the sale price and the net price agreed by the dealer if the selling price is higher. Since this practice can include the broker in the position to use the seller, it is considered illegal in many places. As a result, house sellers often look for a licensed real estate broker to facilitate the sale of houses. Brokers have experience with sample houses potential buyers, negotiations with all regulations associated with the sale of houses and negotiations of fair prices. When a home seller hires a broker, one of the different conventional inter -state statements of both parties are usually signed and stipulates fees caused by a broker. One type of agreement on an unorthodox statement is a net list and sellers should nAnd to be careful.
As an example of how a clean list works, imagine that the seller wants his house to be sold for no less $ 100,000 in the US (USD). It is considered a clean price and the broker agrees to sell the house and takes anything that goes beyond the network that is achieved by the eventual selling price. If the house is sold for $ 125,000, the broker would receive $ 25,000 as his commission, which is the difference between the sale price and the net price.
Such an agreement on a net list can lead to various ethical dilemmas for brokers, and therefore many states in the United States do not allow this practice. Some brokers could deliberately distort the value of homes for the sellers to encourage them to determine the low clean price. If the house is sold much larger than this amount, the broker will be a pocket money that rightfully should belong to vendors.
In addition wouldThe broker in the net list agreement could encourage buyers to withstand higher selling prices in an effort to charge a higher commission. The legitimate offers in the house could be rejected by such a dishonest broker, especially if these offers were too close to the net price and thus not so profitable for brokers. Sellers should be wary of the sale of their house in this way, even if the practice is legal where they live.