Why might a broker prefer a net listing?

A broker may prefer a net listing because it allows for higher potential earnings on sales. In a net listing agreement, the seller specifies a minimum amount they wish to receive from the sale of their property. Any amount above this specified minimum becomes the broker's commission. This arrangement incentivizes the broker to sell the property for as much as possible, as their earnings can increase significantly with a higher sale price. The potential for greater commission earnings can motivate brokers to work harder in marketing and negotiating the sale of the property.

The other options do not align with the primary advantage of a net listing. A net listing does not guarantee a lower commission rate, nor does it inherently simplify the listing process for the seller. Similarly, while the need for appraisals might vary based on specific situations, a net listing does not eliminate the necessity for them in establishing property value to determine an acceptable sale price.