If the listing expires after 90 days and the agent is doing a poor job, then the seller isn't stuck with an ineffective agent. If the listing expires before the home is sold and the agent is doing a good marketing job, the seller can extend the listing. An alternative is an 180-day listing with an unconditional right for the seller to cancel after 90 days. The MLS is the most powerful marketing source available to its member agents. A dangerous type of listing, illegal in some states, is the net listing.
Some sellers tell their agents the net price they want for their home.
The listing agent can then add as a sales commission any amount a buyer is willing to pay above this net price. At first, a net listing seems like a ''good deal'' to the seller and agent. In reality, it's not such a good option. If the listing agent obtains a high price, far above the seller's net price, the seller is likely to feel cheated by the agent, who failed to disclose the property's true market value. Or, if the net listing agent receives a low offer that results in little or no sales commission, the agent might be tempted not to present the offer to the seller.