Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

A net listing is a type of real estate listing where the seller establishes a minimum price they are willing to accept for their property, and any amount above that minimum becomes the commission for the broker. Because the broker's commission is directly tied to the selling price exceeding the seller’s specified minimum, it can vary significantly based on various factors such as market conditions and negotiation outcomes.

In contrast, in exclusive right to sell and exclusive agency listings, the commission amounts are typically predetermined and agreed upon upfront between the broker and the seller. This provides a clear understanding of what the broker will earn from the sale. Open listings, while more informal, usually specify a commission rate as well, making broker earnings clearer but less binding than exclusive agreements.

The inherent uncertainty in how much the broker will actually earn from a net listing makes it the situation where the broker is least likely to know the commission amount until after the transaction is completed. This variability is what distinguishes net listings from the more standardized commission arrangements found in other types of listings.