Ace the Washington State Real Estate Challenge 2025 – Unlock Your Path to Success!

A net listing in real estate refers to an arrangement where the broker's compensation is based on the sales price exceeding a predetermined amount that the seller wishes to receive. In more detail, the seller specifies a net amount they want to take away from the sale, and the broker retains any amount above that figure as their commission.

This type of listing can incentivize the broker to negotiate a higher sale price since their commission is directly linked to the amount received over the set net proceeds. It is important that both parties understand the terms clearly to prevent any disputes regarding the broker's compensation and the expectations surrounding the sale.

The other choices do not accurately describe a net listing. A standard commission structure is typically fixed and does not allow for variation based on the sale's outcome. A contract that guarantees a minimum sales price would not incorporate a broker's potential earnings based on any amount exceeding that price, which is a fundamental characteristic of a net listing. Lastly, a listing that does not involve a commission does not align at all with the net listing structure, as a net listing inherently includes a commission for the broker based on the proceeds of the sale.