Real estate seller broker commission calc example

	A	B	C	D	E	F	G
1	Following is just an example showing how the commission is tied to performance(sale price) with respect to a target price set by the broker
2	For every 1% change in selling price (compared to agreed target price set by broker), seller broker's commission rate changes by 0.1%
3	This way instead of having to deal with seller brokers just ask them to give a target price and agree to the formula and then give it to the one quoting highest target price!! job done!!!
4	Note buyer broker always gets 2.5% irrespective of the selling price
5	Listing price on MLS can be anything and has nothing to do with target price set by seller broker
6	Selling price is the amount exchanged on the day of closing. In case of inspection related discounts both seller and broker lose.
7	Following is an example calculation
8	Agreed target price		500000	<==Change this target price(set by seller broker) to update numbers in below table
9
10	% Price change	Actual final sell price $	Seller broker commission %	Seller broker commission $	Seller Net proceeds $ Buyer broker commission will be deducted from this number	Buyer broker commission %
11	-10	450000	1.50	6750	443250	2.5
12	-8	460000	1.70	7820	452180	2.5
13	-6	470000	1.90	8930	461070	2.5
14	-4	480000	2.10	10080	469920	2.5
15	-2	490000	2.30	11270	478730	2.5
16	0	500000	2.50	12500	487500	2.5	As selling price increases both seller net and commission increase and vice versa and hence keeping interests of both parties 100% aligned
17	2	510000	2.70	13770	496230	2.5
18	4	520000	2.90	15080	504920	2.5
19	6	530000	3.10	16430	513570	2.5
20	8	540000	3.30	17820	522180	2.5
21	10	550000	3.50	19250	530750	2.5
22
23
24
25	To make a copy of this sheet to edit number use this link: https://docs.google.com/spreadsheets/d/1RZPJ0PxdZo-tMwsTG3g7Ftm36qKZpS-Rf-bw7gpYlJk/copy
26
27	PROS
28	Seller broker with highest target price wins the business and has to work to meet set target
29
30
31	Following brokers have agreed to work on such terms
32	https://www.kw.com/kw/agent/chrisdaliani
33	https://www.nestseekers.com/agent/marc-aschoff
34
35	Notes
36	Feel free to email me should you have any questions: cploonker@gmail.com
37	Please send links to brokers who are willing to work on these terms.
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100