[cploonker]

How about following: asking/reference price is determined at the time of signing the contract.

"For every 1% change in the selling price, seller broker will get 10% change in commission rate. i.e.

Sell price Seller broker commission

Reference/asking price 2.5%

1% less than asking 2.25%

5% less than asking 1.25%

10% less than asking 0% (same for anything more than 10% less than asking price.

1% higher than asking 2.75%

5% higer than asking 3.75%

[cploonker]

I created a sheet which shows the same calculation as above. It shows how when the selling price increases with respect to reference price(agreed between seller and broker) both benefit. Actual listing price on MLS does not have to be same as the reference price. https://docs.google.com/spreadsheets/d/1RZPJ0PxdZo-tMwsTG3g7...

This ensure that the seller broker interest is aligned with the seller. And the broker will tend to come up with a realistic price as reference price rather than an inflated price before signing the contract and then constant nagging for reducing the price after signing the contract.

[JSeymourATL]

Why would anyone enter a contingency deal with penalties? Relative to maximizing your sell price-- better to invest in extra fluff & buff, designer quality staging. Make sure your property gives buyers a Wow Factor.