Payout Example 1
House Listed: $410,000
Target Value: $400,000 (note: this is decided in private by us)
Target Date: 30 days from Listing Date
Actual Selling Price: $390,000
Actual Acceptance Date: 5 Days after Target Date (excludes days to firm Agreement)
Price Payout = $1.000 (10% of $10,000 price difference)
Time Payout = $500 (5 Days late @$100/day)
Moving Discount = $500
Total of Above = $2,000
Total Payout = $1,950
Total Payout is capped: at $2,000 or 20% of Gross Listing Commission whichever is less.
Gross Listing Commission = $9,750 (390,000 x 2.5%), so 20% = $1,950
Payout Example 2
House Listed: $510,000
Target Value: $510,000 (Note: This may be the same as List Price if you wish)
Target Date: 30 Days from Listing Date
Actual Selling Price: $500,000
Actual Agreement Acceptance Date: 30 days plus 1 week.
Price Payout = $1.000 (10% of $10,000 price difference)
Time Payout = $700 (7 days late @$100/day)
Moving Discount = $500
Total of Above = $2,200
Total Payout = $2,000 (the max payout limit in this case).
Total Payout is capped: at $2,000 or 20% of Gross Listing Commission whichever is less.
Gross Listing Commission = $12,500 ($500,000 x 2.5%). so 20% = $2,500. Therefore the $2,000 maximum payout applies ("the whichever is less" rule).
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