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.
