Its interesting how much misunderstanding exists regarding the commission structure.
At one point a year or so ago, I was drinking coffee with a real estate journalist I respect very much.
This individual thought
a: that a buyer going through a listing agent saved a seller money and
b: that buyer agents pushed for higher purchase prices to get a higher commission.
Now a) is just not true (commissions for buyer side is establised at time of listing and is almost always paid whether or not there is a separate buyer agent) and b) has such a low return rate as a perverse incentive structure that it is not a big issue.
I won’t go so far as to say that it never happens. I am sure it does. Somewhere. With really stupid agents.
A way around this is to simply name a buyer-side commission for the agent. If the offered commission is high, the difference comes as a buyer rebate. If the commission is low, then the buyer gets to pony up.
If I know the commission is $10k no matter what, I am going to push for $380k because I know that is more likely to get the deal done (and me paid) than if the price is $420k.
