When we wanted to sell our house in SoCal, and very few houses in the area were selling, we upped the % to the buyer's agent from 2.5 to 3.25. Not sure if it increased the showings or not - hard to tell - but we did get an offer and sold.

If we hadn't needed to move, for a job transfer, I don't know if we would have done that, as the increase meant an additional $5k out of our pockets, but at the time we were willing to try it.

You could write a counter offer giving the buyer 2 options: a higher price with a 3% commission built in and a lower price with your 2.4% commission. Let them decide what they want their agent to receive.

I can't believe an agent would jeopardize a sale by demanding a commission higher than the one that's listed. If I was his client, I'd be really angry. Terriks idea is a good one.

I like Terriks idea as well and like jboling I don't understand how an agent would want to jeopardize a sale by asking for a higher commision that you're listing.

Just once I'd like to see someone offer some outrageous 10-25% buyers agent commission on some run down hole in the wall and see how fast it sells. I'm guessing it would sell mighty quick.

It could be that the buyers may think that he deserves the money, it could be they signed an agreement at 3%, or it could be they were getting a rebate of his commission at 3 but not at 2.4

Although the amount of the commission does matter, a home that is in horrible condition can not be made to look like a rose. We are sales people, not magicians. Some agents do raise the buyer's agent commission on lower end properties. The listing agent doesn't do much advertising on those and they are usually investors or banks that are selling.

I think there may be a buyer's rebate or something going on here. Ok, so he says that the 3% is the "normal" in Madison, which again, is 60 miles away from here (we're in a western Milwaukee suburb. What's interesting is that Madison has a HUGE FSBO "service" that sells a lot of homes - my agent agreed. Also, according to what my realtor heard, the buyer and buyer's agent are high school buddies. Hmm. Could .6% be coming back to the buyer after the deal?

We countered at 266. I went with the "if they want that commission, they're going to pay more" attitude. Also, we increased the earnest money for a measly $1,000 to $2,500, which is in the 1% of selling price ballpark.

We'll see what happens.

Usually buyer's rebates on the commission must be disclosed up front--but of course this depends on the laws in your state. I'd check with your agent or attorney on this, kpfeif.

Honestly that is totally the most insane thing I've ever heard. In IL we disclose the buyer's commission, it will say on the listing 2.5% - $175 or something similar. I cannot even imagine submitting an offer that requested a modification to the contract signed between the listing agent and and the seller.

I agree with Sully call an attorney even though it's not usual and customary in WI.

I know a lot of services are offering rebates from the buyer's agents commission - but honestly why don't they just ask you to throw in $$ towards closing costs or something more normal. Sounds wacky.

My feeling is (as others already have mentioned) that the buyers have a contract with the buyers agent that he would be paid 3% and they would have to come up with the difference if the sellers doesn't pay the extra commission.

Sounds like you did a good counter.

My Realtor agrees with lyfia - she thinks the couple signed a buyer's agent contract with the Realtor and agreed to the 3%. That's fine, but they're going to pay for it.