You are exactly right. Some people (likely realtors) purposely emphasize that there is a contract in place already between the seller and seller agent regarding the commission. They hid the fact that the buyer could still save up to 2.5% (buyer agent commission) by means of a rebate. The "trick" is ask for a rebate.hierophant wrote: ↑ If I'm understanding correctly, what you're saying is that that the fee between seller and their agent cannot be changed because it's already agreed upon via contract. However, what I think newuserid was trying to get at is that the SALE price of the house can be reduced by the fee of not having a buyer's agent (e.g. 2.5%) but didn't communicate this effectively ...or I could be completely off base.
For a 1m property, it is $20,000 for you with a 2% rebate and $5,000 for the seller agent with 0.5% leftover buyer commission. This $5000 might give you a small edge over other comparable offers in a hot market. Although it is difficult to decide the ideal % (e.g., buyer keep 1%, seller agent 1.5%), some buyers (not all) may want to explore this possibility which realtors certainly want to hide. Can I blame them? No.