My wife is an agent. I have noticed that houses in our area usually offer 2.5% or 3% to the buyer's agent. I have asked my wife why the discrepancy and if it influenced agents' decision of what houses they show to clients. She said it is completely up to the seller's agent how much they want to offer. However, from what I've seen when the buyers agent gets more the sellers agent gets less, the seller pays the same 6% commission either way. She was also adamant that it would be seriously unethical to not show a client a house offering 2.5% or try to steer them toward a house offering 3% and said no one she works with does anything like that. I'm sure it affects how some agents act though.
I suspect your agent doesn't want to drop the price because he/she will get paid less, but if you pay more commission to the buyer's agent your agent does lose out on any money.
My non-professional opinion: If you want your house to sell faster, lower the price.
Thank you and tell your wife thank you too for her professional input.
Yes, he said it was to convince the buyer agents to work harder to sell my house. I thought that is what MY agent was doing. Actually I know that houses sell themselves.
Also, to clarify - my agent is suggesting that I up the buyer's agent commission in addition to the already 6% we have in the contract. My agent did not offer up his commission and I would be paying over 6% for any transaction. So it is additional expense out of my pocket. That sounds shady to me and it actually makes me want to cut and run.
I think I will ride out this contract (which is almost done) and then go off and relist with a new agent at a new price. My area is a hot, sellers market, but seasonal and slowing down now. I need to sell this house ASAP and I am willing to cut my losses now rather than carry a mortgage for more months, possibly without a job in the near future (damn merger)! I will be bringing a check to closing and my agent knows this. I am over the "what I need to get" and accepted the "what a buyer will pay" today versus what they paid in May/June. Prices are falling.
I have another post with all my history called "when to drop the price on home" from last month if you are interested. I do not need to make any updates at this time, but I know I need to reconsider the price...again.