When a Realtor is asked to List & Sell a property for a Seller, why is it that the Seller thinks its smart to cut the selling commission? I cant figure it out! its Business 101. Never decrease the selling commission. If the Listing Broker & the Seller make a deal with the lisitng commission based upon relationship, multiple deals or whatever deal is made is between the Lisitng Broker & the Seller but its not published, its not public knowledge so its irrelavant.
Most active Brokers work very hard for their Buyers & Sellers, when I am looking for homes for my Buyer, I dont pay that much attention to the commission, I pay attention to whats market worthy and fits my Buyers needs. However, if I see a home that is paying .05% commission (discount Brokerage in most cases) on a $800,000.00 home, it is about one 1/4 of the published market commission that is typically paid to the Broker. I inform my Buyer that the commission is going to have to be adjusted because I am not working for free. So its either the Seller or the Buyer making that adjustment. After expenses, taxes, time, fees, etc...its a much smaller amount that we take home.
A Seller needs to clearly understand that when lisitng with a Broker they can make the Selling commission whatever they want, never decrease it though, at-least make it the same as what the market commission is, its going to be a smarter financial move at the end of the day. You will sell faster, likely get better value out of your property and not have to be subjected to continual price drops, Its not always the case but in most cases it happens.
This market is competitive and the Buyers are educated and Brokers are educated, therefore leaving only one choice: dont take short cuts, List with a Broker who will bust their butt, show up, communicate & has strong negotiating skills. Thats what will sell your property, pay the Broker market commission, its the smart route.