If my buyer won't pay the difference (per my CAR BRE contract) between what is offered and 3%, then we avoid under-commissioned homes.

I submit that agents that do this are trying to double end them. I have even seen $500.00 offered + referral fee. They literally will only pay $500.00 or expect you to refer your buyer to them for a referral fee. I hope they don't sell, but I honestly never track homes I'm not in escrow on or targeting for a buyer...why bother?

Absolutely, positively correct. Is it the sellers, or the listing agent? That is the question to be pondered. Many times the sellers do not pay attention to what commission agreement they sign and many listing agents think they deserve more than the typical 50% split. Too bad for the sellers!

No. There are a few listings that will not pay co-op because of low fee. Some buyers or realtor-investors do not mind......

The worst kind is overpriced.

Thomas J. Nelson, Realtor has this one. 

No.  It is generally price, location and condition that cause a house not to sell.  I've seen some (and even brought a buyer to one) that was an "entry only" listing (agent provided no service, listed it for a FSBO friend) and that seller paid a small flat fee.  My client wanted to see it and it was a prefect fit for her.  We placed an offer and it was accepted.  Commission never entered into the discussion (even though she was a former realtor and would have understood).  That's just how I roll.  Client first.

ABSOLUTELY!

Adjusted compensation. sold in 7 days.

And it was premium real estate.

Sometimes one can try to save money and pay more in the end.

Lots of properties do not sell regardless of the amount of commission offered to the co-operating brokerage.  I do not spend my time analyzing such an issue.

how would anyone know that the reason was due to the commission? usually a property won't sell if it's not priced properly...if it were, even if the commission was miniscule, the property would sell...

Absolutely.  

Absolutely! It's ridiculous to offer a tiny co-broke.

Tony and Suzanne Marriott, Associate Brokers I don't pay attention to the stated fees. My buyers sign a BBA knowing they may have to pay some or all of the fee.

I;ve seen them overlooked and the listing lag behind average DOM.

Some may argue that that was the main distraction but it is usually price and location...

Yes I have and all the other agents steer clear of it.

We had a listing agent tell me they were collecting both sides and paying a few hundred co-op "Because we can." Their listing expired, relisted with a new brokerage and fair CB and sold. Bad practice + bad attitude = fail.

I have not noticed it.

It would mean a conversation with the buyers as how they would like to proceed. 

Here most times the homes are overpriced or are REO's that need rehabbing and over priced.

Yes, there was a seller in my complex who did not sell his home because he was only offering 1%.

In my opinion "no". Maybe not sell to a particular buyer that has a buyer agency agreement and that buyer doesn't want to be on the hook to pay the difference to their agent themselves. But not sell at all, no if it's priced right they will sell regardless of co broker commish. About half the time the buyers I work with have found the homes they want to see on line and after weeding them out based on their needs (not commish) I show them the ones that best suit their needs. 

I would not know since I always offer a fair split.

I think the commission rate always inspires an agent one way or the other .....

If the price is right, the property will always sell eventually. If no one wants to represent a buyer, that buyer will call a listing agant directly. Some listing agents( especially on rentals) have extremely low commissions, no one will waste their time on showing those properties. Yet a client should not be too happy to get into such deal without a proper representation ( since if course, a discounted broker will perform exactly what he/she is paid for), I just had a call from a very unhappy client who went through such deal, not pretty and they thought they are getting a good deal. 

Tony and Suzanne - I don't know if a home never sold due to the amount of co-broke commission offered to the buyer's broker; however, I have heard many buyer's agents who have said they will not show a home for less than a certain commission amount - which I believe is a disservice to their client by the way.

I saw one that had a really, really low commision, but I think it didn't sell because it was a complete dump and was over priced.

Yes.  I have seen two identical floor plans in a subdivision and in the same condition..  One will get lots of showings and sell in a normal time frame while the other at the same price will sit.  I have seen this situation numerous times.

I have not seen that happen. 

NO, and with a buyers contract it shold not be an issue

No.

Tony and Suzanne,
I can’t document any particular properties but do notice that houses with low buyers’ agent % can tend to sit on the market. Cause and effect?