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The offer of compensation to the agent working with a home buyer is advertised on the Multiple Listing Service, or MLS. That amount can vary from market-to-market, but the usual in our area is 3%. That's all but a routine factual sight when a buyer's agent searches for properties. 

But every now and then I'll see 2%, 2.5%, 1% or even a flat-fee of say X which looks better than saying 1%. This practice is even more common place with rental properties. The compensation for rentals can be so low that it's laughable. This week I saw the commission offered on a $2,500.00 lease at $100.00. It would typically be $1,250.00. Our MLS requires something be added besides.... zero. 
So why does this happen?  
1. The seller has hired a discount broker and has agreed to pay LESS than the typical TOTAL commission, so the listing agent is sometimes splitting what they were able to negotiate with the seller.  This practice does in fact lower the odds of the seller selling their home as there are agents who quite simply will PASS on showing this property, regardless if it is unethical, selfish, or not so Christian like. It happens.
2. The listing agent realizes it's a ... more

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