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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][b]The commission agreement is in the contract between the seller and the seller's agent. A seller is entirely within his or her right to say "After thinking about it, I'm not willing to sell this house through you unless you agree to reduce your commission from 5% to 3% so that I can accept this pending offer."[/b]

And, as the Economist Article nicely points out, this argument is circular. Agents tell sellers they'll build the commission into the cost of the house, and tell buyers they're not hurt by the commission. Its not possible that both are true.[/quote]

You just contradicted yourself. The seller is not within his or her right to change the terms of a listing contract in this way. Not at all. In fact, if the agent brings a ready, willing and able buyer and the seller tried to do this and the buyer walked because of it, the seller would legally owe the agent a commission, whether or not the house has sold since the agent fulfilled the terms by bringing a ready, willing, and able buyer.

So, once there's a contract, a seller actually [i]has no right at all[/i] to say "I'm not wiling to sell this house through you unless you agree to reduce your commission from 5% to 3%." That's what a contract IS.[/quote]

The agent didn't bring a ready, willing, and able buyer if the buyer is willing only if the commission is cut and the agent is not willing to cut the commission. That's question-begging.[/quote]

Not really. No buyer's going to write an offer based on the commission being cut. The buyer doesn't CARE because the buyer isn't a party to that agreement or contract. The buyer MIGHT offer 3% less than list or ask the seller for closing help, but the buyer doesn't add a clause to the offer saying "but i'll only buy the house if you renegotiate the commission you pay to your agent." Do you even understand how absurd that sounds?
[/quote]

As already outlined, the buyer would tell the seller directly that they'll offer x price and that the seller should make up the difference in the commission. Why would any of this be reflected in the offer papers?[/quote]

no, the buyer is going to offer x price period. it is up to the seller to accept of refuse the offer. the seller cannot go to the agent and say I will pay you less than agreed upon becuase I got an offer for lower than I wanted, same as he cannot go to the painter who repainted the house to prepare it for the sale and say I agreed to pay you $3000 for the painting job and this is what it is in our contract, but now because the house is selling for less than I though I will give you only $2000.

if there is an acceptable offer, the seller's agent could sue the seller who refuses to pay the full commission in the contract[/quote]

And would win. You forgot to add that. There would be a summary judgment. Take about 5 minutes.[/quote]

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