What happens when a Buyer’s Agent has a Buyers' Agency Agreement?
The buyer’s agent has the checkbox option to simply accept the compensation offered. In that case the compensation is not negotiable.
The buyer’s agent may reject the compensation offered and submit the offer along with an addendum asking you to pay them a higher amount or percentage of the purchase price. (2.5% of the purchase price on a $Million Home that would be $25,000) That addendum must be agreed to and signed off on by the Buyers as part of their offer. (So, the buyers will understand this “Ask” may affect the competitiveness of the offer they are submitting.)
“This revision allows greater flexibility for sellers when listing a property, while affording buyers and buyer’s brokers a vehicle for negotiating the compensation for the buyer’s broker’s services.
The Seller still has no obligation to agree to pay the higher commission, and as the buyer’s agent works solely for the buyers benefit it may fall to the buyer themselves to make up the difference in the offered commission and the commission amount guaranteed in the buyer’s agency agreement.
You could even offer LESS
If your home is listed at $1 million and you are offering a $10,000 compensation to the buyer, and their offer comes in under $1 Million and they ask for more…. You could choose to accept the lower offer or counter back AND you could also LOWER the compensation you are offering down to $5,000 or some other number.