Buyers agent commission proposal

[Colin McDonald]

I'm in a position where I will be buying my first home in 2016 and would like some feedback on how I'd like to structure my buyer's agent's commission. Frankly, I think the status quo for buyers agents is totally wacky. And in this day and age when I will be doing most of the research myself, a full 3% commission just doesn't seem right unless they are really working for it. I don't really understand why an agent buying a home at $1M gets 5x an agent buying a home for $200k despite the fact that both agents are doing the same amount of work. I'm looking to buy a home right around $1M in a coastal San Diego neighborhood, so you can figure total compensation based on that number. Here's the deal I'm thinking that will both make the compensation fair and incentivize my agent to work to lower my cost as much as possible: Agent receives 3% commission from seller and keeps: 1% of sales price (includes all normal duties + attending 3 showings with me) Plus 0.03% of sales price for attending any additional showings with me Plus (Lowest ask since prior sale - negotiated selling price) / $10,000,000, not to be less than 0% So two examples: 1. If I buy one of the first three homes I see and my agent can't get me a deal better than full ask, my agent gets 1% ($10,000) and rebates $20k back to me. 2. If I see 20 homes with my agent, love the 20th, and my agent gets me a killer deal at 120k below ask, agent receives total commission of 1% + 17x0.03 + 120,000/10,000,000 = 1% + 0.51% + 1.2% = 2.71% = $27,100 and kicks 0.29% back to me as a rebate. I'd love to hear your thoughts. To the people who don't like the idea, please tell me which of the three parts of the commission (flat, showing time or negotiation) you think is unfair and why you think an agent should receive more for that portion of the service. Thanks!