A new pricing model for buy side real estate agents?

[Mark Baird]

Do others think it is time for a new model for buy side real estate agents? On my last deal I saved $18,480 by paying my agent a flat fee and receiving the rest in the form of a rebate. It seems like buy side agents should be compensated on a percentage of saving they generate vs. as a percentage of the purchase price? In turn, the interests of the agent and the buyer are really aligned. Do others agree? 

[Mark Johnson]

@Mark Baird a good agent will have their interests aligned with yours.  The difference between a $200,000  and a $175,000 sales price is a lot of money to you but it does not really change the agent's commission that much.  At a 2.7% commission, which is the norm here in St. Louis, it would be a $675 difference before the split and expenses being taken out.

The agent is much more motivated to get you the best deal so that you will use them again in the future and, more importantly, refer them to your friends and family.  That is how agents build up their businesses.  If they are only focusing on closing the deal so that they can get the commission, they will not last long because their business will not be built on repeats and referrals.