Buyer rolls closing costs into her loan while raising price

[Kay March]

The buyer wanted me to pay her closing costs up to a certain percentage. I said no, so her agent said, "OK, we'll roll the closing costs into the buyer's loan." They then presented an offer in which the buyer (1) raised the purchase price by the amount of the closing costs and then (2) required me to pay those closing costs. After paying those closing costs I will net the original purchase price, but the drawback is that the higher purchase price raises the commission I will pay to the buyer's agent. Why did they do this? Why didn't the buyer just add the closing costs to her loan and leave the original purchase price where it was? Was it done in order to raise the buyer's agent's commission?