Hi.

#1) settle for the 2%

#2) you've already discussed with your buyer and he/she/they have already concurred they will pay the additional .5%

#3) discuss with your buyer about the possibility of adding into the offer (if that's allowed in your state/area).

Nothing clever involved.  You either have a buyers agency agreement with your buyers that sets your minimum acceptable commission and they make up the difference between the offered co-op and your minimum, or you negotiate with the listing agent BEFORE showing for a higher co-op (and in this market, good luck with that, expect to hear some very loud snickering).

1. Your buyer/broker agreement (which you should have signed with every buyer) sets a minimum, putting the difference on your buyer, which you simply warn them up front "this house will cost you an additional .5%."

2. Ask in the buyer's  offer for 2.5% - negotiate for it.

3. Accept 2% if you you didn't do #1 and couldn't accomplish #2.

Closing escrows with advocates that will refer you has much more value than .5%.

Contrary to popular belief....(Please go read the interpretation of the code of ethics)

The Buyer Broker commission (or a portion) can be added to the offer by the buyer. A buyer can ask a seller for a new roof, credit towards closing costs, or additional commission for the agent....anything.  That is then paid by the seller and does not interfere with the listing agent commission.

What is a violation of the code of ethics... is if the buyers agent suggests that the listing agent receive less commission.  No one can alter any agreement between a listing agent and the seller.

Likewise, if you have a buyer agreement to receive a minimum commission of X , that CAN BE INCLUDED in the offer, and the listing agent cannot interfere. 

There was a time when all exclusive buyer brokers put their commission in the offer so that they would be paid at all...yes, it has been challanged in the courts, so before anyone gets their feathers ruffled, read all of the interpretation of the code of ethics.  Or send me your e-mail and I will send you documents.

HOWEVER....I would not suggest that you do that in todays climate of a crazy selllers market because you will never get your offer accepted.  It is better to accept the co-op and move on to higher priced sales.

Eve

Hi, Austin.

    Write it into the Offer, "Seller pays 0.5% to Buyer's Broker (your name)".  

  I suggest that you talk with your Board Attorney, or a real estate attorney who knows your local contract forms.  Ask him/her "What wording should I use?"  And of course, run it past your Broker, if applicable.

   Here is one of the forms that I use:

1. Make sure you have a buyers agency signed that specifies what you want to be paid.

2. Then either your buyer pays anything that the seller is unwilling to pay.

or, the buyer writes into the offer that the seller will pay your full fee.

Sure. Sign an exclusive with your buyer that in event of less than x, they will make it up. 

You have some outstanding comments here. I have read them all and have nothing new to add other than, my market is like the wild wild west. 

Depending on the offer, the last one we received on one of my listings was $400,000 above asking. Would the well have agreed to pay more than what was offered?  That depends on what the next highest offer was.  It's all about the net to the seller/

Why bother! I use the discounted commission as a leverage for future business e.g, listing, referral etc. 

When I have a BRA it states that I am paid a certain commission rate and the buyers agree. But this does happen. So I inform the buyers that they owe the difference, but I am willing to accept a few referrals and/or their agreement when their ready to sell, that they will hire me!

Great way to build future business...  

Accept the 2%, or have your buyer kick in a half percent. Nothing clever, just the facts.

As everyone else has mentioned already, get a buyer-broker agreement signed.  I think it is very sad that so many agents give discounts to sellers these days but it is what it is.

You can ask BUT maybe the total commission is 4% & is being split 50/50

Ask for it.

In some states, prior to an offer, you can submit a form to the listing office to try and change the commission.  They would have to agree, of course.

I have seen agents try and sneak it into the offer.  That's a bad move out here, as that invalidates the entire offer.

Kat is spot on. You have options. This is a discussion I have with clients up front so they know that is a possibility.

In a multiple offer situation if you add commission into the deal, unless the terms are much better than the other offers, you may not get the offer accepted.

As a listing agent, if someone brought me a "clean" deal (?) & wanted 1/2 percent for doing so....YES to this. 

1. what is plan B and C regarding the buyers choice if this deal fall apart? OH, in this market it seems you have to buy the one you see otherwise it could be a long search.
2. How does buyer feel about stepping up to the plate regarding minimal compensation. 
3. Advise buyer that the REBATE disappears when the compensation is not 3%. It may be necessary to include such situations in the agreement.
4. Write the offer stating required adjustment to buyer broker compensation. Seller can reject or accept.
5. Understand there are 3 spots ahead where further negotiation will occur. Use your superior skills to reward your buyer for stepping up to the plate.

Lots of great answers here. Obviously a heated subject.

This should be covered in your agreement with your buyer client.

You could sign a buyer's broker agreement with your client that states your minimum commission and let's them know that they must make up any shortage.  Personally I don't and wouldn't.  I let all of my clients know that I serve their best interest and not my pocketbook.  I once showed and sold a 1.2 million dollar home with a fixed commission of $7,000.  Sucks but it all goes into the pot and at the end of the day we get paid well.

Best answer is from Liz and Bill Spear with the exception that they did not mention option #3 which is take the commission that is offered and move forward.

First of all, I'm not discussing commission in detail but, I will let you know how I handled a transaction in which I represent the buyer and the seller's brokerage did not offer the amount that my buyer had agreed to pay me on our buyers agency agreement.

I'm in the middle of something very similar to you. My buyers asked the seller to provide the difference in what the listing brokerage was offering and what they were offering me. They adjusted the price and agreed to pay the difference in any appraisal deficit. 

The sellers agreed, the house appraised and we are good to go!

When you sign the BAA, always be SURE to explain how you are paid and what you are expecting to be paid. Buyers take this very seriously. Sometimes, they don't even want to tour homes that the sellers' brokerage is not offering the same amount of commission that they promised their BA.

Good luck!

I take my advice on the subject from GAR's legal counsel.  

It begins with the asking and the more clever you try to make it the less likely a warm reception will be received.

Ask the buyer to cover the .5%.  If you include it in the offer, they'll likely decline thanks to it being a seller's market.  

After the offer is accepted, I'd be sure to provide a discounted level of communication and help along the way to the listing agent, though.  And if they had a problem with it, I'd make it clear to them that you're providing services in line with the pay.

I have enjoyed reading all the answers to this question.  Interesting.  We all have options.  

Have your buyer pay the extra .5% or whatever it is they signed they agreed to pay in your Buyer Brokerage Agreement.

I'd ask myself if the extra 1/2% is worth the trouble. The buyer can pay it depending on what's in your Buyer Broker Agreement. Personally, I'd be happy with the 2% if that's what is posted in the mls. If you already showed the property, then you already accepted the 2%.