When I sold we cut a deal: I set a price (higher than he recommended) telling him that if it sells at that price he gets his full 3%. If it goes for less, his share is cut to 2%. If it goes for over asking price, he gets 4%.
It sold for 10% over asking price. This occurred 8 years ago, when the market was flat and just starting to turn.
Yes, it is negotiable, but with 3% as the baseline. I’ve sold a house on my own before and am aware of what goes into the transaction. The fees, even at 2 or 2.5%, are way too high at current prices.
We did a similar deal when selling my mother-in-law's home in SF in 2017. Agent wanted 6%, we negotiated for 4%, and he countered by saying if it went 20 percent over asking he would get the 6% commission. We listed at $1.2M (matching comps in the area). House sold for $1.5M within a week and he got the full 6%. Both of us happy.
Same house got remodeled again by new owners and went on the market last week for $2M. Home prices in San Francisco are insane.