The traditional 6% commission is typically paid half to the listing agent and half to the agent who represents the buyer. With the 990 program, instead of paying 3% of the sale price to your listing agent, you either pay $990 or 1.5 percent depending on whether the buyer is procured by a real estate agent or is unrepresented and comes through one of your open houses.
Buyer agent commissions vary by market but are typically 3%. If the normal buyer agent commission in your market is 2.5%, you even save more.
It is important to offer a commission to buyers’ agents. If you don’t, they won’t show your home. And since most buyers work with agents, this would significantly reduce the demand for your home.