Who pays what?
At time of listing, the seller dictates the pay out for both the seller’s agent and buyer’s agent. This is usually 2.5%-3% for each agent, or 5-6% for both. Make no mistake that although the seller is paying this out, YOU, the buyer, is essentially providing funds to the seller to make this happen. So it is YOUR money.
Since I’m not using a buyer’s agent, can I pocket that money?
There is a hierarchy within the real estate community that prevents this from happening. Essentially, a real estate agent can only be licensed to work under the umbrella of a designated broker. Agents cannot work independently and are prohibited from receiving a commission directly from their clients (unless they are the broker themselves).
Hence, the buyer’s agent fee disclosed on a listing can only be paid out to the buyer’s broker, who then subsequently pays it out to their agent. Since you are NOT an agent, that amount CANNOT be paid out to you. Instead, it will default to the seller’s agent, unless the seller renegotiates with their agent. [It doesn’t hurt to suggest this, but hard to do so since you have to go through the seller’s agent for all communication.]
Is there an alternative?
You can always work with a buyer’s agent, just remember to negotiate their fees up-front. Use a website like https://listwithclever.com to shop for an agent that is willing to work for less commission (whether buying or selling). Or call up an agent you know and negotiate directly with them. I usually ask that any fees in excess of x% paid to buyer’s agent be credited to me at closing.
[It helps if you are buying a more expensive house, as the lower % still amounts to a large nominal $.]