How Important is Commission when I put my home up for sale?

As a buyers agent I consider it most important (and my fiduciary responsibility) to find my client the best possible property regardless of the commission offered. It would be nice if every agent felt that way too.

As a seller and sellers agent, I find the amount of commission offered can be a very important and strategic decision. First I look at the market, is it a "Sellers Market" (inventory levels of less than 3 months), A "Neutral Market" (Inventory levels between 3-6 months), or a "Buyers Market (inventory levels over 6 months).
In a "Sellers Market" I can offer a commission of 2.5% or even 2% with no worry of decreased interest or traffic.
In a "Neutral Market" a commission of 2.5% is acceptable, but 3% would possibly entice more agents to preview or bring clients.
In a "Buyers Market" I always start at 3% and have even gone as far as to offer 4% to entice more agents to visit the property.
Regardless of the market, I charge my seller 2.5% to list the home, so if you are offering more to entice the buyers agent, as a listing agent I don't add more "enticement" to my side.
Any agent you interview should be providing you with data, showing you sold comps that would be appraisal comparable, active comps to see your competition, and inventory levels so you can determine your immediate areas market condition.
example: If 10 homes sold last month in your area, and there are 30 homes active on the market in the same area, then there are 3 months of inventory.
In conclusion, proper pricing from the beginning and strategic planning of buyer side commission, can prove much more inexpensive than price cuts, (most buyers would not even notice a price cut that did not exceed 5% of the purchase price)