What is the max commission (both sides) you would pay as a seller ? Would you buy the argument from your agent that paying less than 3% (say 2.5%) to buyer agent would lower down the marketability of your home ?

Is the .5% really worth the risk? 

@Muks M. Me personally, I am OK with 6% for properties less than $500k, above that I would look for 5% if it was normal in my area.  If not, I would not do it. 

Buyers agents will see the commission, and might be less interested in showing your property.

It depends on a couple factors, one is how expensive is the home?  On properties over 500k in my area it is normal to see 2.5%.  A good realtor is essential to creating foot traffic through your home, but some realtors are lazy even if they are getting paid a full 3%.  I think it can be worth it depending on the situation.  Another thing you can consider if you are not getting offers (conceivably because of lower %) is to amend the listing to include a bonus to the buying agent if under contract by X date.  I recently did this, not sure if it did help, but it went under contract a week later.  I have a very good relationship with my realtor though, it that is essential to this type of thing. 

@Nick Feliciano

Probably not a lot (~3K)..was trying to figure if the argument used by one of the agent during my due diligence is a valid one ? I have seen people saying that 5% is easily negotiable and have an agent ready for that (2% for her as a selling agent and 2.5 or 3% for buying agent). However, another agent used the marketability argument and was kind of at the fence thinking delayed selling.