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First of all, thanks for the vote of confidence Face_Truss!
The amount of commission that is lost in a negotiation is so negligible that I can't believe people would consider this when guiding their clients. Do the math (and don't calculate the different by the full commission amount...figure about 30% of the total commission for the typical agent split).
I can honestly say that this is never a factor when counseling my buyers. If they are unrealistic about their starting point I will still write the offer, but I do counsel them that they are risking offending the seller and in fact it has happened that the seller does not want to deal with this person at all. The buyer then wonders what happened. Why did they lose the house they really wanted to buy?Any good buyer's agent can give their clients the statistics of asking price vs. sold price (on average) in their local market. You can then use that information to determine a reasonable starting point in negotiations.
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For Sale: $215,000
For Sale: $310,000
For Sale: $94,900