Earlier quoted context omitted.
The buyer doesn't pay the agent, both agents' commission comes from the seller. Also, the agent we ended up with was a direct recommendation from the selling agent, and we figured this would give us a little extra "boost" with her by using her friend.
The buyer pays everyone - no one else brings any money to the transaction.
Well, yeah, sure. Money goes from me, into the "middle of the table", and then everyone takes their share. It's important to say, though, that with or without my agent my buying price was going to be the same regardless... however, the seller may receive slightly less. I think in practice you'll find it difficult to approach the process with a mindset of "if I don't use an agent, the owner will give me a 3% discount".