Typically, the seller of a property pays the realtor commission. The commission is a percentage of the sale price of the property and is negotiated between the seller and the realtor at the time of listing the property. The commission is then split between the listing agent and the buyer’s agent, with each realtor receiving a portion of the commission.
In some cases, the seller may agree to pay a higher commission in order to attract more interest from realtors and increase the chances of selling the property quickly. However, in certain transactions, buyers may opt to pay the commission, specially in the case of new construction and in commercial transactions the commission may be shared between the buyer and the seller.
It’s important to note that the commission is negotiable and the buyer and seller can agree on different arrangements and negotiation before signing a listing agreement.