Who customarily pays the listing broker's compensation?

In real estate transactions, the listing broker's compensation is typically paid by the seller. This arrangement reflects the common practice where sellers agree to pay a commission to their listing broker as part of the contract for services rendered in marketing and selling their property. The listing agreement is a contract where the seller grants the broker the authority to represent them in selling their property, and a commission is a standard part of these agreements.

This commission is often a percentage of the sale price of the property, and it incentivizes the broker to effectively market the property and negotiate on behalf of the seller. While there may be situations where the buyer might pay fees or commissions, such arrangements are less common and typically arise in specific types of contracts. Thus, stating that the seller customarily pays the listing broker's compensation aligns with standard practices in the real estate industry.