Chicken!  No, Egg!!  No, Chicken . . .  who knows!  To me it is semantics and as long as SOMEONE pays, I don't get bogged down in the details

Some days I think it is us. No wait that is our blood sweat and tears that are shed

One of my first brokers would ask "What does the contract say?" Right on page one of the Listing Agreement it says "Seller agrees to pay Broker ..." as well as "Seller acknowledges that Broker will offer x.xx% to the cooperating broker who is the procuring cause of the sale."

Told ya. Existential question. ;)

The seller. Great question by the way:

Commission is not paid until money changes hands and escrow closes. At close of escrow, it's from the seller's proceeds we get paid. The market dictates the price. I've never said " your home is worth $600,00 so let's price it at $636,000 to cover the commissions". That wouldn't work and it's a bad analogy. Because now you have a seller focused on the cost of 6% vs. the gain of 94%. Seller's money=seller's expense.

My buyers only pay portions of commission when it's a "below my minimum commission. FSBO or just a below 2.5% or 3% pending time frame of service."

Buyers - buyer is paying for everything. It may or may not be built in the price but without the buyer pulling the trigger, no body gets paid anything.

They both do in my opinion .....it's which came first ....the chicken or the egg!

It's always the seller.

The market price generally has the commission rolled into the values so the seller pays the commission. 

Iin Indiana, the Seller pays the commission, as it is written into the contract. If it is a FSBO and the Seller doesn't want to pay the commission, the Buyer may pay it, if they REALLY want the home.

it's all part of the transaction and I think each party needs to understand that. 

I usually say the seller, but they get the money from the buyer, unless they have to bring money to the table, and so on and so on and so on.....

The closing agent writes the check.  They are the ones paying the commission.

Contracts can specify who pays. Usually the seller.

Our commission is taken out of the Sellers proceeds no matter who the seller is. (Bank, Estate, short sale).

Really?  Or Should I ask REALLY?

The buyer indirectly through the seller, but the seller dictates the rate.

Tony and Suzanne,
This is a bit of a theoretical question this early on a Monday morning. There can be a difference in who “pays” the commission vs. who “funds” the commission. In “theory” both seller and buyer split the cost because both “could” benefit if it weren’t charged. I’m off to find an easier question.

In the US it is often the seller foot the bill. See the listing agreement.

the buyer....it comes from the proceeds....

In the transfer of residential real estate ownership the official documents say, and is itemized on the listing agreement, exactly who pays the professional compensation.

Do you have ANY DOCUMENTS stating something different?

We all recognize one of the joy's of real estate is there are exceptions to nearly all the rules. 

And for your follow up question, I vote for the chicken.

Well, when we first started we were told the ones that bring the checks to the closing!

I think it is the seller.  I know the buyer brings the money; but they get the house.  The seller gets they money; but they pay the commission.

Reference needs to be made to the relevant agreements signed between the various parties involved in the transaction to see who pays the commission.

The perception is that the seller is paying the commission but the buyer is funding the transaction.

Everything is negotiable.

Whichever we put it, Tony and Suzanne Marriott, Associate Brokers - it is still buyers who has all the money!