This is sure to spark some debate.

I am in the camp that believes that broker's fees and/or commissions are paid "from the proceeds of the transaction."

On the one hand, the Seller often contracts with a Listing Brokerage to pay a specific commission. Often, that commission includes a co-op fee for a Buyer's Agent.

At Settlement, the Seller is often charged those fees.  But in most cases, it was the Buyer who paid the Seller an agreeable price allowing the Seller to cover those fees. So, it could be said that it is the Buyer who gives the Seller the money to pay those fees.

Then again, consider the Seller who has enough cash or possibly equity, that they pay those fees without using the Buyer's money.

And, for example, there may be a For Sale By Owner who is unwilling to pay any fees to any agent. The Buyer may then pay those fees themselves.

Who do you believe ultimately pays the fees? How does it work in your state? As a Buyer's Agent, do your clients ever pay you directly? If so, what happens to the co-op fee being offered by the Seller?

When representing a Buyer on a For Sale By Owner purchase, do you discount the market analysis to show the Buyer what the market value of the home should be without real estate fees?

Would you consider market value to be a discount of the total amount of fees from both sides of the transaction, or just the amount that your client would be responsible to you for?

Since this is an active network, I thought I would throw this one out there to see the different responses.