Who typically negotiates the commission fees in a real estate transaction?

In a real estate transaction, the commission fees are typically negotiated between the seller and the broker. This is because the broker represents the seller's interests and is responsible for marketing the property, negotiating offers, and facilitating the sale process. The commission is usually determined as a percentage of the final sale price and is agreed upon before listing the property.

While buyers may have input or preferences regarding the overall cost of the transaction, they do not typically negotiate the commission directly with the seller's broker. The state real estate board oversees licensing and regulatory matters but does not participate in individual transaction negotiations. Similarly, a property appraiser's role is to assess property value rather than negotiate fees, making them unrelated to the commission discussion. Understanding this framework clarifies the roles of those involved in a transaction and highlights why the seller and the broker are the key figures in negotiating commission fees.