In buyer broker compensation, what happens to the fee paid by the seller?

In the context of buyer broker compensation, the fee paid by the seller is often credited against the buyer's fee. This is a common practice in real estate transactions where the seller typically agrees to pay a commission that is then shared with the buyer's broker. When the buyer's broker receives a fee from the seller as part of the transaction, it effectively reduces the financial burden on the buyer for their own broker's services.

The crediting of the seller's fee helps facilitate the partnership between buyers and their brokers by making professional representation more accessible. This means that the buyer might only need to pay the difference if the total commission exceeds the amount covered by the seller's contribution. Understanding this process is crucial for buyers as it can influence their overall costs and the dynamics of their negotiations with brokers.