Commission Calculator Texas 2021

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The average real estate commission in Texas is 6%, but it often ranges between 5% and 6% Commissions in Texas are paid by the seller of the home. The home seller will pay both the selling agent and the buyer's real estate agent. In Texas, real estate commissions are usually split 50/50, with 50% going to the seller, or listing agent, and 50% going to the buyer's agent.

Texas Real Estate Commission Calculator

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How Much are Real Estate Commissions in Texas?

According to Clever, which sources data from local agents, the average real estate commission in Texas is 5.65% in 2021. Commissions in Houston are slightly lower at 5.45%, while commissions in Dallas are higher at 5.71%.

Average Real Estate Commission in Texas

TexasDallasHouston
Average Commission5.65%5.71%5.45%
Average Home Price$224,000$244,000$204,000
Source: Clever and Zillow

How can you reduce the commissions that you pay when you sell a home in Texas?

Negotiating with your listing agent might yield a lower commission rate, however, not all agents are willing to negotiate. Some discount real estate brokers offer low commission rates in Texas, either charging a low percentage or a flat-fee. These discount brokers may provide full-service, or they may offer limited-service. Some discount brokers in Texas charge a commission as low as 1%, or they might charge a flat-fee. This listing fee can range from $3,500 to $5,000. Some discount brokers also provide cashback or a buyer rebate.

There are also MLS listing services in Texas that only charge a flat-fee. These for sale by owner (FSBO) offerings mean that you will have to manage the entire home selling process, including dealing with agents and buyers, staging your home, and negotiating.

Some listing services may also provide other limited services, such as providing market analysis which will help you when pricing your home. While you can save thousands of dollars on commissions that would otherwise be paid to a selling agent, you still need to pay the buyer's agent. This would be around 3% of the home's selling price.

Who regulates real estate agents in Texas?

Real estate agents in Texas are licensed by the Texas Real Estate Commission. A real estate agent may provide a cash back rebate to the buyer or the seller.

If I refer a client to a real estate agent, can I receive a referral fee?

If you do not hold a real estate license in Texas, you may receive a referral fee for referring a client to a real estate broker up to a certain limit and with restrictions.

Under Texas state law, you may only receive $50 or less as compensation for a referral. The $50 award must also not be considered valuable consideration. This means that a $50 gift card, such as a certain restaurant or store, would be allowed. A $50 prepaid credit card, or $50 in cash, would not be allowed. Any credit towards rent would also not be allowed.

Can an attorney who represents a buyer receive part of a listing agent's commission in Texas?

An attorney in Texas cannot receive compensation from the listing agent for representing a buyer. The attorney can only receive compensation if they themselves hold a real estate license

Any calculators or content on this page is provided for general information purposes only. Casaplorer does not guarantee the accuracy of information shown and is not responsible for any consequences of its use.