Commission Calculator Texas 2024

This Page Was Last Updated: March 23, 2023
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For a property that is sold for $500,000Total Commission: $28,500Seller's Agent Receives: $14,250Buyer's Agent Receives: $14,250

What You Should Know

  • Real estate agent commission in Texas is usually around 5% - 6%, with an average commission of 5.75%.
  • A home seller usually pays a commission for both the seller’s and the buyer’s agents.
  • The total commission is split between the buyer agent, the seller agent, and their respective brokerages.

Real Estate Commission in Texas

The average real estate commission in Texas is around 5.75% in 2023, with slight variability in the commission between the cities. For example, commissions in Houston are slightly lower at 5.45%, while commissions in Dallas are higher at 5.85%.

Average Real Estate Commission in Texas

Average Commission5.75%5.85%5.45%
Average Home Price$314,700$298,400$340,200

How to Reduce Real Estate Commission in Texas?

There are a few ways how a buyer and a seller can reduce real estate commission they pay. Even though a buyer does not technically pay a real estate commission in Texas, they pay for the house and finance the whole transaction. They can get a small discount on a property by asking for a commission rebate from their real estate agent. The other strategies can be used by the seller to reduce real estate commission:

  • Fee Negotiation: Your listing agent might yield a lower commission rate if you negotiate. You may also find discount real estate brokers who offer commission rates as low as 1% in Texas. These discount brokers may provide full service, or they may offer limited service, which may affect the deal and final price of the property.
  • Flat-Fee FSBO Listings: There are also MLS listing services in Texas that only charge a flat fee. These for-sale-by-owner (FSBO) offerings mean you must 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. This commission oversees real estate agents and the Texas real estate markets. They provide various educational resources to real estate agents, and they also issue real estate market reports for people to use.

Can I Receive a Fee for a Referral?

Under Texas state law, you may only receive $50 or less as compensation for a referral if you are not a licensed real estate agent. The $50 award must also not be considered valuable consideration. This means a $50 gift card, such as a certain restaurant or store, would be allowed. A $50 cash, prepaid credit card, or other cash equivalents are not allowed.

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.