Commission Calculator Texas 2023

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Texas Real Estate Commission Calculator

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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. You can also use the Texas Mortgage Calculator to estimate how much it would cost to get a mortgage in Texas including closing costs and commissions.

What You Should Know

  • The commission paid to the real estate agents in the U.S. is typically 5%-6% of the house’s sale price
  • The seller is the one who pays for both the commission of the seller agent and the buyer agent
  • The total commission is split between the buyer agent, the seller agent, and their respective brokerages
  • Different U.S. states may have different commissions for real estate agent
  • Real estate agents generally share some of the commission they earn with their brokerage they work for, which is usually in a ratio of 60:40

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

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

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