Published
-
Written by
-
Edited by Josiah Wilmoth
Written by Jamie Ayers
Edited by Josiah Wilmoth
What’s a fair realtor fee in Texas? | How much does commission cost? | Who pays realtor fees? | Budget-friendly tips to save on realtor fees
The average realtor commission in Texas is 5.59%, which equates to a typical realtor fee of $16,453 for an average home in the state.
Knowing the standard commission rate in your area can help you avoid overpaying for a realtor and accurately estimate costs when you sell your home.
You might be thinking, “Wow! Texas is a lot of money!” Well, luckily there are companies like our friends at Clever Real Estate that offer listing fees as low as 1.5% in Texas.
Finding your agent through Clever could save you thousands. Clever’s free service matches you with the best local realtors from top regional and national brands, like Keller Williams and RE/MAX. You get the same full-service experience — but for a fraction of the typical cost.
💰 SAVE: Find a top local agent and get a 1.5% listing fee!
What is a fair realtor commission fee in Texas?
Since realtor commission is negotiable in Texas, what’s fair ultimately comes down to whatever rate you and your agent are comfortable with.
That said, most Texas realtors expect a total commission rate of around 5.59% — the statewide average. That Texas fee is split between the listing agent, who represents the seller, and the buyer’s agent, who represents the buyer.
It’s also worth noting that rates often don’t vary that much from agent to agent — most realtors charge rates that are inline with whatever’s typical in their area. In Texas, our data showed that a majority of realtors charge between 4.63%–6.54%.
| Commission rate | Percentage | Cost* |
|---|---|---|
| Low tier | 4.63% | $13,628 |
| Texas average | 5.59% | $16,453 |
| High tier | 6.54% | $19,250 |
So why does realtor commission cost so much in Texas? Well, there are a couple of factors:
- Agents split their commission – The listing agent typically only takes home a fraction of the realtor fees.
- Listing a home involves risk – Realtors pay upfront for marketing costs (e.g. professional photos, advertising, staging, etc) and only get paid when your home sells.
- Finding clients can be hard and costly – Real estate agents spend time and money generating new business, an expense that’s often passed along to home sellers.
Luckily, most Texas home sellers can avoid paying the full 5.59% commission rate.
Some real estate companies — like our friends at Clever — aim to make agents’ jobs easier so that they’re able to charge lower rates without sacrificing any hands-on service. By matching home sellers directly with realtors, Clever is able to reduce the cost of acquiring clients and negotiate lower realtor fees.
Sellers who work with Clever get agent matches from well-known brokerages like Century 21 and Berkshire Hathaway — and pay just a 1.5% listing fee when their home sells!
How much do realtor fees in Texas cost?
Realtor fees in Texas typically cost around 5.59% in total. This includes both the listing fee and buyer’s agent fee.
Here’s how much the average Texas home seller can expect to pay in realtor fees at different price points:
| Home sale price | Avg. Texas realtor fee |
|---|---|
| $100,000 | $5,590 |
| $250,000 | $13,975 |
| $500,000 | $27,950 |
| $750,000 | $41,925 |
Realtor fees are generally paid by the seller out of their proceeds at closing. You typically don’t owe your agent anything until your house sells.
Here’s how much the average Texas seller would pay in commission fees and closing costs on the sale of a median-priced home:
| Category | Amount |
|---|---|
| Home sale price | $294,336 |
| Realtor fees | -$16,453 |
| Seller closing costs | -$3,650 |
| Mortgage payoff | -$31,510 |
| Seller net | $262,078 |
How are realtor fees split in Texas?
When you sell a home with a realtor in Texas, your listing agent will typically take home 1.355% of the total sale price.
Less than you thought, right? Even though the typical realtor fee in Texas is 5.59%, that money is actually split between your agent, the buyer’s agent, and each of their brokers.
Here’s an example of how commission is often split on a sale in Texas:
| Category | Percentage |
|---|---|
| Seller's agent take home | 1.355% |
| Seller's agent's broker split | 1.355% (~50% of the seller's agent's commission ) |
| Buyer's agent take home | 1.44% |
| Buyer's agent's broker split | 1.44% (~50% of the buyer's agent's commission ) |
| Total commission | 5.59% |
Who pays realtor commission in Texas?
In Texas, the home seller typically pays the realtor fees for all agents involved in the sale. This is the standard nationwide.
Realtor fees are baked into the price of the home and are paid out of the proceeds when it sells. So home sellers don’t have to pay real estate commission up front; the agents get their cut when the deal closes.
Why are sellers responsible for paying the buyer’s agent commission? Think of it as a marketing cost for your home. By offering a competitive buyer’s agent commission, you give realtors an incentive to show your home to their clients.
How to save on realtor fees in Texas
The average home seller in Texas will pay around $16,453 in realtor commissions. But there are several ways that you can get a lower rate and keep more of your hard-earned equity in your pocket when you sell your home.
- Use a discount brand like Clever that offers built-in savings
- Negotiate lower rates yourself
- Sell for sale by owner (FSBO)
Work with a discount brand like Clever
The best way to save on realtor fees in Texas is to sell with a discount real estate broker that offers full service at lower rates.
Our top pick is Clever Real Estate, a free service that matches home sellers with top agents in their area for pre-negotiated low rates. You’ll get matched with local agents from trusted brokerages like Century 21 and RE/MAX.
Sellers who work with Clever can sell for a low 1.5% listing fee — compared to the 2.71% fee that most Texas realtors charge. You’ll receive full service and support from your agent, saving you thousands on realtor fees without any trade-offs. Interview as many agents as you want until you find the right fit, or walk away at any time with no obligation.
Negotiate a lower realtor fee on your own
As a Texas home seller, you can always try to negotiate a lower commission yourself — you don’t have to just accept whatever rate an agent quotes you.
Right now, Texas homes are selling at a faster pace than the national average, and listing prices have gone up nearly 10% compared to the same time in 2020. There isn’t much inventory in the state either, so prospective buyers are competing for a small pool of homes. All in all, this is a hot market that favors sellers.
That said, there are still agents who aren’t accustomed to reducing their fees. And in many cases, agents are required by their brokerages to charge certain rates. So while it never hurts to ask, be aware that you may not be able to negotiate a large discount with your realtor.
» MORE: How to negotiate your real estate commission
Sell without a realtor
Selling your home for sale by owner (FSBO) in Texas lets you avoid paying the listing agent’s fee, effectively halving the cost of commission compared to selling with a traditional realtor.
While the potential savings look great, there are many risks that come with selling a home without an agent.
FSBO sellers take on a lot more work than regular home sellers. You’ll have to attract buyers, negotiate offers, list your home on the MLS, and navigate legal paperwork. You’ll also miss out on the local market expertise that top real estate agents provide, which is critical when trying to sell for as much as possible.
In fact, research shows that FSBO homes sell for 5.5% less on average than agent-represented homes. So while you may save 3% by cutting out the listing agent’s fee, you could lose more than that if your home sells for less than market value.
» MORE: How to sell a house without a realtor in Texas
Methodology
Data on commission rates comes from a survey of over 900 agents conducted by our partner site, Clever Real Estate.
To create this review, our Research Team conducted an in-depth analysis of realtor commission trends in Texas, consulting national and state resources including the National Association of Realtors (NAR) and the Texas Real Estate Commission (TREC).
Data on commission rates comes from a survey of over 630 agents conducted by our partner site, Clever Real Estate. This survey was conducted in 2022 and is updated annually by Clever’s Research Team.
Average home value data is based on Zillow data from August 31, 2022. Average mortgage debt data is sourced from the Federal Reserve Bank of New York. Annual realtor earnings are sourced from The Bureau of Labor Statistics.
FAQs about realtor fees in Texas
Are realtor fees negotiable in Texas?
Yes, realtor fees are negotiable in Texas — just like they are anywhere else in the United States. That said, while you can always try to negotiate a lower rate with your agent, many agents won't be willing to budge on their fees. Most sellers will find better rates by working with a real estate brokerage that offers built-in discounts.
What percentage do most realtors charge in Texas?
Most realtors in Texas charge a total commission rate of 5.59%. This rate is split between the listing agent and the buyer's agent. Listing agents in Texas typically receive 2.71%, and buyer's agents receive 2.88%. Budget-conscious Texas home sellers can get a lower rate by working with a low commission real estate broker like Clever, Redfin, or SimpleShowing.
Who pays the realtor commission in Texas?
Sellers are responsible for paying realtor commission in Texas, with the average commission fee being around 5.59%. The commission fee is generally taken out of the seller's proceeds at closing — so there are no up front costs required.
How much are realtor fees for a home buyer in Texas?
Home buyers generally aren't responsible for paying realtor fees, in Texas or anywhere else in the U.S. Sellers typically pay the realtor commission for both the seller's agent and the buyer's agent. But Texas buyers may be eligible for a commission rebate that puts cash back in their pocket when they buy a home.
How much do realtors make on a typical sale in Texas?
On a typical home sale in Texas, the real estate agent that lists the home will take home around $3,500, based on the median home value in Texas as of May 2022, and assuming they split half of their commission with their broker. Put another way, Texas realtors take home about $1,400 for every $100,000 in sale price.
How much do realtors earn in Texas per year?
Real estate agents in Texas make $59,250 per year on average according to the Bureau of Labor Statistics, which is $10,480 more than the national average.
Related links
9 steps to selling a home in Texas: Getting ready to sell a home in Texas? Here’s a complete step-by-step guide to navigating the Texas home sale process.
How much does it cost to sell a house in Texas?: Learn how much you’ll need to budget to sell a property in Texas, and determine what home upgrades and repairs are worth tackling before you put your home on the market.
How to sell a house without a realtor in Texas: If you’re thinking of selling your house without a realtor in Texas, read this in-depth guide first. You’ll learn about specific Texas regulations, what costs to expect, and common pitfalls to watch out for.
Leave a Reply