How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
We surveyed local agents and found that the average real estate commission in Texas is 5.59%, which is higher than the national average of 5.37%.
The average total real estate agent commission rate in Texas is 5.59% of the final sale price. Based on the latest median home sale price in Texas ($300,090), that translates to a total cost of roughly $16,775.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Texas, the average listing agent fee is 2.71%, while the average buyer’s agent fee is 2.88%.
Real estate agent commissions make up a significant portion of the closing costs for Texas home sellers. But you don't have to pay the full 5.59% to a traditional agent. If you're selling a home in Texas, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 31% on realtor fees, or about $5,132 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in Texas
| Average listing commission | 2.71% |
| Average buyer's agent commission | 2.88% |
| Total average commission | 5.59% |
There are usually two real estate agents involved in the real estate transactions of a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average real estate commission paid in Texas for listing agents is 2.71% of the final home price and 2.88% for buyer's agents, for a total of 5.59%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Texas
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Texas. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Who pays realtor fees in Texas?
When selling a home in Texas, the real estate agent commissions for both the seller's and buyer's agents are deducted from the final sale price. You don't have to pay these fees upfront.
The seller's agent earns their commission by providing services such as market analysis and handling the closing process. The buyer's agent earns their commission by bringing a qualified buyer who meets the contract terms and closes on time.
You don't have to pay these commissions out of pocket. Like closing costs, the real estate agent commissions are taken out of the sale proceeds when the transaction closes.
If you want to reduce your realtor fees, Clever can connect you with a top local listing agent charging just 1.5% commission. This will allow you to keep more money from the sale in your pocket.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Why do sellers pay the buyer's real estate agent commission?
Offering to cover the buyer's agent commission can attract more potential buyers to your listing.
Paying this fee makes your home more appealing to buyers, since they won't have to cover their agent's commission upfront along with the down payment and closing costs. Many buyers can't afford these extra upfront fees.
When you make a competitive offer on the buyer's agent commission, real estate agents are more motivated to show your home to their clients. This can increase your chances of getting multiple offers. Real estate experts recommend advertising a buyer's agent commission within 0.5% of the local norm, which is 2.88% in Texas.
Will the NAR lawsuit change how real estate commission works?
A November 2023 lawsuit found the National Association of Realtors (NAR), Homeservices of America, and Keller Williams Realty guilty of misleading sellers into paying high realtor fees.
The judge agreed with the plaintiffs that sellers should not be on the hook for the buyer's agent commission. It's too early to tell if this decision will change how buyer's agents are paid. We're monitoring the appeal in this case as well as other lawsuits and will keep you updated.
» READ MORE:
How to save on realtor fees in Texas
Commission rates are not set in stone. In fact, we found that while 2.71% is the average in Texas, rates typically fall between 4.63% and 6.54%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.23%– 3.19% |
| Buyer's agent commission | 2.40%– 3.35% |
| Total commission range | 4.63%– 6.54% |
Can I negotiate realtor commission in Texas?
Real estate commission is always negotiable. In Texas, the 55 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who also plan to buy with you | 75% |
| Homeowners who are repeat clients | 69% |
| Homeowners with more than one property to sell | 69% |
| Seller’s situation (e.g. divorce or death in the family) | 47% |
| Higher property values | 44% |
| High competition for clients | 40% |
| Homes expected to sell quickly | 27% |
| High buyer demand in the area | 20% |
| Highly experienced home sellers | 15% |
| Houses in excellent condition | 15% |
| Periods of low housing inventory | 15% |
Negotiating realtor fees in Texas depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The Texas housing market |
|
While your personal situation may vary, the real estate market conditions in Texas will impact all home sellers in the area.
Generally in a seller's market, where home sellers have more leverage than buyers, listing agents' jobs are easier so they may be more open to reducing their commission rates. The opposite is often true in a buyer's market.
If you're not comfortable negotiating with a realtor, avoid the awkward conversation - let Clever pre-negotiate a lower rate with a top local agent for you.
To assess the current state of your local real estate market, look at these three factors:
- Months of inventory
- Sale to list price
- Home value trends
If all factors indicate Texas is a seller's market, you may be in a good position to negotiate a lower commission rate with your agent. If market conditions are mixed or favor buyers, it may be tougher to get your realtor to accept a cheaper fee.
The current state of the Texas real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 2.0 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 97.12% of their listing price | Buyer's market |
| Home values | Home values have risen 36.53% year over year | Seller's market |
Low commission real estate companies in Texas
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Availability
Listing Fee
Customer Rating
Overview
Pricing
Reviews
Contact
Overview: Clever is our top pick in Texas for home sellers looking to save on realtor commission without sacrificing service.
✅ Benefits and features: Clever gets you discounted rates (up to 50%) from non-discount realtors. Plus Clever’s matching service is highly rated and free to use with no obligation.
🏠 How it works: Clever matches you with top local realtors from major brokerages like RE/MAX and Compass. You compare options to find the best fit and get the special 1.5% listing fee (same as Redfin) no matter who you choose.
Pros
- Sell with a traditional agent from a name-brand brokerage (not a discount agent)
- Agents work for up to 50% off their typical rate when you go through Clever
- Most agent selection by far — choose from hundreds of top Texas realtors
Cons
- No guarantee you’ll be able to work with a specific agent or brokerage you have in mind
- Add-ons like professional staging, drone photos, and 3D tours may cost extra (agents will break down what’s included during their listing presentation)
Fee structure
- 1.5% listing commission ($3,000 min.) paid at closing
- 2–3% buyer’s agent commission paid at closing
| Weighted avg. | 5.0 | 2,627 |
| Trustpilot | 5.0 | 2,402 |
| 4.8 | 225 |
Website: listwithclever.com
Phone: 1-833-225-3837
Hours: 8 a.m.–10 p.m. EST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, St. Louis, MO 63130
Availability
Listing Fee
Customer Rating
Overview
Pricing
Reviews
Contact
Overview: Redfin’s discount real estate service offers a decent value overall for most Texas home sellers.
✅ Benefits and features: Redfin’s 1.5% listing fees can net you solid savings, and you can get an additional 0.5% listing fee savings if you sell and buy with Redfin within 12 months. Redfin is also a large, well-established brand with more discount realtors to choose from than many local discount real estate brokers.
🚩 Potential red flags: Redfin’s tech-centric and team-based approach to selling isn’t for everyone. Redfin conducts most of the process remotely, and you work with a Lead Agent and a back-office team. Redfin also has minimum fees of $2,000–$5,500 in Texas, depending on which market you're selling in. This means if your home is below a certain price point, you’ll pay slightly more than the advertised 1.5% listing rate.
Pros
- Good listing fee savings
- Established brand and decent agent selection
- Tech-forward approach may appeal to some sellers
Cons
- Slightly higher minimum fee vs. other Texas options
- Less agent selection than Clever
- High-volume, team-centric approach may not be for everyone
Fee structure
- 1.5% listing fee ($2,000–5,500 min. in Texas) at closing
- 2–3% buyer’s agent commission at closing
- 0.5% listing fee refund if you also buy within 12 months
- Minimum fees by market:
- Austin: $5,500
- Dallas: $4,500
- El Paso: $2,500
- Houston: $3,500
- San Antonio: $3,500
- South Texas: $2,500
- All other Texas markets: $2,000
*Not enough available data at this time
Website: redfin.com
Phone: 1-844-759-7732
Hours: 8 a.m.–5 p.m. CT, 7 days a week
Address: 2611 Internet Blvd, Suite 200, Frisco, TX 75034
Areas served: Austin, Dallas, Fort Worth, Frisco, Houston, Katy, McKinney, Plano. San Antonio, and more
Availability
Listing Fee
Customer Rating
Overview
Pricing
Reviews
Contact
Our take: If you're selling a house in Texas and buying your new home in the greater Dallas-Fort Worth area, Team Nelson is a discount realty company that can save you some money.
✅ Benefits and features: If you also buy with Team Nelson, the company will list your home for 0%, which means thousands in savings. The company also has great customer reviews and a stellar sales history.
🚩 Potential red flags: If you're selling but not buying, Team Nelson doesn't offer a discount listing fee. Team Nelson is also smaller than larger companies like Clever and Redfin, so there are fewer agents to choose from.
Pros
- Best overall savings if you sell and buy
- Highly rated by customers
- High sales volume in the DFW area
Cons
- Savings only available if you buy and sell in the DFW area
- Less agent selection than brands like Clever and Redfin
Fee structure
- 0% listing fee (if you also buy with Team Nelson)
- 3% buyer’s agent commission at closing
Website: https://yourhomefree.com/
Phone: (972) 317-5900
Address: 2611 Cross Timbers Rd #100, Flower Mound, TX 75028
Areas served: Greater Dallas-Fort Worth area
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Texas's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 623 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of August 2023
- Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2023
