How commission works | How to save on commission | The current Texas housing market | The best low commission companies | Methodology
📊 The data: We surveyed local agents and found that the average real estate commission in Texas is 5.78%, which is higher than the national average of 5.50%. |
That means, to sell an average Texas house worth $252,400 you’ll pay about $14,600 in realtor fees.
Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 5.78%.
Selling with a discount real estate company like Clever could help you save thousands on commission. Clever negotiates 1% listing fees with full-service Texas realtors from top brokers.
On that same $252,400 home — you'd pay just $10,400, up to 29% less than paying average rates.
» SAVE: Sell with Clever for 1% listing fees and save thousands in commission!
Below, we cover everything you need to know about Texas real estate commission fees and share tips on how to save more when you sell.
How real estate agent commission works in Texas
There are usually two real estate agents involved in 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
Both agents earn a percentage of the home's final price when the sale closes. This payment is called real estate agent commission, and it's baked into the sale price when you sell your home.
Based on our research, the average commission split in Texas has 49.3% of the commission going to the listing agent and 50.7% going to the buyer's agent.
» LEARN: How do real estate commissions work?
Who pays realtor fees in Texas?
In Texas, home sellers pay real estate commission fees out of the final sale proceeds for both agents involved in a deal.
However, since this commission is baked into the sales price, you could say that the home buyer is paying — at least in part — through a higher price.
» LEARN: Who pays realtor commission?
How to save on real estate commission in Texas
💰 Best ways to save on commission:
|
Keep reading to learn how you can negotiate cheaper rates or find low commission companies that negotiate lower realtor fees for you!
Tips for negotiating realtor commission in Texas
Whether you’re selling a sprawling family home in suburban Dallas, a stylish condo in Austin, or an investment rental in Houston, you should always try to negotiate a lower commission rate.
Negotiating a lower realtor percentage 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 will obviously vary, Texas real estate market conditions will affect all home sellers in your area.
In general, in a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more willing to lower their commission rates. The opposite is usually true in a buyer's market.
» LEARN: Find our top tips for negotiating lower commission fees
To judge the current state of your real estate market, look at these three factors:
- Months of inventory ⓘ
- Sale to list price ⓘ
- Home value trends ⓘ
If every factor points to Texas being a seller's market, then 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 more challenging to persuade your realtor to accept a cheaper fee.
The current state of the Texas real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 1.0 months of housing inventory on the market | Seller's market |
Sale-to-list ratio | Homes are selling for 101.50% of their listing price | Seller's market |
Home values | Home values have risen 16.1% year over year | Seller's market |
» FIND: The average commission rates in more Texas cities:
Find a top realtor in Texas
Ready to negotiate with an agent in your area? We looked at the data and found the top Texas agents for you.
» FIND: The best Texas realtors by city
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.
These are some of the top discount and flat-fee MLS services in Texas.
The top discount real estate companies in Texas
Discount real estate companies typically offer full-service support for a reduced commission percentage or flat rate. Like traditional agents, these agents are fully licensed and have met all of the requirements of the Texas real estate commission board. How they create those discounts will depend on the company's model, with some creating more risks and tradeoffs than others.
Clever Real Estate
Learn More💲 Listing Fee
$3,000 or 1%
💰 Avg. Savings
$7,375
⭐ Avg. Customer Rating
4.9/5 (1,143 reviews)
Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.
- Free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX
- Provides multiple agent matches so you can interview, compare marketing plans, and choose the best fit
- Pre-negotiates low rates on your behalf — you get full service for a flat $3,000 listing fee, or just 1% if the home sells for more than $350,000
- If you buy with Clever, you could get a check worth up to 0.5% of the home price
- You may not get matched with an agent from your preferred real estate brokerage.
- Agents may not provide premium services like drone photography and professional home staging.
As of April 2, 2021, Clever has a 4.9 out of 5 rating on Trustpilot, based on 974 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states, Puerto Rico, and Washington, DC.
Redfin
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$5,550
⭐ Avg. Customer Rating
3.2/5 (287 reviews)
Redfin offers real savings and a proven brand. But sellers could compromise on service — especially agent experience and availability.
- If you buy and sell with Redfin, you'll get a 0.5% listing fee discount
- Redfin gives its listings premium placement in its popular home search app
- If finding the right agent is a top priority, you'll have limited options — Redfin only has a few agents in each of its markets
- Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service
Redfin has a 3.2 out of 5 rating (287 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
Redefy
Full Review💲 Listing Fee
$3,500 (1% above $1M)
💰 Avg. Savings
$8,500
⭐ Avg. Customer Rating
4.6/5 (345 reviews)
Redefy’s flat fee could offer big savings. But hands-off service and non-refundable upfront fees make it a hard sell over other, less risky options.
- Flat $3,500 listing fee is an excellent value for higher-priced homes
- Agents provide more in-person services than some similarly-priced low commission brands
- Redefy charges an upfront, non-refundable $500 fee (most companies don't make you pay anything until your house sells)
- Your agent will not host an open house for you
Redefy has a 4.6 out of 5 rating (345 reviews) across popular review sites like Google and Zillow.
Redefy is available in the following areas: CO, FL, GA, IL, NC, SC, TN, TX, VA.
SimpleShowing
Full Review💲 Listing Fee
1% (min. $3,500)
💰 Avg. Savings
$7,125
⭐ Avg. Customer Rating
4.9/5 (284 reviews)
SimpleShowing’s commission savings are solid — but you may compromise on agent selection and hands-on service.
- SimpleShowing is one of the only true 1% commission companies
- It also offers one of the largest home buyer rebates of any low-fee brokerage
- Very few options when it comes to selecting your agent
- Agents handle more customers than the average realtor, which could impact service quality
SimpleShowing has a 4.9 out of 5 rating (284 reviews) across popular review sites like Google, Trustpilot, and Zillow.
SimpleShowing is available in the following areas: FL, GA, TX.
» LEARN: How do discount real estate brokers offer lower fees?
The top flat-fee MLS listing services in Texas
Flat-fee MLS services list your home on your local MLS for a low fee, often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, or simply don't have the time to sell your home without a realtor, this might not be a good option.
Congress Realty
Congress RealtyBest For
Sellers who want a lot of a-la-carte options
Price Range
$299
Pros:
- Congress Realty has a phone system that forwards any phone calls about your listing directly to you.
- You can request a free Comparative Marketing Analysis if you want a better idea of what homes in your area have sold for recently.
Cons:
- Congress Realty costs a lot more than competitors with similar MLS packages.
- You have to pay an extra $50 if you want more than four photos in your listing.
Creekview Realty
Creekview RealtyBest For
Sellers who might still sign with a full-service broker.
Price Range
$495
Pros:
- Your listing comes with a yard sign and key lock box — features most companies charge extra for.
- You can upgrade to a flat fee full service plan with the same company.
Cons:
- The entry level package is more expensive than similar MLS listings from other companies.
- The company doesn't provide much information about how many photos you can add to your listing or how often you can make changes to it.
» MORE: What you need to know about flat-fee MLS services.
Learn more
The Lone Star State has a lot to offer — from icons of Texas culture ranging from Tex-Mex to ten gallon hats to its extremely business-friendly, low-tax, low-regulation government. Plus, there's plenty of room for residents to make their homes; it’s the second-largest state in the U.S., trailing only Alaska.
The housing market in Texas is thriving, and median home values have more than doubled over the past decade. A lot of this is due to the state's overall economic boom: Texas's job market is growing at a much faster rate than the national average, and in-migration is triple the national average. With all these people coming to Texas, and so many jobs to go around, buying into the Texas market is a great bet.
Commission is one of the largest individual costs of selling a home, so it’s understandable you’d want to reduce it as much as possible. Clever pre-negotiates a low commission rate of only 1%, or a flat fee of $3,000 if your home sells for less than $350,000, and they partner with the top agents in Texas. Get in touch with Clever today to find out how they can save you thousands!
Methodology
Our data on commission rates is based on a survey of 915 of our partner agents, in which we asked for typical rates for both buyer's and seller's agents in their area.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of July 2021
- Sale prices and sale-to-list ratios: Based on Redfin data as of April 2021 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of August 2021