📊 The data: We surveyed 915 local real estate agents and found the average real estate commission in Texas is higher than the national average of 5.49%. Our methodology explains how we crunched the numbers. |
5.70% is a pretty hefty chunk of change: You'd pay roughly $15,457 in realtor fees for a home worth $271,200 (the typical Texas home value as of November 2021).
The good news is you might now have to pay the full 5.70% rate: A population boom and few homes for sale put Texas sellers in a stronger position to negotiate realtor fees.
It's also worth considering Texas discount real estate brokerages, which can provide the same general services of a conventional realtor at a fraction of the cost.
Here's everything you need to know about Texas real estate commissions, including tips for negotiating rates and next steps if you’re getting ready to sell your home.
» JUMP: How Texas commission works | How to save | Next steps | FAQs
How Texas real estate commission works
Home sale price | $271,200 |
Commission (5.70%) | $15,457 |
Closing costs (1.2%) | $3,254 |
Net to seller | $252,489 |
The average cost to sell a home in Texas is close to 7% of the sales price - 5.70% for realtor commission and 1.2% for closing costs, which include transaction-related expenses like title services and transfer taxes.
Here's what you could pay in realtor commission at three different price points, based on the average commission rate in Texas:
Home sale price | Commission (5.70% rate) |
|---|---|
$250,000 | $14,250 |
$300,000 | $17,100 |
$350,000 | $19,950 |
Realtor commission in Texas: Key takeaways
Commission rates are negotiable: Everything in a real estate transaction is negotiable, including your agent's commission rate. Sellers can negotiate rates with an agent before signing a listing agreement. Learn more about how to negotiate commission rates.
Your fee covers everything you need to sell: Commission typically includes all the services and support you need to from listing through closing, including photography, online marketing, hosting open houses, showing the home, and negotiating offers.
Texas sellers are in a strong position to negotiate right now: A hot seller's market increases the competition for new listings among agents. Here's why the Texas market currently favors sellers:
- Texas has added 4 million people to its population since 2010, according to the U.S. Census. [1]
- Home buyers have few listings to choose from. Active Texas home listings are down 22.9% over the past year, falling the most in Dumas (-45.5% drop), College Station (-60.3%), and Uvalde (-62.0%).
- Homes sell fast in major cities: Homes sell in an average of 46 days across the Lone Star state, but much faster in Austin (37 days), Dallas (39 days), and Wichita Falls (37 days).
- Home values are rising: Prices are up 20.9% statewide and are expected to rise further in the coming year.
Here's where Texas home values are forecasted to rise the most in 2022:
Area | Projected increase |
|---|---|
Athens | 20.9% |
Killeen | 20.2% |
Dallas | 19.4% |
» MORE: What is realtor commission?
📊 Breaking down commission fees in Texas:
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How to save on Texas realtor fees
Here are strategies that can help you get a lower commission rate than the average 5.70% rate in Texas.
Shop around for the best value
Shop around to measure agent's experience, service, and personality verus price. This is likely the largest financial transaction of your life, so it's smart to interview a few realtors from different brokerages.
Price is important, but it's not everything: Choosing an inexperienced agent solely because they charge less could end up costing you a lot more than you save, in terms of the final sale price.
Sell your house with a discount real estate broker
If savings are a top priority, you should consider working with a discount real estate brokerage.
Discount brokerages offer built-in savings, with no negotiating required. Rates are as low as 1% – significantly lower than the typical 5.70% listing fee in Texas – and the best provide the same level of service as conventional realtors.
Top Texas discount real estate brokerages in 2022
Brand | Fees | Avg. savings* |
|---|---|---|
1% | $7,375 | |
1% | $7,125 | |
1.5% | $5,550 | |
2% | $3,750 | |
*Compared to a typical 3% listing fee at four price points: $100k, $250k, $500k, $750k | ||
» COMPARE: See our full breakdown and top picks for discount brokerages in 2022
Negotiate with an agent
Realtors are more likely to reduce their commission rate if they're confident they can sell your home quickly and for a high price.
Right now, Texas market conditions are favorable for negotiating commission rates, but no two houses or neighborhoods are the same. You have a better chance of securing a lower rate if you meet one or more of the following criteria.
Your home is in good condition
Well-maintained homes make for desirable listings that make great first impressions on buyers and sell quickly.
Signs of a well-kept home include:
Healthy landscaping, which adds to your home's curb appeal.
A roof with no leaks or damaged shingles.
Clean flooring and carpeting.
No funny odors, signs of mold, or high moisture levels in bathrooms or the crawl space.
You have a high-value home
A $300,000 listing at a 2% commission rate earns your agent much more than a $100,000 listing at a 3% rate – for roughly the same amount of work.
These Texas markets currently have the highest median list prices:
Market | Median list price |
Fredericksburg | $925,000 |
Austin | $550,000 |
Dallas | $400,000 |
You agree to buy with the agent as well
Agents are more likely to offer you a discount if you also use them to purchase a new home – a "list-buy" deal means double the commission for your agent.
You can send more business their way
Real estate agents love referrals because they get new prospective clients without any additional effort.
Agents invest a huge amount of time and energy into marketing themselves to drum up new business. Referring friends, family, or acquaintances saves your realtor money and helps them grow their business, which gives you leverage in negotiations.
⚡Quick tip: Listing agents may be more willing to offer a lower rate if they know you’re shopping around. Let the agents you talk to know you’re interviewing multiple candidates – they might just offer a lower rate up front to be more competitive. |
» MORE: How to negotiate commission rates in Texas
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, so they will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best combination of experience, personality, and price for your specific needs.
Learn more about your market from an expert: Realtors can provide local data like what similar homes in your area are selling for, how quickly they’re going under contract, 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 homebuyers.
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).
Read more about selling your home
Still learning about the process and weighing your options? Check out these additional guides for home sellers in Texas:
Explore realtor alternatives
There are other ways to sell your house besides listing with an agent. Learn more below:
Methodology
Our data on Texas commission rates is based on a survey of 915 of our partner agents from across the country, 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: Based on Zillow data as of November 2021
- Months of inventory, list prices, and time on market: Based on Realtor.com data as of November 2021
We last surveyed Texas real estate agents in May 2021, and we're in the process of updating our data.
Texas realtor commission FAQs
2020 U.S. Census. "2020 U.S. Census." Accessed (December 27, 2021). Updated (August 25, 2021).