Realtor Commission in Texas | Updated for 2022

Steve Nicastro

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Steve Nicastro

September 1st, 2022
Updated September 1st, 2022

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📊 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 Texas real estate commission is 5.59% and the seller typically covers this fee, which gets deducted from their sale proceeds at closing. It translates to roughly $17,599 in realtor commission to sell a home worth $314,837 (the typical home value in Texas).

The good news is you might not have to pay the full 5.59%. Home sellers can use discount real estate brokerages to save on commission. Discount brokers offer built-in commission savings, and often provide similar services as conventional realtors.

Here's what to know about Texas real estate commission, including how to save, tips for negotiating with agents, and next steps if you need to sell your home.

How much are realtor fees 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 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 commission rate 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 commissions work?

Realtor commissions are typically the most expensive fees Texas home sellers pay during the closing process. But there are a few ways that you can reduce the amount you spend on realtor fees.

One option is to try to negotiate a lower commission rate with your realtor. You can also avoid realtor fees altogether by selling your house without a realtor— but this can be a time-consuming and risky process.

For most sellers, the best way to save on realtor commissions is with a real estate brokerage that offers pre-negotiated reduced rates. For example, Clever Real Estate matches sellers with top-rated agents from brokerages like Century 21 and RE/MAX, and negotiates a low 1% listing fee on your behalf.

Sellers who work with Clever can save thousands on realtor commissions. Interview as many agents as you want until you find the right fit, or walk away at any time!

💰 Get a lower rate with a top Texas agent!

Want to find a top local agent in Texas without overpaying on realtor fees? Clever negotiates 1% listing fees with top-rated Texas real estate agents from trusted brokerages like Keller Williams, RE/MAX, and Berkshire Hathaway.

Get guaranteed full service for a fraction of the 2.71% rate Texas agents typically charge. Schedule a free, no obligation consultation with a top local agent today!

Texas realtor commission calculator

Use this Texas realtor commission calculator to estimate how much you'll pay in real estate commission fees when you sell your home in Texas. You can use the following average commission rates, or insert different rates if you already know how much your agent will charge.

  • Average Texas listing agent commission rate: 2.71%
  • Average Texas buyer's agent commission rate: 2.88%

How realtor fees in Texas work

When you sell a home in Texas, there are generally two realtors involved in the sale. The listing agent represents the home seller, and the buyer's agent represents the home buyer.

As the seller, you're responsible for paying the full commission fee. But your listing agent will split the 5.59% commission with the buyer's agent at closing.

Most of the time, commissions are split fairly equally between both agents. In Texas, the average commission split has 2.71% going to the listing agent and 2.88% going to the buyer's agent, according to our research.

Commission does not include closing costs, which average an additional 1.2% of the home sale price in Texas and covers costs like title service and transfer taxes. However, you likely won’t have to pay any of these fees out of pocket. Realtor commission and closing costs are usually deducted directly from your sale proceeds at closing.

💡 How much do Texas realtors earn? Texas listing agents earn an average of $8,532 per home sale (based on a 2.71% listing commission rate and a $314,837 sales price).

What factors affect realtor commission rates in Texas?

As a Texas seller, here are the factors that you should be aware of when it comes to realtor commission rates.

The Texas housing market favors sellers

Texas sellers may be able to negotiate lower rates with their agents because the housing market currently favors sellers. This is because there are more buyers looking for homes than there are available homes for sale.

The seller's market in Texas will persist as long as population growth trends continue and housing inventory remains scarce. Texas has added 4 million people to its population since 2010, according to the U.S. Census — more than any other state in the US. [1]

But home buyers have few listings to choose from. Active Texas home listings are down 53.0% over the past year, falling the most in Dumas (94.6% drop), College Station (49.5%), and Uvalde (89.2%).[2]

Texas homes are selling quickly in major cities

Commission rates may trend lower in Texas because the homes that are on the market are more likely to sell quickly — especially in major cities. When homes fly off the market, that creates less work for agents, and realtors may be willing to charge you a lower rate than they would in a buyer's market.

Across the Lone Star state, homes sell in an average of 48 days, but they sell much faster in Austin (51 days), Dallas (43 days), and Wichita Falls (38 days).[3]

Home values in Texas are rising

As a Texas home seller, the value of your home may be rising, which increases the cost of realtor commission when you sell your home. In Texas, median home prices are up 24.1% 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
6.4%
Killeen
4.9%
Dallas
2.4%

If you're selling a more expensive home (above $500,000 in most markets), you may have more leverage to negotiate a lower rate with your realtor. Realtors earn a larger dollar amount on pricier homes, although it doesn't necessarily require more work.

However, if your home is less expensive or not in market-ready condition, an agent likely won't want to lower their overall rate — because they'll receive a smaller dollar amount for their work.

How to save on Texas realtor fees

Here are strategies that can help you get a lower commission rate than the average 5.59% realtor fee in Texas.

Shop around for the best value

One of the best ways to find a good deal on realtor fees in Texas is to compare several different agents to find the right match for your situation.

When you're interviewing realtors, take stock of each agent's experience, service, and personality, along with the rates they charge. Some agents may not have any room to negotiate their rates, while others may be more open to finding a pricing structure that works for your budget.

We recommend interviewing at least 2–3 local agents — preferably from different Texas brokerages — before making your final decision.

👋 Get the same agents for less

Clever matches you with top local realtors from trusted brands — like Keller Williams and RE/MAX — for a discounted listing fee of just 1%. That’s a fraction of the 2.5-3% that realtors traditionally charge!

Sellers who use Clever save on average $9,000 on commission and they get offers 2.8x faster than the national average. Ready to find a top agent? Enter your zip code below to get started.

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 2.71% listing fee in Texas – and the top brands provide the exact same level of service as conventional realtors.

Top Texas discount real estate brokerages in 2022

Clever Real Estate

Clever Real Estate

Learn More

💲 Listing Fee

$3,000 or 1%

💰 Avg. Savings

$7,375

⭐ Avg. Customer Rating

4.9/5 (1,810 reviews)

✍️ Editor's Take
Pros
Cons
Reviews
Locations

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.


Try Clever for free — save thousands on commission

  • 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 44,835, Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,710 reviews.


Read reviews from real Clever customers here.

Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.

SHOW MORE

💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

$5,550

⭐ Avg. Customer Rating

3.8/5 (425 reviews)

✍️ Editor's Take
Pros
Cons
Reviews
Locations

Redfin offers real savings and a proven brand. But sellers could compromise on service — especially agent experience and availability.


Read the full Redfin review.

  • 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 3.8 out of 5 rating (425 reviews) across popular review sites like Google and Yelp.


Read reviews from real Redfin customers here.

Redfin is available in 80+ U.S. markets (see all locations).

SHOW MORE

💲 Listing Fee

$3,500 (1% above $1M)

💰 Avg. Savings

$8,500

⭐ Avg. Customer Rating

4.7/5 (318 reviews)

✍️ Editor's Take
Pros
Cons
Reviews
Locations

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.


Read the full Redefy review.

  • 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 4.7 out of 5 rating (318 reviews) across popular review sites like Google and Zillow.


Read reviews from real Redefy customers here.

Redefy is available in the following areas: CO, FL, GA, IL, NC, SC, TN, TX, VA.

SHOW MORE
SimpleShowing

SimpleShowing

Full Review

💲 Listing Fee

1% (min. $3,500)

💰 Avg. Savings

$7,125

⭐ Avg. Customer Rating

4.9/5 (245 reviews)

✍️ Editor's Take
Pros
Cons
Reviews
Locations

SimpleShowing’s commission savings are solid — but you may compromise on agent selection and hands-on service.


Read the full SimpleShowing review.

  • 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 (245 reviews) across popular review sites like Google, Trustpilot, and Zillow.


Read reviews from real SimpleShowing customers here.

SimpleShowing is available in the following areas: FL, GA, TX.

SHOW MORE

» 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.

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.

Next steps

Thinking of selling your home but don't know where to start? Here are some next steps.

Start interviewing local Texas real estate 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 a real estate agent — 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).

👋 Find top agents, sell for a 1% listing fee

Clever has saved thousands of happy customers over $50 million — we can help you keep more money in your pocket too!

With Clever:  

 ✅ Sellers pay only 1% in listing fees

 ✅ Buyers get up to 0.5% cash back on eligible purchases

 ✅ You'll work with a local realtor from top brokers, like RE/MAX and Keller Williams

Clever's service is 100% free, with zero obligation. You can interview as many agents as you like, or walk away at any time. Enter your zip code to find a top local agent today!

Explore real estate agent alternatives

There are other ways to sell your house besides listing with an agent. Learn more below:

Methodology

We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents.

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 2022
  • Sale prices and sale-to-list ratios: Based on Redfin data as of May 2022 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of August 2022

FAQs about average real estate commission in Texas

In Texas, realtor commission rates are completely negotiable — but not all agents will be willing to negotiate their fees. You’ll typically agree on a rate with your agent before you sign a listing contract. Learn more about how to negotiate realtor commissions.

Yes. In Texas, the listing agent usually splits the commission with the buyer’s agent – but not always down the middle. On average, listing agents earn slightly less per transaction than buyer's agents, with 2.71% going to the listing agent and 2.88% to the buyer's agent. Learn more about how realtor fees work.

The average Texas realtor commission rate in 2022 is 5.59%, with listing agents earning an average split of 2.71% and buyer's agents earning an average split of 2.88%. Listing agents earn around $8,532 per home sale in Texas, using the state's average selling price of $314,800 and the typical commission rate of 2.71%.

Realtors in Texas will make a commission around $2,800 on the sale of a $100,000 home, using the state's typical commission rate of 2.71%. Buyer's agents in Texas will make around $2,900, using the state's typical buyer's commission rate of 2.88%.

Sellers are responsible for paying realtor fees to both the listing agent and the buyer's agent in Texas. Generally, the commission fee will come out of the seller's proceeds at closing — so you don't have to pay anything out of pocket. Learn more about how realtor fees work in Texas.

Related links

ARTICLE SOURCES
[1]

2020 U.S. Census. "2020 U.S. Census." Accessed December 27, 2021. Updated August 25, 2021.

[2]

Realtor.com. "Real Estate Data." Accessed 03/01/2022. Updated 03/01/2022.

[3]

Realtor.com. "Real Estate Data." Accessed 03/01/2022. Updated 03/01/2022.

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