How commission works | Getting low rates | Low commission companies | Methodology
📊 The data: We polled local agents and found that the average real estate commission in Texas is 5.65%, which is higher than the national average of 5.45%. |
For a house sold for $223,107, this rate translates to $12,606 in real estate agent commission costs.
Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.
» MORE: Learn how Clever can help you save on commission.
Below, we cover everything you need to know commission costs in Texas and also give you tips for getting low rates.
How real estate agent commission works in Texas
There are two real estate agents involved in a typical home sale:
- The seller's agent (also called the listing agent), representing the home seller
- The buyer's agent, who represents the person buying the home
The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission, and is baked into the sale price of a home and split between the two agents.
» LEARN: More about how real estate commissions work.
Based on our research, the average commission split in Texas has 49.65% of the commission going to the listing agent and 50.35% going to the buyer's agent.
Who pays for real estate commissions?
Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.
However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in-part — through a higher sales price.
» MORE: Who pays realtor commission.
How to save on real estate commission in Texas
💰Best ways to save While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
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» MORE: Options for saving on realtor commission
If you’re thinking about negotiating with a realtor to get a better-than-average commission, current real estate trends might be in your favor.
The average house in Texas is listed for just 36.5 days before selling. And sellers aren’t seeing a huge difference between what they’re asking for their houses and what they’re actually getting when they sell.
Because of this, agents might be more confident of an easy sale when they list your house, which could make them more willing to offer a discounted rate.
Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.
Tips for negotiating realtor commission in Texas
Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.
Factor | You may have an easier time negotiating low rates if... |
|---|---|
Your situation |
|
The Texas housing market |
|
» LEARN: How you can negotiate lower commission rates.
While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in Texas.
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 inclined to offer lower commission rates. The opposite is true in a buyer's market.
📖Definitions Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market. Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market. Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable. |
To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in Texas.
Stats and facts: The current state of the Texas real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 1.2 months of housing inventory on the market | Seller's market |
Sale-to-list price | Homes are selling for 98.60% of their listing price | Seller's market |
Home value | Home values have risen/fallen 4.14% year over year | Seller's market |
Low commission real estate companies in Texas
Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:
Discount real estate brokers in Texas
Discount real estate brokers are companies that will list your home for a reduced commission percentage or flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.
Clever
Clever Real EstateListing Fee
1% (minimum $3,000)
Clever Cash Back
0.5% on homes over $150,000
Avg. Customer Rating
4.8/5 (386 reviews)
- Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
- Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
- Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
- Buyers may be eligible for 0.5% back after closing (in qualifying locations)
Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico
Pros
| Cons
|
As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
- Trustpilot: 4.8/5 (379 reviews)
- BBB: An A rating
Door Real Estate
Door Real EstateListing Fee
$5,000
Buyer Rebate
Up to $1,500
Avg. Customer Rating
4.8/5 stars (420 reviews)
- Door.com is a discount real estate service and licensed brokerage in 10 U.S. states
- Sellers pay a flat $5,000 listing fee at closing for full-service listing assistance from a team of agents and specialists
- Door's online portal allows sellers to manage their listing and get virtual support from Door's in-house team
- Eligible buyers get up to $1,500 back at closing
| California | Oklahoma |
| Colorado | Oregon |
| Florida | Pennsylvania |
| Georgia | Tennessee |
| Massachusetts | Texas |
Pros
| Cons
|
As of May 20, 2020, Door's average customer rating is 4.8/5 based on 420 reviews across Zillow, Google, Facebook, and Yelp.
- Zillow: 4.9/5 (338 reviews)
- Google: 4.2/5 (40 reviews*)
- Facebook: 4.4/5 (38 reviews)
- Yelp: 4/5 (4 reviews*)
- BBB: An A rating, not BBB accredited*
*Reviews are for Door’s Dallas, TX office. Reviews may vary by location. We recommend conducting your own research for customer reviews specific to your area.
Redefy
Redefy Real EstateListing Fee
$3,500
Buyer Rebate
N/A
Avg. Customer Rating
4.3/5 (115 reviews)
- Redefy is a multi-state real estate franchise that offers flat-fee listing services for home sellers and standard services for home buyers
- Redefy is currently available in select cities in Colorado, Florida, Georgia, Illinois, North Carolina, South Carolina, Tennessee, Texas, and Virginia
- When you sell with Redefy, you'll pay a nonrefundable $500 fee up front, then $3,000 at closing, for a total fee of $3,500.
- You should also expect to pay a buyer's agent commission. Rates vary, but 2.5-3% is typical nationwide
- When you buy with Redefy, you'll get full service and support, but unlike some other discount services, Redefy doesn't offer built-in savings or rebates
- Note: Each Redefy office is an individual franchisee, so experiences may vary considerably by location. Look up reviews specific to your local office for an accurate gauge of customers' experiences
| Atlanta, GA | Jacksonville, FL |
| Augusta, GA | Knoxville, TN |
| Austin, TX | Memphis, TN |
| Charleston, SC | Miami, FL |
| Charlotte, NC | Nashville, TN |
| Chattanooga, TN | Norfolk, VA |
| Chesapeake, VA | Northern Colorado |
| Chicago, IL | Orlando, FL |
| Colorado Springs, CO | Raleigh, NC |
| Columbia, SC | Richmond, VA |
| Dallas, TX | Rock Hill, SC |
| Denver, CO | San Antonio, TX |
| Fort Mill, SC | Tampa, FL |
| Greenville, NC | Virginia Beach, VA |
| Houston, TX |
Pros
| Cons
|
*Homes valued over $1 million may pay a 1% listing fee — check with your local Redefy office.
As of May 20, 2020, Redefy's third-party reviews for its main Denver office average a 4.3/5 rating across Yelp, Google, and Facebook. See the breakdown below.
- Yelp*: 4.5/5 (30 reviews)
- Google*: 4.5/5 (59 reviews)
- Facebook: 3.8/5 (26 reviews)
- Better Business Bureau*: A+
*These reviews are for Redefy's main Aurora, CO office. Reviews vary considerably by location. We recommend conducting your own research for customer reviews specific to your area.
» MORE: About discount real estate brokers.
Flat-fee MLS listing services Texas
Flat-fee MLS listing services offer to post your home on your local MLS for a low rate 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, this might not be a good option for you.
Creekview Realty
Creekview RealtyPrice Range
$495-1,195
Number of Photos
Max allowed on MLS
Listing Term
6 months
- Creekview realty is a licensed real estate brokerage that specializes in MLS listings and other for sale by owner (FSBO) services across Texas
- Also offers full-service, flat-fee representation
- Listings can be posted on the same day if they are properly submitted before 11am (weekdays only)
- Cancel any time without penalty (no refunds)
$495 - Plan A
| $1,195 - Plan B
|
A-la-carte services:
- Comparative Market Analysis (CMA) - $100
- Electronic Lockbox - $100 deposit
- Professional Photographer - $175
- Flyer Box - $25
Pros
- Legal forms included with package
- No fee to change listing description or pictures
- Free yard sign with basic package
Cons
- Entry-level package pricier than similar flat-fee MLS listing services
- No built-in home valuation
- The only option for listing term is 6 months
As of August 4, 2020, Creekview Realty has an average rating of 4.7/5 based on 129 reviews across Google, Yelp, and Facebook.
DFW City Homes
DFWCityhomesPrice Range
$595-995+
Number of Photos
36
Listing Term
6-12 months
- DFWCityhomesis a licensed, Texas real estate brokerage that specializes in flat-fee MLS listing services for the Dallas/Fort Worth metro area
- Comparative market analysis (CMA) included
- Set your own buyer’s agent commission (DFWCityhomes recommends 3%)
- Pay no commission if you find an unrepresented buyer
- Free cancelation any time
- Buyer’s leads vetted before being forwarded to you
$595 + $595 at closing - Flat Fee MLS Listing Service
| $595 + 1% at closing - MLS Full Service Listing
|
DFWCityhomes also offers a flat-fee MLS listing package for rental properties. Check website for details.
Pros
- Work directly with the broker, not a referral service
- CMA included with all packages
- Built-in help with contracts, disclosures, and other paperwork
- Buyer’s rebate if you also buy a house with DFWCityhomes
Cons
- No budget listing package or a-la-carte services
As of August 4, 2020, DFWCityhomes has an average rating of 5/5 based on 106 reviews across Google, Yelp, and Facebook.
» MORE: About flat-fee MLS services.
Methodology
Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the 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 September, 2020
- Sale prices and sale-to-list ratios: Based on Redfin data as of September, 2020 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September, 2020