Average Real Estate Commission in Texas

By 

Bailey Peterson

Updated 

February 11th, 2021

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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:
  • Negotiating rates with a traditional realtor
  • Working with a low commission real estate company

» 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.

With Clever you can save on commission without negotiating… AND work with top agents!

Clever has pre-negotiated low commission rates, with top local agents across the country.

The result is that you can save thousands of dollars when you sell your home, without having to haggle over commission rates!

With a Clever agent, you get full service and only pay a listing commission of $3,000 or 1%.

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
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The Texas housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising

» 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.

Listing Fee

1% (minimum $3,000)

Clever Cash Back

0.5% on homes over $150,000

Avg. Customer Rating

4.8/5 (386 reviews)

Description
Locations
Pros & Cons
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
  • Listing fee of $3,000 (or 1% on homes >$350K) for a full-service agent
  • Sellers only pay once their home is sold
  • Partner Agents are top, local realtors with at least 5 years experience
  • Agent matches are customized and based on your specific situation
  • Eligible buyers receive 0.5% in Clever Cash Back
Cons
  • Sellers may not be matched with an agent from their preferred brokerage
  • While homes are listed on the MLS, there's no independent Clever listing site.







As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.

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Door Real Estate

Door Real Estate

Listing Fee

$5,000

Buyer Rebate

Up to $1,500

Avg. Customer Rating

4.8/5 stars (420 reviews)

Description
Locations
Pros & Cons
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
CaliforniaOklahoma
ColoradoOregon
FloridaPennsylvania
GeorgiaTennessee
MassachusettsTexas
Pros
  • Sellers get full service for a flat $5,000 listing fee
  • Eligible buyers can get up to $1,500 back at closing
  • Online seller dashboard for managing your listing and centralized communication
  • Buyers get daily MLS email alerts




Cons
  • Other companies offer the same services at lower prices
  • Other companies may offer better value for buyers
  • Team-based approach vs dedicated agent may not be for everyone — learn more
  • Door agent will not attend showings on seller's behalf
  • Salaried agents could be less motivated to sell your home for top dollar

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.

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Listing Fee

$3,500

Buyer Rebate

N/A

Avg. Customer Rating

4.3/5 (115 reviews)

Description
Locations
Pros & Cons
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

ProsCons
  • Charges $500 non-refundable fee up front
  • Franchise model means service quality and/or experience may vary considerably by location
  • Redefy doesn't do open houses for its sellers
  • Limited availability — locations in only 29 U.S. cities (as of 4/10/2020)
  • No built-in commission rebates for buyers


*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.


*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.

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» 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 Realty

Price Range

$495-1,195

Number of Photos

Max allowed on MLS

Listing Term

6 months

Description
Pricing
Pros & Cons
Reviews
  • 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
  • 6-month listing on MLS
  • Syndicated to Realtor.com, Zillow, Trulia, and more
  • Maximum number of photos allowed by MLS
  • Creekview Realty yard sign and lockbox
  • CSS scheduling service
  • Legal forms (downloads)
$1,195 - Plan B
  • Same as Plan A, plus:
  • Full representation (dedicated agent to advise and represent you in negotiations and necessary paperwork)

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.

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DFW City Homes

DFWCityhomes

Price Range

$595-995+

Number of Photos

36

Listing Term

6-12 months

Description
Pricing
Pros & Cons
Reviews
  • 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
  • 6-month listing on MLS
  • Syndicated to Realtor.com, Zillow, and more
  • Up to 36 professional photos
  • Yard sign
  • Supra lockbox
  • ShowingTime scheduling and feedback system
  • Audio and virtual video tours
  • Social media marketing
  • In-home consultation to go over market analysis, marketing plan, and other ways to help your house sell
  • Contract, form, and closing document preparation and review
$595 + 1% at closing - MLS Full Service Listing
  • Same as Flat Fee MLS Listing Service package, plus:
  • DFWCityhomes will host your open house
  • DFWCityhomes attends your closing
$995 + $3,000 at closing - Luxury Home Flat Fee MLS Listing Service
  • Same as MLS Full Service Listing package, plus:
  • 12-month listing on MLS
  • Staging advice
  • Color brochure
  • Information book including disclosures, survey results, and other information

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.

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» 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

Additional resources for Texas home sellers

Average Real Estate Commission Rates in Texas Cities

Dallas

Houston