How much realtors make in Texas | Who pays realtor fees | How realtors set commission rates | How to save
The average real estate commission in Texas is 5.59%, which includes the seller's agent fee and the buyer's agent fee. The seller typically covers both realtor fees from the sale proceeds at closing.
On a home worth $294,336 (the typical home value in Texas), a seller can expect to pay about $16,453 in realtor commission.
What you actually pay in Texas real estate commission will depend on several factors — including how you find an agent.
How much are realtor fees in Texas?
Average listing agent commission | 2.71% |
Average buyer's agent commission | 2.88% |
Total average realtor fees | 5.59% |
When you sell a home in Texas, two realtors are generally involved in the sale: the listing agent, who represents the seller, and the buyer's agent.
Texas listing agents earn an average of $7,977 per home sale, based on a 2.71% commission rate and a $294,336 sales price. Buyer's agents in Texas earn an average of $8,477 per home sale.
That makes a home seller's total average commission cost $16,453.
However, some Texas agents charge as much as 3.19% to sell a house, while others charge as little as 2.23%. On the buying side, real estate commissions in Texas range from 2.40% to 3.35%.
Realtor commissions are typically the most expensive fees Texas home sellers pay during the closing process. But there are ways that you can reduce the amount you spend on realtor fees.
For most sellers, the best way to save on realtor commissions is with a 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 1.5% 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!
Texas realtor commission calculator
You can use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Texas. Enter your home's estimated sale price, and see how much you'll pay at different commission rates.
Who pays realtor fees in Texas?
In Texas, home sellers typically pay the realtor fees for both the listing agent and the buyer’s agent.
As the seller, you pay your listing agent to:
- Educate you on the local market and home selling process
- Run a comparative market analysis to determine a listing price
- Recommend professionals to help you prep your home
- List and market your home
- Coordinate showings and open houses
- Screen offers
- Negotiate with the buyer and their agent
- Stay on top of paperwork and the closing timeline
You pay the buyer’s agent for bringing a qualified buyer to the sale who meets the contract requirements and closes on time.
You don’t have to cover these fees out of pocket. Like closing costs, realtor commissions are deducted from the sale proceeds at closing.
» MORE: How do real estate commissions work?
Why do sellers pay the buyer's agent commission?
When you offer to pay the buyer's agent commission, you'll likely have a larger pool of prospective buyers.
Covering this fee makes your home more attractive to buyers, who would otherwise have to pay for their agent up front. Many buyers can't afford to do this on top of a down payment and closing costs.
When you make a competitive offer, buyer's agents are more incentivized to show your home, increasing your odds of getting several offers. Realtors recommend advertising a buyer's agent fee within 0.5% of the local norm.
You can account for the cost of realtor commissions when determining an asking price for your home — essentially passing the expense onto the buyer in the form of a slightly higher list price.
How do realtors set their commission rates in Texas?
Realtors have flexibility when setting their commission rates. They typically consider these factors:
- The local market
- The average commission rate in their area
- Their overhead costs, like license fees, taxes, and marketing
- How much time and effort it may take to sell the home
- The value of the home
- Their level of experience
- The time of year
Agents are more likely to lower their rate if you're selling during a seller's market or the off-season, your home is high value, or there's limited inventory.
If you're in a mixed market or a buyer’s market, realtors may hesitate to negotiate fees because your home might be harder to sell.
» MORE: How to negotiate realtor commission
How to save on realtor fees in Texas
To pay less than the average realtor fee in Texas, you can:
Shop around for the best value
To find a good deal on realtor fees in Texas, we recommend interviewing at least two to three local agents — preferably from different Texas brokerages.
Instead of just looking for the lowest rates, make sure you find the right realtor for your situation. Compare each agent's rates AND their experience, services, and personality.
» LEARN: Questions you should ask a listing agent
Some agents may not have room to negotiate their rates, while others may be open to finding a price that works for your budget.
Sell with a discount real estate broker
For guaranteed lower rates, work with a discount real estate brokerage.
Discount brokerages offer built-in savings, so you don't have to do the negotiating. Rates can be as low as 1.5% — significantly lower than the average 2.71% listing fee in Texas. The top brands provide the same level of service as conventional realtors.
Top Texas discount real estate brokerages in 2023
Clever Real Estate
Get Started💲 Listing Fee
1.5% (min. $3,000)
💰 Avg. Savings
$5,625
⭐ Avg. Customer Rating
4.9/5 (1,995 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.
- Clever offers a free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
- You get multiple agent matches so you can interview, compare marketing plans, and choose the best fit.
- Clever pre-negotiates low rates on your behalf — you get full service for a low 1.5% listing fee.
- If you buy with Clever, you could get cash back after closing.
- 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.
Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,844 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.
Redfin
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$5,550
⭐ Avg. Customer Rating
3.7/5 (301 reviews)
Redfin offers real savings and is 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 3.7 out of 5 rating (301 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
Ideal Agent
Full Review💲 Listing Fee
2% (min. $3,000)
💰 Avg. Savings
$3,750
⭐ Avg. Customer Rating
4.9/5 (5,842 reviews)
Ideal Agent can match with a great agent from a traditional brokerage. But its 2% listing fee makes Ideal Agent a lot more expensive than other full-service discount brands.
- You'll get a full-service agent from a traditional brokerage.
- It's free to request an agent match, and you can walk away at any time.
- Ideal Agent costs more than most other full-service, low commission companies.
- You'll get matched with only one realtor — most similar services recommend multiple agents so you can compare your options and pick the one you like best.
Ideal Agent has a 4.9 out of 5 rating (5,842 reviews) across popular review sites like Google and Trustpilot.
Ideal Agent is available to home sellers nationwide.
SimpleShowing
Full Review💲 Listing Fee
1% (min. $3,500)
💰 Avg. Savings
$6,375
⭐ Avg. Customer Rating
4.9/5 (335 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.
- You have 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 (335 reviews) across popular review sites like Google, Trustpilot, and Zillow.
SimpleShowing is available in the following areas: FL, GA, TX.
» COMPARE: See our full breakdown and top picks for discount brokerages
Negotiate with an agent
Right now, Texas market conditions are favorable for negotiating commission rates. You have a better chance of securing a lower rate if you meet one or more of these criteria:
Your home is in good condition
Well-maintained homes make great first impressions on buyers and tend to sell quickly. Your agent may lower their rate since your home may be easier to sell.
Signs of a well-kept home include:
- Updated fixtures
- Healthy landscaping
- A roof with no leaks or damaged shingles
- Clean or recently upgraded flooring
- No unpleasant odors or signs of mold
You have a high-value home
For roughly the same amount of work, your agent earns much more on a $500,000 listing at a 2% commission rate than on a $100,000 listing at a 3% rate. They may lower their rate on a high-value home since they'll get more money overall.
You agree to buy with the agent as well
If you also use your agent to purchase a new home, that means double the commission for your agent. They may lower their rates to secure both deals.
You can send more business their way
When you refer people to your realtor, it saves your agent money on finding new clients and helps them grow their business. This gives you leverage during negotiations.
⚡Quick tip: Let agents know you’re interviewing multiple candidates. They might offer a lower rate up front to be more competitive. |
Next step: Interview local Texas real estate agents
Set up listing appointments with several agents. During these appointments, an agent will visit your home to discuss its estimated value, lay out their marketing strategy, and talk about their process and fees.
Here's why it's smart to sit down with a few agents before signing with one:
- It's free to meet with agents.
- You can compare pricing, experience, and personality.
- You can learn more about your local market and the selling process from experts.
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.
List with a top local agent for 1.5% — no negotiations required.
FAQ about average real estate commission in Texas
In Texas, realtor commission rates are negotiable, but not all agents will be willing to lower their fees. You 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 typically splits the commission with the buyer’s agent – but not always down the middle. On average, listing agents earn 2.71% and buyer's agents earn 2.88%. Learn more about how realtor fees work.
The average Texas realtor commission rate in 2023 is 5.59%, with 2.71% going to the listing agent and 2.88% to the buyer's agent.
On a $500,000 home sale in Texas, listing agents make around $13,550 and buyer's agents around $14,400, based on the state's average commission rates.
On a $100,000 home sale in Texas, listing agents make around $2,800 and buyer's agents around $2,900, based on the state's average commission rates.
In Texas, sellers usually pay the realtor fees for both the listing agent and the buyer's agent. These commission fees typically come out of the seller's proceeds at closing instead of out of pocket. Learn more about how realtor fees work in Texas.
Methodology
We gathered 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.
Related links
Real estate agent alternatives
There are other ways to sell your house besides listing with an agent. Learn more: