How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
Our December 2023 survey of local agents found that the average real estate commission in Houston is 6.00%, which is higher than the national average of 5.49%. Calculate your estimated commission in Texas.
The average total real estate agent commission rate in Houston is 6.00% of the final sale price. Based on the latest median home sale price in Houston ($303,002), that translates to a total cost of roughly $18,180.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Houston, the average listing agent fee is 3.10%, while the average buyer’s agent fee is 2.90%.
Real estate agent commissions make up a significant portion of the closing costs for Houston home sellers. But you don't have to pay the full 6.00% to a traditional agent. If you're selling a home in Houston, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 35% on realtor fees, or about $6,393 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in Houston
| Average listing commission | 3.10% |
| Average buyer's agent commission | 2.90% |
| Total average commission | 6.00% |
There are usually two real estate agents involved in the real estate transactions of 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 real estate commission paid in Houston for listing agents is 3.10% of the final home price and 2.90% for buyer's agents, for a total of 6.00%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Houston
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Houston. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Want to keep more cash after selling your home? Clever steps in to connect you with a top local listing agent who charges a competitive 1.5% commission. Opting for Clever could mean significant savings for you when your property sells.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in Houston?
In Texas, when your house hits the market, the commission for both the buyer's and seller's agents is deducted from the sale price once the deal closes. You don't have to stress about footing these fees in advance.
Your agent earns their commission by performing a thorough market analysis and steering the closing process to completion. Meanwhile, the buyer's agent secures their fee by bringing a qualified buyer to the table, one who agrees to the terms and finalizes the purchase on time.
You can breathe easy knowing these commissions aren't an immediate expense. Much like closing costs, agent commissions come out of the sale's proceeds when you close the deal.
Why do sellers pay the buyer's real estate agent commission?
Covering the buyer's agent commission can greatly increase your property's appeal. When you take on this cost, you present your home as a more enticing choice for buyers, who may find it challenging to pay their agent's commission in addition to the down payment and closing costs. For a significant number of buyers, these extra expenses are just too much to manage.
Set a competitive buyer's agent commission, and watch as real estate agents become more enthusiastic about showcasing your home to potential buyers. This approach can trigger a wave of offers for your property. Experts in the field recommend offering the buyer's agent commission at about 0.5% less than the local norm, which currently sits at 2.90% in Texas.
Will the NAR lawsuit change how real estate commission works?
On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023.
While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need.
The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.
» READ MORE:
How to save on realtor fees in Houston
Commission rates are not set in stone. In fact, we found that while 3.10% is the average listing commission in Houston, rates typically fall between 2.50% and 4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.50%– 4.00% |
| Buyer's agent commission | 2.50%– 3.00% |
| Total commission range | 5.00%– 7.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in Houston?
Real estate commission is always negotiable. In Texas, the 55 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who also plan to buy with you | 75% |
| Homeowners who are repeat clients | 69% |
| Homeowners with more than one property to sell | 69% |
| Seller’s situation (e.g. divorce or death in the family) | 47% |
| Higher property values | 44% |
| High competition for clients | 40% |
| Homes expected to sell quickly | 27% |
| High buyer demand in the area | 20% |
| Highly experienced home sellers | 15% |
| Houses in excellent condition | 15% |
| Periods of low housing inventory | 15% |
Negotiating realtor fees in Houston depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The Houston housing market |
|
While your personal situation will vary, real estate market conditions in Texas will impact all home sellers in your area.
In general, in a seller's market where home sellers have more leverage than buyers, listing agents' jobs are easier so they may be more open to lowering their commission rates. The opposite is usually true in a buyer's market.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To understand the current dynamics of your local real estate market, examine these key indicators:
- Months of inventory
- Sale to list price ratio
- Home value trends
Should these factors point to Texas being a seller's market, you're likely in a strong position to discuss a lower commission rate with your agent. However, if the market presents a mixed bag or leans in favor of buyers, convincing your realtor to go down on their fee might be more challenging.
The current state of the Houston real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 2.07 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 88.81% of their listing price | Buyer's market |
| Home values | Home values have risen 12.92% year over year | Buyer's market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in Houston
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Clever is our top pick in Houston for home sellers looking to save on realtor commission without sacrificing service.
✅ Benefits and features: Clever gets you discounted rates (up to 50%) from non-discount realtors. Plus Clever’s matching service is highly rated and free to use with no obligation.
🏠 How it works: Clever matches you with top local realtors from major brokerages like RE/MAX and Compass. You compare options to find the best fit and get the special 1.5% listing fee (same as Redfin) no matter who you choose.
Pros
- Sell with a traditional agent from a name-brand brokerage (not a discount agent)
- Agents work for up to 50% off their typical rate when you go through Clever
- Most agent selection by far — choose from hundreds of top Houston realtors
Cons
- No guarantee you’ll be able to work with a specific agent or brokerage you have in mind
- Add-ons like professional staging, drone photos, and 3D tours may cost extra (agents will break down what’s included during their listing presentation)
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Redfin’s discount real estate service offers a decent value overall for most home sellers.
✅ Benefits and features: Redfin’s 1.5% listing fees can net you solid savings, and you can get an additional 0.5% listing fee savings if you sell and buy with Redfin within 12 months. Redfin is also a large, well-established brand with more discount realtors to choose from than many local discount real estate brokers.
🚩 Potential red flags: Redfin’s tech-centric and team-based approach to selling isn’t for everyone. Redfin conducts most of the process remotely, and you work with a Lead Agent and a back-office team. Redfin also has a minimum $3,500 fee in Houston, meaning if your home's price is below the $235k mark, you’ll pay slightly more than the advertised 1.5% listing rate.
Pros
- Solid listing fee savings
- Established brand and decent agent selection
- Tech-forward approach may appeal to some sellers
Cons
- Slightly higher minimum fee vs. other Houston options
- High-volume, team-centric approach may not be for everyone
- Less agent selection in Houston than Clever
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Creekstone Real Estate offers competitive pricing for a full-service discount real estate broker, but it lacks the proven track record of larger brands.
✅ Benefits and features: Its 1% listing fee can help you save on realtor commissions relative to the average Houston listing rate of 2.56%.
🚩 Potential red flags: Creekstone is a small, local company, which means the choice of agents and access to resources may not be as extensive as other discount realtors.
Pros
- Low 1% listing fee can yield significant savings
- Understanding of the local Houston market
Cons
- Limited pool of real estate agents to choose from compared to bigger brands
- Lack of customer reviews makes it difficult to verify service quality
» LEARN: How do discount real estate brokers offer lower fees?
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, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, 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 home buyers.
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).
Clever has pre-negotiated low commission rates of only 1.5%, with Houston's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
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. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of February 2024
- Sale-to-list ratios: Based on Zillow data as of February 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2024
