Find An Agent

Realtor Fees in Texas (All Your Questions Answered)

Realtor fees get a bad reputation, because people think of them as cutting into seller profits. However, they reflect the work an agent has put in to sell your home. And commissions don’t have to break the bank. Check out our guide on realtor fees to learn how you can save on them.
Realtor Fees in Texas (All Your Questions Answered)

Working with a realtor to sell your home means paying realtor commission fees at closing. The standard commission rate is 6% of your home's sale price, which can significantly reduce your profit margin at closing.

If that doesn't sound appealing to you as a home seller, affordable alternatives to help you keep more money in your pockets. Whether you choose to list with a discount realtor or use an MLS listing service, you can greatly decrease what you'll spend on realtor fees.

For example, you can work with a top full-service agent in your area and save up to 50% on commissions. Clever partners with high performing agents who can get you a great deal for your home, but will only charge $3,000 )or 1% on homes over $350,000) to list your house.

Start interviewing low commission realtors in your area.

Before you get started on your home sale in Texas, here's everything that you need to know about realtor fees in the state.

What realtor fees are there in Texas?

Realtor fees in Texas follow the standard across the United States, with 6% of a home's sale price going towards realtor commission fees. These fees are typically split between the buyer's agent and the listing agents, with each agent receiving about 3% in commission.

Who pays realtor fees in Texas?

Traditionally, the seller is responsible for paying the commission fees of both the buyer's and the seller's agents. The buyer isn't responsible for paying realtor commission fees directly, however, many home sellers account for realtor commission fees in the price of their home. So buyers may pay commissions indirectly through a higher asking price.

What other fees do sellers pay in Texas?

In general, sellers in Texas will have to pay closing costs, repair costs, and any appraisals or inspections that were done prior to the home sale. Closing costs are split between the buyer and the seller, but the seller typically pays significantly more in closing costs because of agent commissions.

Sellers can expect to pay the following during their home sale:

  • Half of the Escrow Fees
  • Transfer Taxes
  • Any Prorated Utility or Renter's Costs
  • Title Insurance
  • Document Preparation Fees

3 Ways to Save on Realtor Fees in Texas

Saving on realtor commission fees is kind of a big deal. They are one of the biggest expenses for home sellers. Luckily, there are several ways to save money on realtor fees in Texas.

FSBO

Listing your home as “For Sale By Owner” (FSBO) means that you have sell your home without the representation of a realtor. Typically, this means that sellers are off the hook when it comes to listing agent commission, which can save sellers up to 3% of their home's sale price.

Pros

  • No Listing Commission Fees: The best way to save on realtor commission fees is to avoid them altogether. When listing FSBO, you don't need to hire a realtor, so you won't have to pay listing fees. However, you will still be responsible for paying buyer's agent commission fees.
  • Control Over Every Aspect of the Home Sale: When listing FSBO, you can choose exactly how to market your home, when to show, and how much to list for, all without consulting another soul. If you want to sell your home on your own terms, FSBO is the perfect way to go about your home sale your way.
  • Perfect for Selling to Family and Friends: The majority of FSBO home sales involve family or friends of the homeowner. It's ideal because homeowners can be flexible when selling to someone they know. There's less of a formality about the whole process.

Cons

  • FSBO Homes Sell for Less: According to NAR, FSBO homes sell for about 25% less on average. Most likely, this is because most homeowners aren't experienced at pricing homes or negotiating. As a result, they end up leaving cash on the table.
  • Overwhelming to Manage Every Aspect of a Home Sale: Selling a home is a major transaction that takes a ton of time and effort to pull off properly. If you don't have the time to dedicate to selling your home, you'd be better off selling with an agent.
  • No Guidance: Without an agent, you can't call and ask for help when your buyer's financing falls through or when an inspection reveals a major issue. When the going gets hard, you'll have to handle everything by yourself.

Discount Brokerages

A discount brokerage offers home sellers realtor services at a discounted rate or flat-fee. These brokerages may offer a tiered pricing model that allows sellers to choose the services they'll need throughout their home sale.

Pros

  • Save on Realtor Fees: Although you don't escape realtors fees completely, discount brokerages make it possible to save thousands in commission fees. Typically, sellers will pay a flat fee or set rate to agents that is well under the 6% standard.
  • The Ability to Choose the Services You Pay For: Many discount brokerages offer sellers the chance to pick and choose which services they'll need. Brokerages offer packages with certain services such as listing or showing at a set cost, and sellers can choose additional services at a higher price.

Cons

  • Less Support During Home Sales: Most discount brokerages offer limited support during the home sale. Be sure to ask any brokerages that you are considering what exactly you can expect in terms of support when going this route in your home sale.
  • Still Have to Pay the Buyer's Agent Commission: Again, even though the listing services offered by discount brokerages are lower than the industry standard, sellers will still need to cover the commission for the buyer's agent.

Low-Commission, Full-Service Agents

Low-commission full-service real estate agents offer sellers the best of both worlds. Sellers get a deep discount and the aid of an experienced real estate agent every step of the way. These agents offer a full array of services at a low cost, meaning that home sellers get the service of a traditional agent without paying the industry average 3% listing commission rate.

Pros

  • Professional Help With Every Aspect of a Home Sale: Selling a home is tough work. Working with an experienced real estate agent from listing to closing means you benefit from their expertise and avoid headaches in the selling process.
  • Significantly Lower Commission Rates: Some listing agents work for commission rates of just 1% of your home's sale price or work for a flat fee. This can save you up to 50% on the amount of commission you pay.

Cons

  • Buyer's Agent Commissions: No matter what route you choose to sell your home, as long as the buyer has an agent, you will have to pay their commission.

Clever Real Estate offers sellers one way to work with a low-commission, full-service agent. Clever partners with top agents across the nation who will cover all aspects of the home sale for a lower commission.

For a flat fee of $3,000 or 1% of your home's sale price, if it sells for $350,000 or more, a Partner Agent will get your home sold quickly and for a competitive price. You will never have to sacrifice the quality of service or profit because you'll be working with a top agent in your area.

FAQs About Realtor Fees in Texas

Are realtor fees negotiable in Texas?

Realtor fees are negotiable in Texas. However, negotiating commission fees down isn't easy. Real estate agents are professional negotiators who work out deals every day. Convincing them to take a lower commission requires skill and leverage most homeowners don't have.

For example, if you are a seller whose home isn't in the best condition and the market is cold in your area, you may not have much success negotiating realtor fees.

Who pays closing costs in Texas?

Both buyers and sellers are responsible for paying closing costs in Texas. However, buyers and sellers are free to negotiate who pays closing costs. Closing costs is an umbrella term that describes the expenses that go towards finalizing the home sale, they can include realtor commission fees, title transfer fees, property taxes, HOA fees, escrow fees, and more.

How can I avoid paying realtor fees?

It is impossible to avoid paying realtor fees unless both the home buyer and the home seller are unrepresented by an agent during their real estate transaction — which almost never happens.

If you are working with an agent you must pay them for their work at the set rate that you both agreed upon. While you can't avoid paying realtor fees, you can save big on them.

There are many options for home sellers who want to save money on their real estate transactions. Sellers are free to work with a discount brokerage, a flat-fee real estate agent, use an iBuyer, list FSBO, or use an MLS listing service to save money.

How much are closing costs in Texas?

Closing costs in Texas can be difficult to estimate because there is a range of fees and expenses that are covered under the phrase “closing costs.” Although both the buyer and the seller split closing costs the seller is typically responsible for paying more in closing costs.

Realtor commission fees are one of the biggest expenses of a home sale, on average they are 6% of a home's final sale price. In addition to realtor fees, another 2%- 5% go to closing costs such as title transfer fees, escrow fees, insurance fees, document preparation fees, lender fees, and more.

SHARE

Jamie Ayers
Jamie Ayers

Jamie is the Director of Content at Clever Real Estate, the free online service that connects you with top real estate agents and helps you save thousands on commission. In the past, Jamie has managed columns for clients in a variety of leading business publications, including Forbes, Inc., CEO World, Entrepreneur, and more. At Clever, Jamie's primary goal is to provide home sellers, buyers, and investors with the information they need to successfully navigate the ins and outs of the real estate industry.

See all Jamie's Posts
WHAT'S NEXT

Sell Your Home with a Top Agent and Save Thousands

Learn how you could save thousands when you sell with Clever!

whats next house

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area.

If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.