5 min read Aug 12, 2024

Real Estate Commissions in Texas: Here’s How Much You Have to Pay in 2024

Editor
Edited By

Carol Coutinho

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Editor
Edited By

Carol Coutinho

Editor, Houzeo
About

Carol C. is a versatile editor, expertly refining real estate content with precision and creativity. When not exploring market trends, she is immersed in the enthralling world of the theatre.

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✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.

A steep 5% to 6% of your home sale price. That’s how much Realtor commissions are in the Lone Star State. On a median-priced Texas home of $352,500, this translates to $21,150!

The recent NAR settlement has cast doubt on the future of the 3% buyer agent commission structure. But the 3% listing agent fee is still up for grabs. With a Flat Fee MLS company like Houzeo, you can skip the listing agent and save almost $10,575!

With Houzeo, your home can be on the MLS within 24 hours. Moreover, you get access to tools available only to real estate agents. So, what are you waiting for?

How Much Are Realtor Commission Rates in Texas?

The average Texas real estate commission is 5.53%. However, this rate may vary based on the agreement, property type, and market conditions.

Here’s how much you would get for your home in Texas with and without a listing agent:

Price ComparisonWith Listing AgentWithout Listing Agent
Actual Selling Price$352,500$352,500
Listing Agent Commission2.5% to 3% (~$10,575)0
Recommended Buyer Agent Commission2.5% to 3% (~$10,575)2.5% to 3% (~$10,575)
Total Real Estate Agent’s Commission$21,150$10,575
Final Home Sale Price$331,350$341,925

Real estate agent commission rates also vary depending on your location. In major cities like Miami and Jacksonville, agents may charge up to 6% of the home’s value. For suburban or smaller areas, commission rates typically fall around 5%.

» What is My Home’s Worth: Find your home’s value briefly. This will help you calculate the agent fees.

How Is the Commission Split Between Real Estate Agents and Brokers in Texas?

Real estate commissions in Texas typically follow the structure given below:

The 6% Realtor commission in Texas is equally divided between the listing agent’s brokerage and the buyer agent’s brokerage. Once operational expenses are accounted for, this 3% commission is further split between the agent and the broker.

Who Pays the Real Estate Agent in Texas?

In Texas, home sellers typically pay real estate commissions, which are usually included in the seller closing costs. A buyer pays only for the home and their own closing expenses.

    ✍️ Important Note: A recent lawsuit challenging the National Association of Realtors (NAR) on commission practices has been settled. As a result, sellers won’t take the whole brunt of paying the real estate agent fees.

Will the NAR Lawsuit Benefit the Home Sellers?

The recent tsunami of antitrust class action lawsuits against NAR has forced it to settle for $418 million. It has also led to a series of changes that could potentially reduce the burden of agent commissions on the seller.

Here are the settlement terms:

  1. NAR will not create rules that mandate listing agents to set compensation for buyer brokers. There will now be room for independent negotiation between buyers and their agents, potentially reducing the seller’s overall commission burden.
  2. NAR will create a rule to ensure compensation offers aren’t displayed on the MLS listings. This could encourage transparent and competitive commission discussions.

Are you curious about NAR’s recent year of trouble? Watch our detailed analysis.

Alternatives to Paying Real Estate Commission in Texas

If you’re looking for an affordable alternative to an agent-assisted sale, here are a few options you can opt for:

  • List With a Discount Real Estate Broker: The best discount real estate brokers in Texas offer all the services that traditional Realtors do but at discounted rates. They usually charge 1.5% to 3% commissions to list your home.
  • Sell “For Sale By Owner”: Selling your home via Texas For Sale By Owner websites implies no access to the MLS. You market your property, conduct market research, manage offers and showings, etc., all by yourself.
  • Sell to an iBuyer or Cash Buyer: A cash buyer can make a cash offer instantly and help you sell your house fast in Texas. iBuyers have strict purchase criteria but can make cash offers as high as 80% of the Fair Market Value.
  • List Your Home on the MLS for a Flat Fee: Texas Flat Fee MLS companies get you listed fast, typically within 24 to 48 hours on your local MLS. This is your best chance to get top dollar for your house.
flat fee mls texas

How Can You Save on Real Estate Commissions in Texas?

Real estate agent commissions in Texas are a steep 5% to 6% of the home sale price. To maximize savings, consider negotiating with your agent.

You can also opt for Flat Fee MLS Listing services like Houzeo. Your home can be on the MLS within 24 to 48 hours. Additionally, your listing will receive maximum exposure via top real estate websites like Trulia, Redfin, and more.

5 Easy Steps to List on MLS

Check out the following video to understand how to list your house on Houzeo and save on commissions.

How to List on MLS With Houzeo?

5 Easy Steps to List on MLS with Houzeo as FSBO

Start Your MLS Listing NOW!

» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.

Frequently Asked Questions

How much commission does a realtor make in Texas?

Realtor percentage in Texas is about 5% to 6% . The agents receive this amount on each house they successfully sell.

Who pays Realtor commission in Texas?

Usually, sellers pay the Realtor commission in Texas. However, from July, NAR's new rules could mean sellers no longer have to pay the buyer's agent commission on their own.

Can I negotiate Realtor commission?

Yes! You can always negotiate on real estate commissions. Before negotiating, you should consider market conditions, agent experience, and services offered. Do your research and interview agents as well.

Are there alternatives to using a realtor?

Yes! Flat Fee MLS services like Houzeo allow you to get your home listed on the MLS without the 3% listing agent fee. You can also consider other alternatives like discount brokers or cash buyers.

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