Realtor Commission in Texas | Updated for 2022

Steve Nicastro

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Steve Nicastro

June 22nd, 2022
Updated June 22nd, 2022

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📊 The data: We surveyed 915 local real estate agents and found the average real estate commission in Texas is higher than the national average of 5.37%. Our methodology explains how we crunched the numbers.

The average realtor commission rate in Texas is 5.59% - higher than the national average of 5.37%. The seller typically covers this fee, which gets deducted from their sale proceeds at closing.

This 5.59% commission rate includes both the seller's agent and buyer's agent fees. In Texas, seller's agents charge around 2.71% on average, and buyer's agents charge an average of 2.88%.

5.59% is a pretty hefty chunk of change: You'd pay roughly $17,516 in realtor fees for a home worth $313,300 (the typical Texas home value as of June 2022).

The good news is most Texas home sellers don't need to pay the 5.59% rate: A population boom and few homes for sale put you in a stronger position to negotiate realtor fees in Texas.

It's also worth considering Texas discount real estate brokerages, which can provide the same general services of a conventional realtor at a fraction of the cost.

Here's everything you need to know about realtor commission in Texas, including tips for negotiating rates and next steps if you’re getting ready to sell your home.

How much are realtor fees in Texas?

Home sale price
$313,300
Commission (5.59%)
$17,516
Closing costs (1.2%)
$3,760
Net to seller
$292,025

The average cost to sell a home in Texas is close to 7% of the sales price - 5.59% for realtor commission and 1.2% for closing costs, which include transaction-related expenses like title services and transfer taxes.

Here's what you could pay in realtor commission at three different price points, based on the average commission rate in Texas:

Home sale price
Commission (5.59% rate)
$200,000
$11,180
$250,000
$13,975
$300,000
$16,770

Realtor commissions are typically the most expensive fees Texas home sellers pay during the closing process. But there are a few ways that you can reduce the amount you spend on realtor fees.

One option is to try to negotiate a lower commission rate with your realtor. You can also avoid realtor fees altogether by selling your house without a realtor— but this can be a time-consuming and risky process.

For most sellers, the best way to save on realtor commissions is with a real estate 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% 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!

💰 Get a lower rate with a top Texas agent!

Want to find a top local agent in Texas without overpaying on realtor fees? Clever negotiates 1% listing fees with top-rated Texas real estate agents from trusted brokerages like Keller Williams, RE/MAX, and Berkshire Hathaway.

Get guaranteed full service for a fraction of the 2.71% rate Texas agents typically charge. Schedule a free, no obligation consultation with a top local agent today!

Texas realtor commission calculator

Use this Texas realtor commission calculator to estimate how much you'll pay in real estate commission fees when you sell your home in Texas. You can use the following average commission rates, or insert different rates if you already know how much your agent will charge.

  • Average Texas listing agent commission rate: 2.71%
  • Average Texas buyer's agent commission rate: 2.88%

How realtor fees in Texas work

When you sell a home in Texas, there are generally two realtors involved in the sale. The listing agent represents the home seller, and the buyer's agent represents the home buyer.

As the seller, you're responsible for paying the full commission fee. But your listing agent will split the 5.59% commission with the buyer's agent at closing.

Most of the time, commissions are split fairly equally between both agents. In Texas, the average commission split has 2.71% going to the listing agent and 2.88% going to the buyer's agent, according to our research.

Commission does not include closing costs, which average an additional 1.2% of the home sale price in Texas and covers costs like title service and transfer taxes. However, you likely won’t have to pay any of these fees out of pocket. Realtor commission and closing costs are usually deducted directly from your sale proceeds at closing.

💡 How much do Texas realtors earn? Texas listing agents earn an average of $8,491 per home sale (based on a 2.71% listing commission rate and a $313,339 sales price).

What factors affect realtor commission rates in Texas?

As a Texas seller, here are the factors that you should be aware of when it comes to realtor commission rates.

The Texas housing market favors sellers

Texas sellers may be able to negotiate lower rates with their agents because the housing market currently favors sellers. This is because there are more buyers looking for homes than there are available homes for sale.

The seller's market in Texas will persist as long as population growth trends continue and housing inventory remains scarce. Texas has added 4 million people to its population since 2010, according to the U.S. Census — more than any other state in the US. [1]

But home buyers have few listings to choose from. Active Texas home listings are down 39.0% over the past year, falling the most in Dumas (17.9% drop), College Station (42.2%), and Uvalde (29.6%).[2]

Texas homes are selling quickly in major cities

Commission rates may trend lower in Texas because the homes that are on the market are more likely to sell quickly — especially in major cities. When homes fly off the market, that creates less work for agents, and realtors may be willing to charge you a lower rate than they would in a buyer's market.

Across the Lone Star state, homes sell in an average of 30 days, but they sell much faster in Austin (22 days), Dallas (24 days), and Wichita Falls (25 days).[3]

Home values in Texas are rising

As a Texas home seller, the value of your home may be rising, which increases the cost of realtor commission when you sell your home. In Texas, median home prices are up 24.1% statewide and are expected to rise further in the coming year.

Here's where Texas home values are forecasted to rise the most in 2022:

Area
Projected increase
Athens
10.8%
Killeen
11.9%
Dallas
10.8%

If you're selling a more expensive home (above $500,000 in most markets), you may have more leverage to negotiate a lower rate with your realtor. Realtors earn a larger dollar amount on pricier homes, although it doesn't necessarily require more work.

However, if your home is less expensive or not in market-ready condition, an agent likely won't want to lower their overall rate — because they'll receive a smaller dollar amount for their work.

How to save on Texas realtor fees

Here are strategies that can help you get a lower commission rate than the average 5.59% realtor fee in Texas.

Shop around for the best value

One of the best ways to find a good deal on realtor fees in Texas is to compare several different agents to find the right match for your situation.

When you're interviewing realtors, take stock of each agent's experience, service, and personality, along with the rates they charge. Some agents may not have any room to negotiate their rates, while others may be more open to finding a pricing structure that works for your budget.

We recommend interviewing at least 2–3 local agents — preferably from different Texas brokerages — before making your final decision.

👋 Get the same agents for less

Clever matches you with top local realtors from trusted brands — like Keller Williams and RE/MAX — for a discounted listing fee of just 1%. That’s a fraction of the 2.5-3% that realtors traditionally charge!

Sellers who use Clever save on average $9,000 on commission and they get offers 2.8x faster than the national average. Ready to find a top agent? Enter your zip code below to get started.

Sell your house with a discount real estate broker

If savings are a top priority, you should consider working with a discount real estate brokerage.

Discount brokerages offer built-in savings, with no negotiating required. Rates are as low as 1% – significantly lower than the typical 2.71% listing fee in Texas – and the top brands provide the exact same level of service as conventional realtors.

Top Texas discount real estate brokerages in 2022

Brand
Listing fees
Avg. savings*
1%
$7,375
1%
$7,125
1.5%
$5,550
2%
$3,750
*Compared to a typical 3% listing fee at four price points: $100k, $250k, $500k, $750k

» COMPARE: See our full breakdown and top picks for discount brokerages in 2022

Negotiate with an agent

Realtors are more likely to reduce their commission rate if they're confident they can sell your home quickly and for a high price.

Right now, Texas market conditions are favorable for negotiating commission rates, but no two houses or neighborhoods are the same. You have a better chance of securing a lower rate if you meet one or more of the following criteria.

Your home is in good condition

Well-maintained homes make for desirable listings that make great first impressions on buyers and sell quickly.

Signs of a well-kept home include:

  • Healthy landscaping, which adds to your home's curb appeal.

  • A roof with no leaks or damaged shingles.

  • Clean flooring and carpeting.

  • No funny odors, signs of mold, or high moisture levels in bathrooms or the crawl space.

You have a high-value home

A $300,000 listing at a 2% commission rate earns your agent much more than a $100,000 listing at a 3% rate – for roughly the same amount of work.

These Texas markets currently have the highest median list prices:

Market
Median list price
Fredericksburg
$855,000
Austin
$620,000
Dallas
$486,000
Source: Realtor.com data

You agree to buy with the agent as well

Agents are more likely to offer you a discount if you also use them to purchase a new home – a "list-buy" deal means double the commission for your agent.

You can send more business their way

Real estate agents love referrals because they get new prospective clients without any additional effort.

Agents invest a huge amount of time and energy into marketing themselves to drum up new business. Referring friends, family, or acquaintances saves your realtor money and helps them grow their business, which gives you leverage in negotiations.

Quick tip: Listing agents may be more willing to offer a lower rate if they know you’re shopping around. Let the agents you talk to know you’re interviewing multiple candidates – they might just offer a lower rate up front to be more competitive.

Next steps

Thinking of selling your home but don't know where to start? Here are some next steps.

Start interviewing local Texas real estate 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, so they will try to sell you on their service.

  • You can compare pricing and features: Shopping around helps you find the best combination of experience, personality, and price for your specific needs.

  • Learn more about your market from an expert: Realtors can provide local data like what similar homes in your area are selling for, how quickly they’re going under contract, 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 homebuyers.

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).

👋 Find top agents, sell for a 1% listing fee

Clever has saved thousands of happy customers over $50 million — we can help you keep more money in your pocket too!

With Clever:  

 ✅ Sellers pay only 1% in listing fees

 ✅ Buyers get up to 0.5% cash back on eligible purchases

 ✅ You'll work with a local realtor from top brokers, like RE/MAX and Keller Williams

Clever's service is 100% free, with zero obligation. You can interview as many agents as you like, or walk away at any time. Enter your zip code to find a top local agent today!

Explore real estate agent alternatives

There are other ways to sell your house besides listing with an agent. Learn more below:

Methodology

Our data on Texas commission rates is based on a survey of 915 of our partner agents from across the country, in which we asked for 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: Based on Zillow data as of June 2022
  • Months of inventory, list prices, and time on market: Based on Realtor.com data as of June 2022

We last surveyed Texas real estate agents in May 2021, and we're in the process of updating our data.

FAQs about average real estate commission in Texas

In Texas, realtor commission rates are completely negotiable — but not all agents will be willing to negotiate their fees. You’ll 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 usually splits the commission with the buyer’s agent – but not always down the middle. On average, listing agents earn slightly less per transaction than buyer's agents, with 2.71% going to the listing agent and 2.88% to the buyer's agent. Learn more about how realtor fees work.

The average Texas realtor commission rate in 2022 is 5.59%, with listing agents earning an average split of 2.71% and buyer's agents earning an average split of 2.88%. Listing agents earn around $8,491 per home sale in Texas, using the state's average selling price of $313,300 and the typical commission rate of 2.71%.

Realtors in Texas will make a commission around $2,800 on the sale of a $100,000 home, using the state's typical commission rate of 2.71%. Buyer's agents in Texas will make around $2,900, using the state's typical buyer's commission rate of 2.88%.

Sellers are responsible for paying realtor fees to both the listing agent and the buyer's agent in Texas. Generally, the commission fee will come out of the seller's proceeds at closing — so you don't have to pay anything out of pocket. Learn more about how realtor fees work in Texas.

Related links

ARTICLE SOURCES
[1]

2020 U.S. Census. "2020 U.S. Census." Accessed December 27, 2021. Updated August 25, 2021.

[2]

Realtor.com. "Real Estate Data." Accessed 03/01/2022. Updated 03/01/2022.

[3]

Realtor.com. "Real Estate Data." Accessed 03/01/2022. Updated 03/01/2022.

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