Realtor Commission in Texas: What to Expect in 2025

If you’re buying or selling a home in Texas, understanding how realtor commissions work can help you make more confident decisions—and potentially save thousands of dollars. In 2025, commission structures have shifted in important ways. Buyers and sellers now navigate new rules around who pays what, and there are more opportunities than ever to negotiate a rate that works for everyone. In this guide, we’ll break down typical commission ranges, explain the payment process, and share practical strategies for keeping costs down without sacrificing quality representation.

At SOLD.com, we specialize in connecting Texas buyers and sellers with top-performing real estate agents who know the local markets inside and out. Whether you’re selling a property in Dallas, buying a first home in Austin, or exploring investment opportunities in Houston, our free matching service pairs you with professionals who align with your goals and budget. This allows you to compare options, evaluate service levels, and sometimes secure a listing commission well below the typical rate—all without compromising expertise or results.

How Much Are Real Estate Commissions in Texas?

In 2025, the average total realtor commission in Texas is about 5.64% of a home’s final sale price, though most deals still fall within a 5% to 6% range. This amount is typically split evenly between the listing agent and the buyer’s agent, with each side earning roughly 2.82%. For example, if you sell a home for $300,000, the total commission at the average rate would be about $16,920. On a $500,000 home, that figure jumps to around $28,200.

These numbers are useful benchmarks, but they’re not set in stone. Texas law doesn’t establish a fixed commission rate, and every fee is negotiable. The exact percentage you agree to will depend on factors like your home’s price point, the level of competition in your area, and the services your agent provides. In high-demand neighborhoods, agents may be more flexible on fees to win your business, while in slower markets they may emphasize the value of their marketing strategy and negotiation skills to justify their rate. Understanding where your property sits in this spectrum can help you negotiate confidently and get the best balance of cost and service.

Who Pays Realtor Fees in Texas?

For many years, the standard in Texas real estate has been for the seller to cover both their own agent’s commission and the buyer’s agent’s commission, with the total deducted from the seller’s proceeds at closing. This approach has traditionally made a home more attractive to buyers, since they don’t need to factor in their agent’s fee on top of their down payment and closing costs.

Recent industry changes, however, are starting to reshape that arrangement. As of 2024, buyers in Texas must sign a written agreement with their agent that outlines exactly what services will be provided and how the agent will be paid. If a seller chooses not to offer a buyer’s agent commission, the buyer may be responsible for paying that amount themselves—typically 2% to 3% of the purchase price. This shift means sellers now have more flexibility in how they structure commissions, but it also means they need to carefully consider whether covering the buyer’s agent fee could give their listing an edge in a competitive market. Likewise, buyers should be prepared to budget for this cost or negotiate a concession from the seller to help cover it.

How Real Estate Commission Works in Texas (From Listing to Closing)

In Texas, real estate commissions follow a clear process that starts long before a home reaches the closing table. For sellers, it begins when you sign a listing agreement with your chosen agent. This agreement outlines the commission rate, the marketing plan, and the responsibilities your agent will take on to sell your property. Once the home is listed, your agent handles everything from professional photos and staging recommendations to coordinating showings and fielding offers from interested buyers.

When a buyer’s offer is accepted, the transaction moves into the escrow phase. During this period, both agents—your listing agent and the buyer’s agent—work to guide their clients through inspections, appraisals, and any negotiations that arise. At closing, the agreed commission is deducted from the seller’s proceeds and distributed between the agents’ brokerages. Because both the listing agent and buyer’s agent typically split their earnings with their respective brokers, that commission is often divided four ways. Understanding this flow not only helps you see where your money is going but also gives you a clearer picture of the work involved in earning that commission.

What’s Included in a Real Estate Agent’s Commission?

A real estate commission in Texas covers far more than just listing a property on the MLS. For sellers, your listing agent’s commission includes setting the right price through detailed market analysis, developing a tailored marketing strategy, arranging professional photography, staging advice, and hosting open houses or private showings. They also handle negotiations, manage inspection and appraisal responses, and coordinate every detail leading up to closing so the process stays on track.

For buyers, an agent’s commission pays for personalized property searches, in-depth market comparisons, expert guidance on crafting offers, skilled negotiation to protect your interests, and step-by-step support during inspections, appraisals, and final walkthroughs. A good buyer’s agent also acts as a liaison with lenders, title companies, and other professionals involved in the transaction.

Whether you’re on the buying or selling side, your agent’s commission reflects not just their time but also their expertise, network, and ability to navigate complex situations. Clear communication is a big part of that value—many agents provide weekly updates or even real-time access to progress reports so you always know where things stand.

How Recent Rule Changes Affect Realtor Commission in Texas

The real estate industry has seen some major shifts in the past year, and Texas is no exception. One of the biggest changes from the 2024 National Association of Realtors settlement is the requirement for buyers to sign a written agreement with their agent before touring homes. This document must clearly spell out the services the agent will provide and the fee that will be charged. It also means that buyers and agents now negotiate fees directly, rather than assuming the seller will automatically cover the cost.

Another important change is that broker compensation can no longer be advertised in MLS listings. This puts the details of commission arrangements firmly in the hands of buyers, sellers, and their agents to work out privately. For sellers, the decision of whether—and how much—to offer toward a buyer’s agent commission is now a strategic one. Offering a concession could help your home stand out in a competitive market, while reducing or removing it may lower your total costs but risk narrowing your buyer pool.

For buyers, these rule changes make it more important than ever to understand what you’re paying for and to budget for that cost from the start. Before signing an agreement, ask your agent exactly what’s included in their services, how the fee will be structured, and whether there’s flexibility in how concessions are handled during negotiations.

Are Texas Real Estate Agents Worth It?

When you’re faced with paying thousands of dollars in commission, it’s natural to wonder if hiring a real estate agent is truly worth it. For many Texans, the answer comes down to the complexity of the transaction, the state of the market, and personal comfort with navigating the process. A full-service agent handles every aspect of the sale or purchase, from pricing strategy and marketing to negotiations and closing coordination. This hands-on support often results in higher sale prices for sellers and better-negotiated deals for buyers, easily offsetting the cost of commission.

Discount or limited-service agents can save you money up front by offering a reduced commission, but you may be expected to handle more of the work yourself—such as scheduling showings, managing paperwork, or negotiating directly. For some, this trade-off is worth it; for others, the extra workload and potential risk of costly mistakes outweigh the savings.

Selling or buying on your own—known as For Sale By Owner (FSBO)—eliminates commission entirely, but it’s also the most challenging route. Without the benefit of professional marketing, market insight, or skilled negotiation, FSBO sellers often net less than they would have with an experienced agent. In the end, the right choice depends on your priorities, skills, and risk tolerance, but for many Texans, the experience and expertise of a professional agent still proves to be a valuable investment.

How to Save on Realtor Fees in Texas (Without Sacrificing Service)

While commission rates in Texas often hover between 5% and 6%, there are effective ways to reduce what you pay without cutting corners on service. The first is to negotiate strategically. Agents may be more willing to adjust their rate if you’re selling a high-value home, have your property in pristine, move-in-ready condition, or can offer a flexible showing schedule that makes their job easier. The strength of your local market also plays a role—sellers in fast-moving areas may have more leverage to request a lower commission.

Another option is to explore low-commission or limited-service brokerages, which often advertise rates as low as 1% to 2% for listing services. However, it’s important to understand exactly what’s included. A reduced fee might mean fewer marketing resources, less personal attention, or more responsibility on your end. The goal is to weigh the savings against the value of the services you’ll receive.

SOLD.com can simplify this process. Our free matching service connects you with top-performing agents across Texas who not only meet your needs but may also offer competitive rates. Because we vet our partners for both skill and service quality, you can compare options confidently, knowing you’re choosing from experienced professionals who are motivated to deliver great results.

Commission Examples in Major Texas Markets

At a typical 6% rate, commissions vary by city: Dallas ($397K median) is about $23,820, Houston ($340K) about $20,400, Austin ($438K) about $26,280, and San Antonio ($311K) about $18,660. Actual costs may be lower if you negotiate. Local market factors like demand, inventory, and days on market also influence how flexible agents may be on rates.

How to Talk About Commission With Your Agent

Discussing commission with your agent doesn’t have to be awkward—it’s simply part of making sure you understand the value you’re receiving. A good starting point is to ask your agent to walk you through a net proceeds sheet that shows how different commission rates would affect your bottom line. This gives you a clear picture of what you’ll take home as a seller or what you’ll need to budget as a buyer.

It’s also helpful to have a written outline of exactly what services your agent will provide. Ask about their marketing strategy, how often they’ll update you, and any performance milestones they aim to meet. If you’re selling, find out how they plan to market your property to stand out from the competition. If you’re buying, ask how they’ll help you identify the right homes and strengthen your offers.

In some cases, you might explore performance-based incentives, such as a tiered commission structure where the agent earns a higher percentage if they secure a sale above a certain price point. Whatever the arrangement, the key is to keep the conversation respectful, data-driven, and focused on finding the best balance between cost and value.

Timing: When Realtor Fees Are Paid, and How They Appear on Closing Documents

Realtor commissions in Texas are almost always paid at closing. For sellers, the agreed-upon commission is deducted directly from the sale proceeds before the final amount is transferred to you. For buyers, if you’re responsible for paying your agent’s fee under your agreement, that amount will typically be due at closing as well, either from your own funds or through an agreed credit from the seller.

These fees are clearly itemized on the closing disclosure, a document you’ll receive before signing final paperwork. The disclosure will show the total commission, how it’s split between the listing and buyer’s agents, and the net amount you’ll receive or owe once all costs are settled.

If a transaction falls through before closing, whether a commission is owed depends on the terms of your agreement. Some contracts include provisions that entitle the agent to payment if they’ve procured a ready, willing, and able buyer, even if the deal doesn’t close. That’s why it’s important to review your agreement carefully with your agent—and, if necessary, with a legal professional—before signing.

Legal and Regulatory Basics Texans Should Know

In Texas, there is no law that sets a standard real estate commission rate. Every fee is negotiable and must be agreed upon in writing between you and your agent. This flexibility allows both parties to tailor commission structures to the specific property, market conditions, and services involved. However, it also means that discussing commission with multiple agents before committing can help you find the best fit.

It’s also important to know that price-fixing—agreeing with other agents or brokerages to charge the same rate—is illegal. Each agent must independently set their own fees. Recent industry changes have also removed the ability to display buyer’s agent compensation in MLS listings, so these terms are now discussed directly between buyers, sellers, and their agents.

Before you hire an agent, verify their license status through the Texas Real Estate Commission (TREC) and review the consumer protection disclosures they provide. These documents explain your rights, outline the agent’s obligations, and make clear how fees will be handled. Taking the time to understand these basics can prevent confusion later in the transaction and help you negotiate with confidence.

Buyer-Specific Guidance: Budgeting for Representation in 2025

With recent rule changes, sellers are no longer required to cover the buyer’s agent commission, meaning you may need to pay 2% to 3% of the purchase price at closing. Plan for this cost early. When interviewing agents, compare fee structures—flat fee or percentage—and the services included. In slower markets, you may be able to offset the fee with seller concessions or credits; in competitive markets, this is less likely. 

Seller-Specific Guidance: Maximizing Net Proceeds

Your goal as a seller is to maximize profit after expenses, including commission. Compare multiple listing proposals, looking at strategy, marketing, and contract terms—not just the rate. Use a net sheet to model outcomes with and without offering a buyer’s agent commission. In strong markets, you may adjust rates more freely; in slower ones, offering a competitive commission can help your home sell faster and for more.

How SOLD.com Helps Texans Find the Right Agent and Fee Structure

Navigating commission rates, service options, and agent experience can feel overwhelming—but SOLD.com makes the process simpler and more transparent. Our free matching service connects you with top-performing agents across Texas who are best suited to your needs, whether you’re selling a condo in Austin, buying your first home in Dallas, or upgrading to a larger property in Houston. We evaluate our partners based on proven track records, client satisfaction, and local market expertise, so you can feel confident you’re choosing from some of the best in the business.

When you use SOLD.com, you receive personalized recommendations tailored to your goals, budget, and preferred service level. This not only saves you time but can also help you secure competitive commission rates—sometimes well below the typical 5%–6%—without sacrificing quality. We give you the tools to compare agents side-by-side, review their proposed strategies, and interview your top picks before making a decision. By starting with the right match, you set yourself up for a smoother, more successful real estate experience from start to finish.

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Frequently Asked Questions About Realtor Commission in Texas

Are commissions tax-deductible for sellers? In most cases, the answer is no—realtor commissions are considered a selling expense rather than a deductible cost. However, they may reduce your taxable gain when calculating capital gains taxes. Because every tax situation is different, it’s best to confirm with a qualified tax professional.

Can buyers roll agent fees into their financing? This is uncommon, but in certain situations, lenders may allow a portion of your agent’s fee to be factored into closing costs if it’s covered through a seller concession. Not all lenders permit this, so it’s important to check before you make an offer.

Will offering a lower buyer’s agent commission reduce showings? It’s possible. While some agents will still show properties with lower commissions, others may prioritize homes that offer their standard rate. Your agent can help you understand local norms and whether reducing the commission could impact interest in your property.

What’s the difference between service-level discounting and rate discounting? Service-level discounting means offering fewer services for a lower price—such as limited marketing or fewer in-person showings—while rate discounting means providing the full scope of services at a reduced fee. Understanding which approach you’re getting ensures you’re making a fair comparison when evaluating agents.