real-estate

Real Estate Agent Commission in Texas: What Sellers Pay Now

Texas sellers now pay 4.75 to 5.5 percent total commission. Listing rates in DFW, Houston, Austin, and San Antonio, how the buyer side works, and negotiation tips.

Real Estate Agent Commission in Texas: What Sellers Pay Now

Texas has more licensed real estate agents than any state except California, and that crowd is the main reason commission has come down faster here than in much of the country. Total commission on a Texas home sale now averages 4.75 to 5.5 percent, and in Austin, Dallas, and the Houston suburbs it is common to see 4.5 percent on homes over $450,000. Five years ago the state average was closer to 5.8 percent, and 6 percent was the default answer from most listing agents.

The other reason is paperwork. Texas rewrote its standard forms after the 2024 settlement so that buyer agent pay is a specific paragraph in the purchase contract that the seller can accept, counter, or strike, and sellers who understand that paragraph save money. This guide covers what listing agents charge in each metro, how the buyer side works under the current Texas forms, and where sellers have room to push.

Listing Rates in the Four Big Metros

Dallas-Fort Worth listing agents charge 2.5 to 3 percent, and sellers in Plano, Frisco, Southlake, and the Park Cities regularly negotiate 2 to 2.5 percent on homes over $500,000. The metro has a large number of discount and flat-fee brokerages, and full-service agents compete against them on price more than they used to.

Houston runs 2.5 to 3 percent as well, with The Woodlands, Katy, Sugar Land, and the Memorial area seeing the most negotiation. Inside the Loop, high-priced homes in River Oaks and West University close at 2 to 2.25 percent on the listing side.

Austin is the most price-competitive market in the state. Listing sides of 2 to 2.5 percent are normal in Travis and Williamson counties, and 1.5 percent shows up on well-priced homes in Circle C, Steiner Ranch, and Cedar Park. Austin's price run-up and subsequent cooling left a lot of agents competing for fewer listings.

San Antonio is closer to the old norm at 2.75 to 3 percent. Median prices around $300,000 give agents less room to discount, and the market has fewer flat-fee operators than Austin or Dallas. Stone Oak and Alamo Heights sellers see some negotiation, but 3 percent is still common.

El Paso, Lubbock, Corpus Christi, the Rio Grande Valley, and East Texas are 3 percent listing markets. Total commission in those areas still lands at 5.5 to 6 percent.

How the Buyer Side Works Under the Texas Forms

Texas MLSs no longer display buyer agent compensation, and buyers sign a written representation agreement before touring. The Texas Real Estate Commission and the Texas Realtors association updated the standard contract so that any seller contribution to the buyer's agent is written into the offer as a specific dollar amount or percentage.

That paragraph is negotiable like any other. Sellers can accept the request, counter with a lower number, or strike it and let the buyer pay their own agent. In practice, most Texas sellers still contribute because buyers at the $250,000 to $450,000 price point cannot easily add $8,000 to $13,000 in cash at closing.

The amount has shifted. Buyer agents in DFW, Houston, and Austin now commonly request 2 to 2.5 percent instead of 3, and flat requests of $7,500 to $12,000 are showing up on homes above $500,000. Sellers in multiple-offer situations, which still happen in Frisco, Katy, and Round Rock, can pick the offer with the smallest concession.

FHA and VA buyers are worth a note. FHA caps seller concessions at 6 percent of the price, and buyer agent compensation counts toward that cap. VA buyers can now pay their own agent, but most still ask the seller to cover it, and VA-heavy markets around Fort Hood, Fort Sam Houston, and Fort Bliss see a lot of those requests.

What Sellers Pay at Different Prices

On a $325,000 house in Mansfield, south of Fort Worth, a typical deal right now is 2.75 percent listing plus 2.5 percent buyer side, or 5.25 percent total. That is $17,063.

On a $485,000 house in Katy, sellers commonly negotiate 2.5 percent listing and 2 percent buyer side, or 4.5 percent total, which is $21,825. Compared with 6 percent, that is $7,275 back to the seller.

On a $675,000 house in Cedar Park, 2 percent listing and 2 percent buyer side is a realistic outcome. Total commission is $27,000, or 4 percent.

On a $1.4 million home in Highland Park or West Lake Hills, 3.5 to 4 percent total is normal, and some sellers negotiate the listing side to a flat $20,000 to $25,000.

Sellers in smaller markets should expect the higher end. A $240,000 house in Lubbock will likely pay 5.5 to 6 percent, or $13,200 to $14,400.

Flat-Fee and Discount Options in Texas

Texas has a large flat-fee MLS industry. Listing on the MLS through a flat-fee broker runs $200 to $1,000, and the seller handles showings, negotiation, and paperwork. It works in busy suburbs where a well-priced house draws offers on its own and poorly for anything unusual.

Discount full-service brokerages charge 1 to 1.5 percent for the listing side and provide photography, MLS entry, and negotiation support with fewer in-person services. They are concentrated in DFW, Houston, and Austin.

Some traditional agents now offer tiered pricing: 1.5 percent if the seller finds the buyer, 2 percent if the house sells in 30 days, and 2.5 percent if it takes longer. Ask about it. Agents in competitive metros are more flexible than their websites suggest.

Whatever the listing arrangement, the buyer side is a separate decision. A flat-fee seller who offers 2 percent to buyer agents ends up at roughly 2.2 percent total, which is the main way sellers in Texas get their total commission under 3 percent.

Negotiating With a Texas Listing Agent

Interview three agents and ask each for their commission, their recommended buyer-side contribution, and a marketing plan in writing. Texas listing agreements are binding, and there is no renegotiating after signing unless the agent agrees.

Ask what happens if the agent's own buyer purchases the home. Texas allows intermediary status with written consent, and many agents will reduce total commission to 4 percent when they handle both sides. Others refuse, which is fine, but the answer matters.

Ask for a cancellation clause. A listing agreement that lets the seller walk after 30 days without penalty if the service is poor is common in DFW and Austin, and agents who compete for listings agree to it. Six-month listing terms with no exit are a red flag.

Ask about marketing spend. Professional photography, a floor plan, and paid social advertising are standard from good Texas agents at 2.5 percent, and an agent who quotes 3 percent and plans to shoot the listing on a phone has a bigger problem than the rate. Comparing the real estate agents in your Texas market on what they include is the fastest way to see who is earning the rate.

Other Selling Costs in Texas

Texas has no transfer tax at the state, county, or city level, which saves sellers $1,000 to $5,000 compared with most states. The only recording cost is the county clerk's fee of $30 to $100.

Owner's title insurance is customarily paid by the seller in Texas, and the rates are set by the Texas Department of Insurance, so they are the same at every title company. On a $400,000 home the owner's policy runs about $2,400. That is one of the larger non-commission lines in a Texas sale.

Escrow fees run $400 to $900 for the seller's side, plus $100 to $250 for deed preparation and small courier and recording fees. HOA resale certificates run $150 to $400 in the planned communities that cover much of suburban Texas, and some associations add a transfer fee.

Property taxes are prorated, and because Texas rates are high, that line matters. A seller closing in September on a home with a $9,000 annual bill credits the buyer roughly $6,700, and adding typical inspection credits of $2,000 to $5,000 brings the all-in cost of selling in Texas to 7 to 9 percent of the price. For more on each of those lines and on preparing a Texas home for sale, our other real estate articles cover them in detail.

Frequently Asked Questions

What is the average real estate commission in Texas right now?

Total commission averages 4.75 to 5.5 percent statewide. Austin, DFW, and Houston suburbs often close at 4.5 percent on homes over $450,000, while San Antonio and smaller markets sit closer to 5.5 to 6 percent.

Do Texas sellers have to pay the buyer's agent?

No. Under the current Texas contract forms, any seller contribution to the buyer's agent is a negotiable paragraph in the offer. Most sellers still contribute 2 to 2.5 percent because buyers request it and refusing narrows the buyer pool.

Is there a transfer tax when selling a house in Texas?

No. Texas has no state or local real estate transfer tax. The seller's main non-commission cost is the owner's title policy, which runs about $2,400 on a $400,000 home at state-regulated rates.

Can I use a flat-fee MLS listing in Texas?

Yes, and Texas has one of the largest flat-fee markets in the country at $200 to $1,000 per listing. It works best for well-priced homes in active suburbs and poorly for unique or high-end properties.

What is intermediary status in Texas?

It is the Texas version of dual agency, where one brokerage represents both buyer and seller with written consent. Many agents reduce total commission to around 4 percent when acting as intermediary, so it is worth asking about before signing.