Most real estate agents in Texas get paid through commissions. Commissions are typically calculated as a percentage of a property’s sale price, though some brokerages will charge a flat fee. The average agent commission rate nationwide is 5.8% of the home sale price, according to HomeLight’s real estate transaction data of thousands of home sales each year. But how does that compare to the average real estate commission rate in Texas?
In this post, we’ll help you determine how much commission you might pay on your Texas home sale, and what options are available to earn the highest proceeds possible.
What’s the average real estate commission in Texas?
According to Ryan Adams, a Houston real estate expert and HomeLight Elite Agent, you can expect to pay a standard of 6% in agent commissions when selling a home in Texas, with some variation based on location within the state. On a property worth the current statewide median home sale price of $326,800, that amounts to $19,608 in commission costs.
However, he explains that the vast majority of single-family residential sales will fall around the 6% mark, with a 3% buyer’s commission and a 3% seller’s commission. We’ll explain the details of this commission split later in our post.
Using an overall statewide average of 6%, here’s a breakdown of how much you might pay in real estate commissions based on what a home sells for in six of the largest cities in Texas:
|Texas city||Median home price||Typical commission at 6%|
Median home price source: Texas Realtors®, TexasRealEstate.com
HomeLight gathers agent commission data from cities throughout the U.S. To see if we have commission rates for your city, try our Agent Commissions Calculator. You might also be interested in our Home Value Estimator.
Still curious about commission rates in Texas? Here are the answers to common questions about real estate agent commissions:
Who pays real estate commission fees?
The commission is typically paid by the home seller, and the seller’s agent will then split the commission with the buyer’s agent.
As top real estate agent Ryan Adams of Houston’s Adams Group explains, a 50/50 split of the 6% commission on a home is most common in Texas.