Who Pays Realtor Fees in Texas, and How Much?

Does the agent keep all the Realtor fees?

Although the seller typically pays the 6% Realtor fees in Texas, the listing agent doesn’t keep it all. Besides the typical 50/50 split with the buyer’s agent Larsen noted above, there are additional expenses and splits that are shaved off the agent commissions.

“If I got to keep the full 3% on every transaction I ever did, I would be driving a Bentley,” Larsen says with a chuckle. “But the reality is, most agents are only getting a fraction of that 3%.

Larsen, who has worked in the industry for more than 27 years, explains that part of their commission will go toward marketing your property with professional photography, open houses, offline marketing, and more.

Both the listing agent and the buyer’s agent will then share a percentage of their commission with their sponsoring broker.

Are Texas Realtor fees negotiable?

Larsen says you can negotiate Realtor fees in Texas. “We do see some transactions that are negotiated to a lower rate, like 2.5%, or where the seller only pays 2% to the buyer’s agent, and I’m careful to discuss this with both buyers and sellers.”

However, he explains that experienced agents may stand firm on how much they charge. A Consumer Federation of America report found that only 27% of agents are willing to negotiate Realtor fees. But this percentage is likely to change soon. (More on this in the box below.)

One reason agents are reluctant to lower their fees is that it may reduce their ability to negotiate a higher sale price for the seller. An agent’s services usually include professional photography and vital pricing analysis, so a lower fee could also translate into a smaller marketing budget for your home, an inaccurate selling price, less property marketing, and a lower likelihood of selling.

Exceptions can occur if you’ve already found a buyer. Let’s say you’re selling your Texas bungalow to a friend, or have decided to sell it to a family member; in that case, the agent would likely be willing to play the role of transaction coordinator and independent go-between for a reduced Realtor fee.

When asked how negotiating a reduced buyer-side Realtor fee might impact the transaction, Larsen says sellers should think of it as simple economics. “We’re talking about high school level economics. If you are not paying a reasonable buyer’s agent fee, your traffic and your showings are going to be lower.” He adds that “just from an economic standpoint,” this can translate to a loss for the seller on several levels.

Overall, Realtor fees in Texas are negotiable but do your research first. When asking an agent to lower their pay, you may be limiting the pool of agents willing to work with you. And the downsides to working with a low-commission agent can be steep. Without a top Texas Realtor in your corner, you could undersell your home, have a bad selling experience, or fail to sell the property at all.

What do you get in return for Realtor fees?

Larsen says many of his clients are initially unaware of how much time and money top agents invest to get results for their clients. “A lot of what I spend my time on does not always get appreciated by the average consumer — even the amount of desk time that’s required to do these tasks.”

Larsen explains that a full-service real estate agent in Texas will provide a high level of service.

“In return for the fees on the listing side, the Realtor is providing marketing expertise and much more. Most Realtors absorb the cost of taking photographs, creating flyers, creating websites for the individual properties, making sure they have open houses if appropriate, getting the home prepared for showings, coaching the sellers through that process, and there is a tremendous amount of paperwork that goes on in the background.”

Here is a look at some of the services you can expect when you hire a Texas Realtor:

• Guidance on pre-sale improvements: Seasoned Realtors see a lot of homes in their Texas markets. They will have an eye for the small but impactful improvements you could make to help it sell for more. The best agents will go above and beyond to help their clients get the job done.
• Pricing strategy: An agent worth their salt will provide a thorough comparative market analysis (CMA) — a packet featuring charts, facts, figures, and photographs of nearby similar homes. The analysis will show you what your home is worth based on comparable sales in the neighborhood, market trends, and local price per square foot.
• Marketing services: As part of their listing fee, a good Texas Realtor will offer expert home prep and staging, professional photography, marketing flyers and pamphlets, direct mail, automatic postings of your listing on major home search sites, local advertisements, exclusive previews for other brokers, and open house coordination. Advanced agents may also offer drone footage and virtual tour features.
• Offer management and negotiations: When you receive one or multiple offers, a knowledgeable Realtor will help you determine the strength of the offer and work with you to proceed with responding to buyers. They’ll advise on whether to accept, reject, or make a counteroffer and help you identify the best offer in a bidding war scenario.
• Choosing what to fix: If a buyer requests repairs after the inspection, a Realtor will advise on when to concede, or help you push back where appropriate. Should the appraised value be lower than the contract price, an agent can help you determine whether to ask the buyer to make up the difference or if you should lower your asking price.
• Market knowledge and neighborhood expertise: Great Texas Realtors know what local buyers are looking for in a house and which of your home’s attributes to highlight. They will know how best to promote key features in your home’s listing description.

What is a fair Realtor fee in Texas?

To hire an experienced full-service agent in most Texas markets, you should plan to pay a combined Realtor fee of 5.8% to 6%. For this rate, you can expect an agent who is dedicated to selling your home for the best possible price. A full-commission agent can guide you through the entire transaction from listing to closing.

How do you find a top-rated Texas Realtor?

Finding the right real estate agent for your situation is one of the best first steps you can take when selling a house. This is where HomeLight’s free Agent Match platform can be a game-changer. We analyze over 27 million transactions and thousands of reviews to determine which agent in your Texas market is best for you based on your needs. Whether you’re planning to sell or buy a property — or both at the same time — trust HomeLight to connect you with the most experienced agents.

Yes, You Can Buy Before You Sell. Why Move Twice?

Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.

Learn More

How can you avoid paying Realtor fees?

There are two main ways to avoid paying Realtor fees. You can either sell your Texas home without an agent’s help or sell it directly to a cash buyer without ever listing it on the market.

• For Sale By Owner (FSBO): Without an agent, you’re responsible for preparing your home for sale, marketing, negotiating, and navigating all the legal and financial documents. Typically, FSBO makes the most sense if you already have a buyer. Last year, 57% of FSBO sellers already knew their buyer. Taking the FSBO route is also rare, making up just 7% of sellers in 2023. But the biggest consideration might be the price you get for your home. The median FSBO house sold for $310,000, compared to a median of $405,000 for agent-assisted sales. That’s a significant loss of proceeds in an effort to possibly save 6% on commissions.
• Sell to a cash buyer: Cash buyers — including iBuyers, investors, and house-buying companies — are individuals or groups that purchase your home outright without the need for lender financing. These buyers typically make off-market purchases and can provide speed and convenience to sellers. It’s important to note that the price offered by most cash buyers will be less than what you could receive on the open market with the help of a Realtor. If you’re interested in a cash sale, you can receive a no-obligation offer in 24 hours through HomeLight’s Simple Sale platform. There are no hidden fees or agent commissions, and you can close in as few as 10 days.

Get started today with a top Texas Realtor

Sellers pay Realtor fees in exchange for an agent’s expertise and services throughout the sale process. An experienced agent’s refined marketing strategies and savvy negotiation skills can help you maximize your sale price far beyond the 6% you might pay in agent commissions. In fact, Our transaction data shows that top agents in Texas sell homes for as much as 10% more than average agents.

The key is finding a top agent who provides the highest amount of value for their Realtor fee. Whenever you’re ready to get started, HomeLight can connect you with the highest-rated Texas agents in your city.

Writer McCoy Worthington contributed to this story.

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