{"id":96539,"date":"2024-09-10T13:39:13","date_gmt":"2024-09-10T20:39:13","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96539"},"modified":"2024-09-10T13:39:13","modified_gmt":"2024-09-10T20:39:13","slug":"texas-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/texas-real-estate-commissions\/","title":{"rendered":"Texas Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

When buying or selling a <\/span>home in Texas<\/span><\/a>, it’s important to understand real estate commissions to budget effectively and negotiate confidently. In 2024, <\/span>new regulations<\/span><\/a> reshaped how real estate commissions are disclosed across the U.S., giving buyers and sellers clearer information. These updates aim to improve transparency and enable more informed choices when dealing with real estate fees.<\/span><\/p>\n

Whether you’re entering the market for the <\/span>first time<\/span><\/a> or ready to sell your home, this Redfin guide will walk you through Texas\u2019s real estate commission structure and what to anticipate in the current market.<\/span><\/p>\n

Current state of the Texas housing market<\/span><\/h2>\n

Before diving into real estate commissions in Texas, let\u2019s take a closer look at the state\u2019s <\/span>housing market.<\/span><\/a><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$354,100<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n 159,919 (+23.4% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n13.6% (-6.5 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\"Texas<\/p>\n

Understanding real estate commissions in Texas<\/span><\/h2>\n

What are real estate commissions?<\/span><\/h3>\n

Real estate commissions<\/span><\/a> are fees paid to agents by homebuyers or sellers for helping complete a transaction. These fees are typically paid at closing and calculated as a percentage of the property’s sale price.<\/span><\/p>\n

Who pays the commission?<\/span><\/h3>\n

Traditionally, sellers have covered both their own <\/span>agent\u2019s commission<\/span><\/a> and the buyer\u2019s agent\u2019s fees from the sale proceeds. However, as of August 17, 2024, buyers must now <\/span>agree to their agent\u2019s fee<\/span><\/a> in writing before starting home tours.<\/span><\/p>\n

While buyers can still request that sellers cover their agent\u2019s commission during negotiations, this change means the amount a seller might pay for a buyer\u2019s agent can vary depending on the buyer, and is entirely negotiable.<\/span><\/p>\n

Average real estate commission rates in Texas<\/span><\/h2>\n

In Texas, real estate commission rates can vary significantly depending on the transaction details and the agreements made between the parties. Although there are standard expectations for commission percentages, these fees are fully negotiable, enabling buyers and sellers to work with their agents to find an arrangement that best meets their needs.<\/span><\/p>\n

Several factors, including the property\u2019s location, current market conditions, and the scope of the agent\u2019s services, can impact the final commission. This flexibility allows both sides to negotiate and adjust the fees according to their budget and objectives. Below is a detailed breakdown of example commission rates based on median home prices in some of <\/span>Texas\u2019s largest cities.<\/span><\/a><\/p>\n\n\n\n\n\n\n
\n

City<\/b><\/p>\n<\/td>\n

Median Home Sale Price<\/b><\/td>\n1.5% Real Estate Commission<\/b><\/td>\n3% Real Estate Commission<\/b><\/td>\n5% Real Estate Commission<\/b><\/td>\n<\/tr>\n
Houston<\/span><\/a><\/td>\n$354,495<\/span><\/td>\n$5,117<\/span><\/td>\n$10,289<\/span><\/td>\n$17,725<\/span><\/td>\n<\/tr>\n
San Antonio<\/span><\/a><\/td>\n$268,950<\/span><\/td>\n$4,033<\/span><\/td>\n$8,069<\/span><\/td>\n$13,448<\/span><\/td>\n<\/tr>\n
Dallas<\/span><\/a><\/td>\n$445,000<\/span><\/td>\n$6,675<\/span><\/td>\n$13,350<\/span><\/td>\n\n

$22,250<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, we strive to offer consumers the best possible value. For sellers, we provide a <\/span>listing fee starting as low as 1%.<\/span><\/a>* For buyers, our fees vary by location but are designed to remain competitive, helping your offer stand out and increasing your chances of success in the homebuying process.<\/span><\/p>\n

\"House<\/p>\n

Can you negotiate real estate commissions in Texas?\u00a0<\/span><\/h2>\n

Yes! In the U.S., there are no regulations or laws dictating commission rates, so agents may be open to negotiating lower fees depending on the transaction type, the services required, and their relationship with the client.<\/span><\/p>\n

When discussing real estate commissions, it’s essential to factor in the level of service the agent provides, their marketing approach, and their expertise in the local market. Sellers might have the opportunity to secure a lower commission if their property is highly attractive or likely to sell quickly.<\/span><\/p>\n

Tips for a successful negotiation<\/span><\/h3>\n