Texas Real Estate Commission Calculator
This realtor commission calculator for Texas estimates the commission on any home sale in the state. There is no set commission rate in Texas, and every deal is negotiable.
A home sells for $ with listing broker compensation of % and buyer broker compensation of %.
Every rate is negotiable. Texas has no set or “standard” commission. Buyer broker compensation is optional and only included if the seller chooses to offer it; set it to 0 if none is offered.
Estimates for illustration only; compensation is negotiable and set by written agreement. Texas Ally Real Estate Group, LLC.
Example Real Estate Commissions
Rates in Texas are negotiable, so the numbers below are illustrations rather than standards. Here is what common rates come to at typical Texas price points.
| Home price | 3% commission | 4% commission | 6% commission |
|---|---|---|---|
| $250,000 | $7,500 | $10,000 | $15,000 |
| $350,000 | $10,500 | $14,000 | $21,000 |
| $500,000 | $15,000 | $20,000 | $30,000 |
| $750,000 | $22,500 | $30,000 | $45,000 |
How real estate commissions work in Texas
A real estate commission is a percentage of the final sale price, agreed in writing before the home is listed. Historically, many listings were marketed with a total commission that covered both the listing broker and the buyer broker. Today, listing broker compensation and buyer broker compensation are negotiated separately. In Texas there is no legal, standard, or “official” rate: the Texas Real Estate Commission (TREC) regulates licensing and conduct, not pricing, and every commission is negotiable between you and your agent.
The calculator takes listing broker compensation and buyer broker compensation as two separate inputs and totals them, since the two are negotiated separately under current Texas practice. The buyer-side amount is only included when it is offered, and it can be zero.
What happens to the commission after closing?
When your home closes, the commission isn’t typically paid directly to the individual real estate agents. Instead, it’s paid to the brokerages involved in the transaction. Each brokerage then compensates its agents according to the agreement they have in place, which varies from brokerage to brokerage.
How much commission does a realtor make in Texas? Less than the figure on the settlement statement, because every brokerage has a different compensation model and the amount an individual agent receives may be very different from the commission shown at closing. Some brokerages use traditional percentage splits, while others use capped or flat-fee models.
If you’re a Texas real estate agent and want to estimate what you would actually earn, try our Texas Real Estate Commission Split Calculator, which compares different brokerage compensation structures.
Texas Ally uses a flat-fee compensation model that allows many agents to keep more of their commission than they might under a traditional percentage split.
Frequently asked questions
Is 6% the standard commission in Texas?
No. There is no standard rate in Texas, and agreeing on one across brokerages would violate antitrust law. Six percent is a historical convention that many deals still land near, but actual rates vary by price point, market conditions, services included, and negotiation. The calculator defaults to 6% only as a starting point; set it to whatever you’ve agreed or been quoted.
Who pays the buyer’s agent after the 2024 rule changes?
It’s negotiated deal by deal. Buyers agree on compensation with their agent in writing up front. The seller can offer to cover some or all of it as a concession, the buyer can pay it directly, or the two can split it. It is simply a term of the offer like anything else.
Should I offer buyer broker compensation?
It is a strategic choice, not a requirement. Offering compensation to the buyer’s broker can widen your pool of buyers, since many buyers have limited cash left after their down payment and closing costs. Declining to offer it can save money on paper but may shrink the field, or simply move the request into the offer as a negotiated concession. Many sellers decide offer by offer: you can advertise nothing up front and still agree to compensation as part of a specific contract. Talk it through with your listing agent based on your market and price point.
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