Real Estate Commission Calculator — Houston, TX

Real Estate Commission Rates in Houston, Texas

The typical total real estate commission in Houston is 5.5% of the sale price, based on current market data for Texas. On the median Houston home price of $295,000, that works out to $16,225 in total agent fees.

Following the 2024 NAR settlement, buyer's agent compensation is now negotiated separately in Texas. Most transactions still split the commission 50/50 between listing and buyer agents, but this is no longer required. Sellers in Houston have more flexibility than ever to offer lower buyer concessions.

How Commission Splits Work in Houston

• Listing agent typically receives $8,113 (2.8% of sale price)
• Buyer's agent typically receives $8,113 (if seller offers full split)
• Agent keeps ~70% after broker split: ~$5,679 per side
• Seller nets approximately $278,775 on a $295,000 sale

Tips for Negotiating Commission in Houston

1. List at a higher price point — agents on $600,000+ homes often accept 2–2.5% listing side
2. Compare multiple agents — commission rates in Texas vary by 0.5–1% between agents
3. Use a flat-fee MLS service — pay $300–$500 for MLS listing, offer buyer agent 2.8%
4. Ask about a reduced rate on a simultaneous buy/sell — agents may discount if you're both buying and selling

Frequently Asked Questions

What is the average real estate commission in Houston, TX?

The average total commission in Houston is approximately 5.5%, slightly at or above the national average of 5.0–5.4% following the NAR settlement.

How much does a real estate agent make on a home sale in Houston?

On the median Houston home price of $295,000, a listing agent earns roughly $8,113 before broker split. After a typical 70/30 agent-broker split, the agent takes home approximately $5,679.

Do sellers have to pay the buyer's agent in Houston?

No. Since August 2024, sellers in Texas are no longer required to offer buyer agent compensation through the MLS. Many still do to attract buyers, but it's now fully negotiable.