F
or years in Texas, selling a home required paying both the seller's agent commission and the buyer's agent commission, typically 5-6% of the sale price. However, a recent lawsuit settlement has changed this, allowing sellers to not pay the buyer's agent fee if they choose not to. Still, sellers must pay their own agent for services rendered.
In Texas, real estate commissions averaged 5.76% in September 2024, with the split between agents almost even at 2.87% and 2.89%. For a $348,600 median-priced home, this translates to a total commission of $20,079, split evenly between both agents.
A real estate agent's services vary depending on whether you're buying or selling. A buyer's agent can help find properties within budget and negotiate the purchase price, while a seller's agent will research comparable homes, market the property, host open houses, and negotiate deals.
Historically, sellers paid both commissions, but new rules allow them to opt out of paying the buyer's agent fee. Many still choose to pay it to make their listing more appealing. When negotiating your deal, ensure your contract clearly outlines who pays which commission and how much.
Whether real estate agents are worth the cost is a valid question. As an alternative to hiring an agent, sellers can go for sale by owner, but this requires handling all aspects of the transaction themselves. Buyers, on the other hand, may benefit from an experienced agent's guidance in finding homes and negotiating prices.
To save on fees, consider negotiating commission rates with your agent or working with a low-commission broker. Alternatively, selling by owner or to a cash home buyer can reduce costs, but be aware of the trade-offs involved.
When selecting a Texas real estate agent, discuss their commission fee upfront and ask about services provided in exchange. Look for an agent familiar with your area to get the most value for your money.
