1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for facilitating a property sale. In Texas, commissions are negotiable but typically range from 5-6% of the sale price, with low-commission options available.

2. How Commission is Calculated

The standard commission calculation is:

Where:

• Sale Price — Final selling price of the property
• Commission Rate — Percentage agreed between seller and agent

Example: For a $300,000 home at 2.5% commission: $300,000 × 0.025 = $7,500 commission.

3. Texas Commission Rates

Details: While traditional rates are 5-6%, discount brokers in Texas may offer rates as low as 1-3%. The total commission is typically split between listing and buyer's agents.

4. Using the Calculator

Tips: Enter the sale price in USD and your negotiated low commission rate (1-3% is typical for discount brokers). The calculator will show your estimated commission payment.

5. Frequently Asked Questions (FAQ)

Q1: Are commissions negotiable in Texas?
A: Yes, Texas law allows full negotiation of real estate commissions between sellers and agents.

Q2: What's included in a low commission rate?
A: Services vary by broker but typically include MLS listing, marketing, and transaction coordination.

Q3: Who pays the commission in Texas?
A: Typically the seller pays the full commission, which is then split between agents.

Q4: Are there additional fees?
A: Some brokers charge flat fees in addition to or instead of percentage commissions.

Q5: How do I find low-commission brokers?
A: Research online or ask for recommendations. Compare services offered at different price points.