1. What is Realtor Commission?

In Texas, real estate agents typically earn their income through commissions paid by the seller at closing. This commission is usually a percentage of the home's final sale price and is split between the buyer's and seller's agents.

2. How Commission is Calculated

The standard commission formula is:

Where:

• \( Sale\ Price \) — Final selling price of the property
• \( Commission\ Rate \) — Agreed percentage rate (typically 5-6% in Texas)

3. Texas Commission Rates

Details: While commission rates are negotiable, the typical range in Texas is 5-6% of the sale price. This is usually split between listing and buyer's agents.

4. Using the Calculator

Tips: Enter the home's sale price and the agreed commission rate. The calculator will show the total commission amount that will be deducted from your sale proceeds.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed in Texas?
A: No, commission rates are always negotiable between the seller and their agent.

Q2: Who pays the commission in Texas?
A: Typically the seller pays the full commission, which is then split between both agents.

Q3: Can I negotiate a lower commission rate?
A: Yes, commission rates are not set by law and can be negotiated with your listing agent.

Q4: When is the commission paid?
A: The commission is paid at closing from the sale proceeds.

Q5: Is the commission tax deductible?
A: For sellers, the commission is typically deducted from the sale price before capital gains are calculated.