1. What is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in facilitating a property sale. In Texas, this is typically a percentage of the final sale price, split between the buyer's and seller's agents.

2. How Commission is Calculated in Texas

The standard commission calculation formula is:

Key Points:

• Commission is typically paid by the seller at closing
• The total commission is usually split between listing and buyer's agents
• Texas has no state laws regulating commission rates

3. Typical Commission Rates in Texas

Average Rates:

• Residential properties: 5-6% of sale price
• Commercial properties: 4-8% of sale price
• Luxury properties: May have lower percentage rates

Note: Rates are always negotiable between the agent and client.

4. Using This Calculator

Instructions:

1. Enter the property sale price in USD
2. Enter the commission rate percentage (typically 5-6%)
3. Click "Calculate" to see the total commission amount

5. Frequently Asked Questions (FAQ)

Q1: Who pays the realtor commission in Texas?
A: Typically the seller pays the full commission, which is then split between the listing and buyer's agents.

Q2: Are realtor commissions negotiable in Texas?
A: Yes, commission rates are always negotiable between the agent and client.

Q3: How is the commission split between agents?
A: The total commission is typically split 50/50 between listing and buyer's brokers, who then split their portion with their agents.

Q4: Are there additional fees beyond commission?
A: There may be additional closing costs, but the commission covers the realtor's services.

Q5: Do commission rates vary by city in Texas?
A: Rates are generally consistent statewide, though luxury markets may have different structures.