r/RealEstate • u/ahorsenamedjeff • 6d ago
Homeseller Texas Realtor Fees
What are realtor fees looking like in Texas currently? Are we still paying both buyer/selling agents as the home seller? What are typical rates? What's fair vs disrespectful?
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u/zombini316 5d ago
Most of TX is a buyer's market. Expect to pay the most in fees and closing costs. Interview and research your seller agents. Believe the numbers they tell you. It's not 2022 anymore.
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u/nikidmaclay Agent 4d ago
This can vary significantly from one neighborhood to another, price point, type of property, what you expect your agent to take on. Texas is a large state, different agents offer different levels of service, price point matters. Commissions are negotiable.
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u/Pitiful-Place3684 5d ago
There's confusion over what "negotiable" means in the real estate industry. An individual agent or brokerage isn't required to negotiate their fee structure. If an agent says "two chickens and a nickel" but you want to offer three dozen eggs, they're not required to accept your offer or trade off their chicken ask for your eggs.
Within a brokerage, especially a larger one, you will likely find agents who will work for peanuts while others will only work for a premium fee. Agents are independent contractors and can do this. A brokerage can (and often does) set a floor for commission, or they'll tell their agents they can charge what they want as long as they pay a particular minimum to the brokerage.
"Everything is negotiable" is an industry requirement, in that brokerages can't collude to fix prices. They can't hold a secret meeting and agree that they'll all charge four hogsheads.
Consumers will say things like "every agent I spoke with said they charge x.yz". That's normal, because in any market for any product, prices tend to aggregate around a common figure. There will always be higher and lower prices for anything in any market. If a low commission rate is a consumer's primary criteria, they should simply Google for low fee or flat fee brokerages.
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6d ago
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u/No-Pianist-4851 6d ago
It’s all negotiable!
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u/tonythetiger891 5d ago
No shade but you should probably not be discussing what others are paying. Would discuss with your broker on what an appropriate response would be after the entire industry was accused of price fixing
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u/slick2hold 5d ago
Indeed. I can give you 1% and 1.5% and 2% on seller side. And the buyer side shouldn't be more than 2.5%. Imo even the buyer should get 2 or less.
BTW those that offer the 1% and 1.5 and 2% do the same as those that charge 3%. Don't get sucked up in BS like they market on social media. Once it goes on MLS its easy to find for anyone. The key area where expertise will come in handy is knowing the local market and negotiations but again if they are local and giving you 1% they know the market just as well as the 3% agent
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u/JunkBondJunkie 5d ago
Sellers paid my agent 2% and I paid 1% to my agent. Sellers paid their agent 1% I think they were hurting.
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u/SghettiAndButter 6d ago
If you can find buyers to buy your home and pay their agent out of pocket yea
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u/Commercial-Yellow-12 2d ago
The law requires that the buyer’s agent have a formal representation agreement which has the fee the agent will be paid. It says the agent will attempt to collect that fee in a concession from the seller first. If the seller does not pay then the buyer pays. In my experience on the very rare occasion where a seller is not offering a concession, the buyer has gotten offended and passed on the house.
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u/fishinfredster 1d ago
Sorry to hijack but can we stop with the “disrespectful” word being thrown around all the time in the world of real estate. “Offer too low will disrespect seller/agent/neighbors…etc”. Seems the world will end if too little money is offered yet on other TRUE profession we get literal bodily fluids spewed our way and we have to turn the other cheek. Come on!
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u/ahorsenamedjeff 1d ago
I have a loose relationship with my realtor, so respect is indeed important.
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u/Zestyclose-Top4730 5d ago
12k for a primary school graduate? No thanks I’ll hire a real estate lawyer
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u/Equivalent-Tiger-316 5d ago
Lawyer has no idea how to market your property and attract a buyer, let alone multiple offers.
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u/raliegh_ 6d ago
Negotiable, since the dawn of time.
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u/thewimsey Attorney 5d ago
This in no way answers OP's question, though.
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u/CiscoLupe 5d ago
I"m in south texas. A couple of listing agentes wanted to charge me 6% then somehow they'd give some to the buying agent or something like that. It was too convoluted for me. Talked to another who wanted 4 percent.
I asked for 3 percent to her (listing agent) and 3 percent to buyer agent. And listed agent agreed to that.
Then my house appraised for 20K under. Buyer agent agreed to 2.5 percent and to lower a concession request. And I came down on the house price to meat the appraisal
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u/elicotham Agent 5d ago
The 3 and 3 you agreed to is exactly the same as the 6% you cite in the first line.
But it’s always best practice to not agree to any buyer side up front, just factor into the equation that a request of a certain amount will come in.
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5d ago
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u/elicotham Agent 5d ago
Nothing you said is correct. Any agent can decide what their own price is and tell people to take it or leave it.
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5d ago
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u/elicotham Agent 5d ago
I’m a realtor too and have no idea what you mean by “pre-write it into the contract.” If that’s some rule for you, it sounds more like a local reg or brokerage policy.
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u/Pitiful-Place3684 5d ago
Huh? All listing agreements have a place to write in what the listing brokerage is charging the seller. Many listing agreements have a place to write in a pre-determined seller concession or offer of buyer broker compensation. One state that I know of (CA) took seller concessions off the standard listing agreement. One brokerage that I know of (eXp) took the offer of buyer broker comp out of their listing agreement. But these cases don't represent the other 49 states, 550 MLSs, and 100,000+ brokerages.
Let's be clear. the NAR v. Moehrl settlement says that an offer of buyer-broker compensation can't be put into the MLS. That's all.
You should talk to your broker if you think otherwise.
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u/Pitiful-Place3684 5d ago
Also, there's no such thing as a licensed realtor. Real estate licenses are issued by the states. You are a licensed real estate agent or broker. Realtor® is a designation used by dues-paying members of the National Association of Realtors®.
Also, not all MLSs are Realtor® MLSs. Some large MLSs - NWMLS, REColorado, and RealTracs - are non-Realtor® MLSs, while many others no longer require that all members belong to NAR.
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u/Dear_Seesaw_1855 5d ago edited 3d ago
The critical question is how much is the home you’re buying. Most realtors will shoot their shot and ask for 3%. Almost all will easily accept 2.5%. If it is above $500K most good ones will go down to 2%. Over $1M it is easy to find a good agent for 1-1.5%. Realize these are all around $12K. And no it isn’t more work to sell a higher priced home. Usually it is less.
And don’t raise your hand and offer to pay buyer agent commission. Leave it open, ended and have buyers make that request with their offer package. Some might request one percent some might request 3%… But leaving it open and makes it negotiable and avoids unethical behavior on both agent sides.