Realtor Commission in Texas: Who Pays the Real Estate Buyer’s Agent?

If you’ve read that buyers now have to pay their own real estate agent, here is how it actually works. Real estate commission in Texas is negotiable, it isn’t set by law or by any association, and since 2024 a buyer’s agent’s fee is agreed in writing before the first showing. Who actually covers that fee is then worked out inside each transaction. This post walks through how much commission runs in Texas, how the number gets set, who pays the buyer’s agent, and what that means for you as a Houston buyer.

Updated for 2026 — two things have changed since this article first ran. First, Texas now requires a written agreement before a real estate agent can show you a home. That’s Senate Bill 1968, effective January 1, 2026, which means the compensation conversation happens before the first showing rather than somewhere along the way — I walk through the three forms and what separates them separately. Second, the residential listing agreement Texas sellers sign was rewritten: broker-to-broker compensation came out of Paragraph 5 entirely, and a new option was added for the seller’s broker to earn additional compensation when a buyer is unrepresented. That last one matters if you’re weighing going it alone — the savings may not end up in your pocket.

One term you can stop worrying about: subagency. If you’ve read older articles mentioning a “subagent” — a real estate agent who showed you homes while legally working for the seller — that arrangement no longer exists in Texas. SB 1968 eliminated subagency in every type of real estate transaction as of January 1, 2026, specifically because it confused consumers about whose side their agent was on. Today the person showing you homes either represents you or expressly doesn’t, and the form you sign says which.

How much is realtor commission in Texas?

There is no set rate. Real estate commission in Texas is negotiable between you and your broker, and neither the Texas Real Estate Commission, the National Association of REALTORS®, nor any MLS sets or recommends a rate. Any real estate agent who tells you a percentage is “the standard” is describing that brokerage’s own pricing.

Here is how the number gets set. On the listing side, the seller and the listing broker agree on the listing broker’s fee in the residential listing agreement, usually as a percentage of the sales price or a flat amount. On the buyer’s side, the buyer and the buyer’s broker agree on the buyer’s broker’s fee in the buyer representation agreement, again as a percentage of the sales price, a flat fee, or a combination, and under Texas law that agreement is signed before showings begin.

Because the two fees are negotiated separately, “the commission” on a Texas sale is really two numbers, and either one can move. Property type, price point, how much work the sale will take, and how the brokerage operates all play into what a broker proposes.

One more distinction the “how much does a realtor make” searches are really asking about: in Texas the commission is paid to the sponsoring broker, who then splits it with the real estate agent under their own arrangement. The percentage you see in an agreement is the brokerage’s fee, and the real estate agent’s take-home is a share of it after the broker’s split and their own costs.

Who pays the buyer’s agent in Texas — and what that means for you

In Texas, a buyer’s agent’s compensation is set in writing in the buyer representation agreement before showings begin. That amount can be paid three ways: the seller offers it as part of the listing, the buyer asks for it as a seller concession in the offer, or the buyer pays it at closing. I’ve never had a buyer client pay it themselves; it has been covered within the deal, through the seller’s offer or a negotiated concession. The only way a buyer ends up paying it is by choosing a home where the seller won’t contribute, and we’ll know which way yours is handled before any purchase contract is executed, so there are no surprises at closing.

Each path in practice:

• The seller offers it in the listing. The seller has agreed with their listing broker to compensate a buyer’s broker, and the listing agent tells us the terms when we ask. Offers of compensation are no longer published on the MLS, so this is a question I put to every listing agent before we tour.
• You ask for it as a seller concession. If the seller hasn’t pre-authorized it, we write the buyer’s broker’s fee into the offer as a term the seller pays at closing, right alongside price, closing-cost help, and the option period. Sellers evaluate the whole package.
• You pay it at closing. This applies only if you choose to buy a home where the seller won’t contribute: the fee in your representation agreement is then settled at the closing table. It is the one path none of my buyer clients has taken, you know where it stands before any purchase contract is executed, and whether to sign is always your decision.

Whichever path applies, the fee was agreed when you signed with me. What gets negotiated on each home is who funds it, and I handle that negotiation for you the same way I handle every other term of your contract.

Who pays realtor fees in Texas on the seller’s side?

The seller pays their own listing broker under the listing agreement, and that fee is settled out of the seller’s proceeds at closing. Since the 2026 rewrite of the Texas REALTORS® residential listing agreement, that agreement no longer carries a broker-to-broker compensation term in Paragraph 5. What the seller offers toward a buyer’s broker is a separate decision, made with their listing agent when the home is listed or negotiated in the offer. The same agreement now lets a seller pre-agree to pay their own broker more when the buyer arrives unrepresented, which is why an unrepresented buyer’s “savings” often change hands before they reach the buyer; I cover that in buying a house without a realtor in Texas.

What changed in 2024?

A national legal settlement involving the National Association of REALTORS® reshaped how real estate buyer’s agent compensation works. Two things matter most for you: multiple listing services can no longer advertise offers of compensation to real estate buyer’s agents, and buyers now sign a written agreement with their real estate agent — spelling out the services and the fee — before touring homes. You can read the background straight from the National Association of REALTORS®.

Do sellers still offer to pay the buyer’s agent in Texas?

Here’s what the headlines leave out. Sellers are no longer required to pay a real estate buyer’s agent commission, but offering to cover it still makes a home easier to market, and listing agents know it. In my own closings, every seller has covered it, either in the listing or as a concession we negotiated, so on a resale listing it is a negotiating point rather than a closed door, and you’ll know where it stands before any purchase contract is executed.

New construction: builders almost always pay

If you’re considering a new home, almost all new-home builders still offer to pay the real estate buyer’s agent commission. It’s built into how they market their communities — so bringing your own real estate agent (registered on your first visit) doesn’t cost you more, and it puts an experienced negotiator on your side of the table. More on that in using a real estate buyer’s agent for new construction, and I break down exactly how the builder’s side of it works in who pays the realtor commission on a new-construction home.

What if a seller won’t pay? Now you have a choice

Once in a while you’ll find a home where the seller isn’t offering to cover the real estate buyer’s agent fee. When that happens, you simply have a decision to make — and several good options:

• Negotiate it: ask the seller to contribute as part of your offer. Who pays the real estate buyer’s agent is now a normal, expected part of the purchase negotiation.
• Work it into your offer: adjust the price or terms so the overall numbers work for you.
• Cover it yourself: if it’s the right home, you can pay your real estate agent directly at closing.
• Keep looking: with so many homes on the market right now, you’re rarely locked into one option — plenty of other sellers are glad to work with a represented buyer.

What this means for you as a Houston buyer

We’ll have one honest conversation up front — before we tour homes — about how I’m compensated and how we’ll handle it on each property. From there, my job is to get that fee covered within the transaction wherever the deal allows, whether through a seller’s offer, a builder’s offer, or a concession we negotiate into your contract, and to tell you plainly, before you write the offer, how a particular home is going to be handled. Transparent, negotiable, and firmly on your side. If you’re still choosing a real estate agent, start with how to choose a Realtor; for the bigger picture, see the home-buying page, a little about me, and the difference between a real estate agent, a broker, and a REALTOR®. You can also verify any Texas license with the Texas Real Estate Commission.

Realtor commission in Texas: quick answers

Who pays realtor commission in Texas?

Each side pays its own broker by agreement. The seller pays the listing broker under the listing agreement, and the buyer’s broker’s fee is set in the buyer representation agreement. That buyer-side fee can be offered by the seller in the listing, requested as a seller concession in the offer, or paid by the buyer at closing; in every closing of mine it has been covered within the deal.

How much is realtor commission in Texas?

There is no standard or published rate in Texas or in Houston. The Texas Real Estate Commission does not set one, and neither does any association or MLS. Every fee is negotiated and written into an agreement before any showing: one brokerage can charge more or less than another, use a flat fee, or structure the fee differently, and the listing side and the buyer’s side are set independently. The commission is paid to the broker, who then splits it with the real estate agent under their own arrangement. The only number that matters on your sale is the one in your signed agreement.

Does the seller pay the buyer’s agent in Texas in 2026?

Sellers are no longer required to, but in my own closings they have. Since the 2024 NAR settlement and the 2026 rewrite of the Texas listing agreement, a seller decides with their listing agent whether to offer compensation to a buyer’s broker, and a buyer can also request it as a concession in the offer. I’ve never had a buyer client pay it themselves; it has been covered by the seller, either in the listing or as a concession negotiated in the offer. The only way a buyer would pay it is by choosing a home where the seller won’t contribute, and you know where it stands before any purchase contract is executed.

Can you negotiate realtor commission in Texas?

Yes. Both the listing broker’s fee and the buyer’s broker’s fee are negotiable, and the buyer’s fee must be agreed in writing before a Texas real estate agent shows you a home. Who funds the buyer’s side is then negotiated on each property as part of the offer.

Last updated: October 2026 · Reflects the August 2024 NAR settlement, Texas SB 1968 (effective January 1, 2026), and current Texas buyer-representation practice.

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