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How Real Estate Agent Commissions Work in Houston

Houston real estate commissions average 5.61% in total. See who pays, Texas flood and MUD disclosures, costs at Houston prices, and how to negotiate.

Gray-green shingled Craftsman bungalow with tapered porch columns behind a wrought-iron fence in Houston Heights
Photo: D. C. McCollum House, Houston Heights by Ed Uthman, CC BY 3.0, via Wikimedia Commons.

Houston real estate commissions average about 5.6% of the sale price, divided between the listing agent and the buyer’s agent and paid through the title company when the sale closes. Texas buyers now sign a written agreement that sets their broker’s fee before the first showing. With more than half of Houston metro sales including a seller concession, asking the seller to cover that fee is a normal part of an offer.

Average total commission in Houston

5.61%

of the final sale price, or $19,177 on the $341,837 median sale.

Listing agent
2.75%About $9,401 on a median-priced home
Buyer's agent
2.87%About $9,811 on a median-priced home

Rates: Clever Real Estate agent survey, Updated October 1, 2026. Median sale price: Redfin, September 2026. Clever's Houston rates match its Texas statewide average, so read them as a Texas benchmark that local agents may price above or below.

How Much Is the Real Estate Commission in Houston?

Clever Real Estate’s October 1, 2026 update puts the average total commission in Houston at 5.61%: 2.75% for the listing agent and 2.87% for the buyer’s agent. Clever compares that with a 5.46% national average. Clever reports the same 5.61% total for Texas as a whole, so the Houston figure works as a statewide benchmark.

Here is how other published figures compare, each measured a different way:

Swipe to see all columns

SourceWhat it measuresRate
Clever Real EstateUpdated October 1, 2026Total commission, Houston5.61% (2.75% + 2.87%)
Redfin4 weeks ending July 14, 2024Buyer's agent only, Houston metro MLS data2.86%
HomeLightUpdated September 23, 2026Typical total, estimate from a Houston agentAbout 6%
Texas REALTORSLegal FAQ updated September 8, 2025Industry-standard rateNo standard rate

The HomeLight figure is an estimate from Houston agent Ryan Adams, who described a 3% buyer side and a 3% seller side as typical in Texas. Redfin’s 2.86% comes from MLS listings in the Houston metro that offered a buyer’s agent commission in the four weeks before the August 2024 rule change.

No rate is fixed. The Texas Real Estate Commission (TREC) says it does not regulate real estate fees, which are set by your agreement with each professional (TREC).

What Commission Costs at Houston Prices

Redfin reported a $341,837 median sale price in Houston in September 2026. At 5.61%, total commission on that home comes to about $19,177. A 3% buyer-agent fee on the same price is about $10,255.

Houston has far more sellers than buyers right now:

  • Redfin estimated 134.6% more sellers than buyers in the Houston metro in September 2026, one of the three largest seller surpluses among the 50 biggest metros (Redfin).
  • The Houston Association of Realtors counted 40,192 active single-family listings in September 2026, up 6.3% from a year earlier, and a 5.5-month supply of homes (HAR via Houston Agent Magazine).
  • In the city, homes sold for 96.7% of list price and spent a median of 49 days on the market in September 2026, up from 45 days a year earlier (Redfin).

Sellers in that market help with buyer costs often. Redfin found seller concessions in 58.5% of Houston metro sales in the three months ending August 31, 2026, up 3.9 points from a year earlier and above the 44.7% national share (Redfin).

This table shows the dollars at three Houston price points, with what a buyer keeps under TurboHome’s flat fee:

Swipe to see all columns

Commission in dollars at Houston price points
Home priceBuyer side at 3%TurboHome flat feeTurboHome rebate
$244,931Northside-Northline median, September 2026Total commission at 5.61%: $13,741$7,348$5,000$2,348
$341,837Citywide median, September 2026Total commission at 5.61%: $19,177$10,255$5,000$5,255
$664,814Greater Heights median, September 2026Total commission at 5.61%: $37,296$19,944$10,000$9,944
Buyer side uses a 3% planning assumption. Actual compensation is set in your buyer agreement and offer. The rebate is the buyer-agent compensation received minus TurboHome's flat fee, credited at closing with lender approval.

The neighborhood medians are from Redfin’s Northside-Northline and Greater Heights pages for September 2026.

Who Pays the Commission in Houston?

Sellers pay their listing broker under the listing agreement, and Clever notes that the fee comes out of the seller’s proceeds at closing.

Your own broker’s fee is set in your buyer agreement. Under the Texas REALTORS long-form buyer representation agreement (TXR 1501), your broker will try to collect the fee from the seller or the listing broker, and you still owe it if neither one pays (Texas REALTORS guide to Paragraph 12). Read that clause before you sign so you know your share if a seller says no.

In a market with this many concessions, plan the request into your offer from the start. Decide with your agent whether to ask for the full buyer-agent fee, part of it, or help with closing costs, and how that request compares with a lower price.

Texas Disclosures That Shape a Houston Offer

Two Texas notices give Houston buyers information that can change what a home is worth to them, and a percentage fee moves with the price you agree to.

Flood history. Texas Property Code Section 5.008 requires the seller of a home with one dwelling unit to give the buyer a written disclosure notice (Texas Property Code 5.008). The flood questions cover:

  • Current flood insurance coverage
  • Past flooding from a reservoir breach or controlled release, and past water entry from a natural flood
  • Whether the property sits wholly or partly in a 100-year floodplain, 500-year floodplain, floodway, flood pool, or reservoir
  • Any flood damage claim filed with an insurer, including the National Flood Insurance Program
  • Any FEMA or Small Business Administration assistance for flood damage

Utility district taxes. Some Houston-area homes sit in a municipal utility district (MUD) or another special district that levies its own property tax. Texas Water Code Section 49.452 requires a seller of property in a covered district to give you a written notice of the district’s tax rate and bonds before you sign a binding contract. If you sign without it, you can terminate the contract (Texas Water Code 49.452). TREC publishes a notice form sellers can use when the district does not provide its own (TREC form).

Read both before you settle on price and fee requests, since a high district tax rate or a flood claim history affects your monthly cost and your negotiating position.

What Changed for Houston Buyers Since 2024

The NAR settlement rules took effect nationally on August 17, 2024 (NAR). Texas then passed SB 1968 in 2025, and its buyer agreement rules started January 1, 2026 (TREC). The main changes:

  1. A written agreement comes first. An agent must sign an agreement with you before showing you a residential property, or before presenting your offer if you never tour.
  2. The fee is spelled out. The agreement states the amount or rate your broker will receive and how it is determined, along with a conspicuous statement that broker compensation is not set by law and is fully negotiable.
  3. The terms are spelled out too. It must also list the services, the end date, whether it is exclusive, and whether the agent represents you.
  4. Showing-only is an option. An agent can show you a home without representing you under a non-exclusive agreement of 14 days or less, with no advice on the property or the deal.
  5. Your fee is capped. NAR’s rules bar your agent from receiving more than the agreed amount from any source.
  6. The MLS no longer lists buyer-agent offers. Sellers can still offer compensation outside the MLS.

Texas license holders must also hand you TREC’s Information About Brokerage Services form the first time you discuss a specific property. It explains how an agent can represent you and what minimum services a client is owed (TREC).

Where the Commission Goes After Closing

The title company runs the closing and pays out the commissions. Each broker sends the title company a Commission Disbursement Authorization that shows the amount it is owed, according to Texas REALTORS (Texas REALTORS guide to Paragraph 12). The Texas Department of Insurance says the Texas title premium includes the charge for closing the transaction, and you can pick any title company you want (TDI).

The money goes to each brokerage first. HomeLight notes that both agents typically share a percentage of their commission with their sponsoring broker, so an agent keeps less than the headline figure (HomeLight).

How to Negotiate Commission in Houston

Use the market conditions and the paperwork together:

  1. Collect written fees from several agents. Ask for the flat amount or rate and what it covers before any showing.
  2. Use Houston’s inventory. With a 5.5-month supply and far more sellers than buyers, a request for the seller to cover your broker’s fee is common.
  3. Read the flood and MUD notices before you set your price. Both can justify a lower offer or a larger concession request.
  4. Ask builders in writing. On a new home, ask the builder before your first visit whether it pays a buyer’s broker, how much, and what registration it requires.
  5. Ask about a rebate. A Texas buyer’s broker can return part of its compensation to you with lender approval.

Sellers can negotiate the listing fee too, and can set any amount offered to a buyer’s broker separately.

Can You Get a Commission Rebate in Texas?

Yes. In its FAQ, TREC says a license holder who represents only buyers may advertise a rebate of part of their compensation, provided the ad complies with TREC Rule 535.155 on any restrictions (TREC).

TREC adds that the buyer’s lender may limit a rebate. Your broker should notify the lender and get its consent, because the credit can affect how the lender evaluates you. Bring it up when you apply for your loan.

How TurboHome Handles Commission in Houston

TurboHome is a flat-fee buyer’s brokerage with a Texas brokerage license. You pay a set fee tied to the purchase price, and eligible buyer-agent compensation above that fee is returned to you as a TurboHome rebate at closing, subject to lender approval. The fee is $5,000 for homes up to $500,000, $10,000 from $500,001 to $1,000,000, $15,000 from $1,000,001 to $2,000,000, and $20,000 from $2,000,001 to $3,000,000.

At Houston’s $341,837 citywide median, the purchase falls in the $5,000 tier. Your agent is an employed, licensed local Realtor, and the service includes unlimited private tours (with seller or listing-agent permission), offer strategy, negotiation, and closing support. The TurboHome rebate depends on the compensation actually received and on lender approval.

To go further, see how the Houston buyer rebate is credited, estimate the income needed to buy in Houston, or try your price in the commission rebate calculator.

Sources

Houston Commission FAQs

What is the average real estate commission in Houston?

Clever Real Estate's October 1, 2026 update puts the Houston average at 5.61% of the sale price in total, with 2.75% to the listing agent and 2.87% to the buyer's agent. Each side is negotiated separately.

Who pays the buyer's agent in Houston?

Your buyer agreement sets your broker's fee. Your broker can try to collect it from the seller or listing broker, and under the Texas REALTORS long-form buyer agreement you still owe it if they do not pay. Redfin reported seller concessions in 58.5% of Houston metro sales in the three months ending August 31, 2026.

Do Houston sellers have to disclose flooding?

Yes, for a home with one dwelling unit. Texas Property Code Section 5.008 requires a seller's disclosure notice that asks about flood insurance coverage, past flooding, location in a 100-year or 500-year floodplain, flood insurance claims, and FEMA or SBA flood assistance.

What is a MUD notice?

Texas Water Code Section 49.452 requires a seller of property in many utility and drainage districts to give you a written notice of the district's tax rate and bonds before you sign a binding contract. If the contract is signed without it, you can terminate.

Do I need a written agreement before touring homes in Texas?

Yes. Since January 1, 2026, a license holder must have a written agreement with you before showing you residential property, or before presenting your offer if no home is shown. The agreement must say that broker compensation is not set by law and is fully negotiable.

Can a Houston buyer get a commission rebate?

Yes. TREC says a broker who represents buyers may advertise a rebate if the ad follows TREC Rule 535.155 on any restrictions. Your lender may limit the rebate, so your broker should get the lender's consent before closing.

Keep more of the commission on your Houston home

TurboHome charges a flat fee and credits eligible buyer-agent compensation above it back to you at closing. Talk with a licensed local agent about your price range.

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About the Author

Vinura Abeysundara

Vinura Abeysundara is a real estate and growth professional with experience scaling homebuying platforms across Canada and the United States. Formerly Head of Growth at Zown, he now works with TurboHome and writes about homebuyer savings, flat-fee real estate, commissions, and technology in real estate.

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About Jake Shuler

Agent, Texas

Jake Shuler is a Texas REALTOR® with more than 10 years of real estate experience and over 200 successful transactions. As an agent at TurboHome, he helps buyers navigate the Texas housing market and writes about homebuying, negotiations, local market trends, and ways buyers can save throughout the process.

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