How Much Do Real Estate Agents Make in Texas (or Anywhere)?

Answer:

As of December 2020, real estate sales agents in Texas make an average salary of $42,048, with the range falling between $41,077 and $53,485. The salary can depend on several factors such as location, educational attainment, certifications, additional skills, and years of professional experience.

For instance, here are some of the differences in average salary in terms of location:

  • Tivoli, TX – $39,849
  • Adkins, TX – $41,525
  • Wylie, TX – $42,200
  • Zephyr, TX – $38,608
  • Boling, TX – $43,548

Meanwhile, here are the salary differences when it comes to educational attainment:

  • No diploma – $42,260 to $42,821
  • High school diploma or technical certificate – $42,333 to $43,690
  • Associate’s degree – $42,378 to $44,037
  • Bachelor’s degree – $42,222 to $44,559
  • Master’s degree – $42,496 to $45,428
  • PhD or equivalent – $42,525 to $45,776

For more information about the salary of real estate agents, check out this article: How to Become a Real Estate Agent.

States With the Lowest Real Estate Agent Salaries

It’s important to note that even the lowest paying areas for real estate professionals still pay extremely well compared to other career paths. Currently, the lowest average state wage for a real estate agent is $60,957 in North Carolina. That’s more than enough money to live in that area comfortably, and you’ll only have to pay a flat 5.25% income tax. It may not pay as well as real estate agent’s work on the East and West coasts, but it’s still a good living— and Uncle Sam won’t take as big of a cut!

As I mentioned earlier, looking for opportunities in different parts of the country can lead to more opportunities in high-paying areas. For example, a comparatively low-paying state like Florida makes for a great starting point to build your resume and save money for the future. This makes moving on to higher paying positions much easier down the line.

Florida Housing Market Update: April 2021

Unfortunately, some of these areas will also have limited opportunities to work as a real estate professional due to a lack of interest. Consequently, it might be tough to get your foot in the door if you don’t have any connections in the area. But at the same time, lower paying states means less competition, so you can generate leads in your area more easily.

 “Looking for opportunities in different parts of the country can lead to more opportunities in high-paying areas.”

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What Do Real Estate Agents Do?

Real estate agents are licensed professionals and industry experts who act as an advocate and guide for their clients to ensure the absolute best outcome for their real estate transaction.

They will utilize their local market knowledge, education, and extensive experience to navigate the many hurdles that often happen during a real estate sale, from listing to close.

For sellers, they will appraise your home to establish a fair market value to help you decide on a listing price, and will market your home to potential buyers. Buyers can expect their agent to do research on your behalf to find available homes that meet your criteria and to take you to view those homes.

They will offer guidance, answer questions, negotiate with the other party on your behalf, prepare the contract, troubleshoot any issues that might arise, and walk you through every step of the process.

What are the highest paying jobs in Texas?

Here are the 10 highest-paying jobs in Texas, as indicated by the U.S. Bureau of Labor Statistics:

  1. Chief executive officer. Average salary: $239,060 per year.
  2. Surgeon. Average salary: $234,860 per year.
  3. Family and general practitioners.
  4. Psychiatrist.
  5. Obstetrics and gynecology physician.
  6. Pilot.
  7. Dentist.
  8. Oral surgeon.

How long is Realtor school in Texas?

Getting a Realtor license in Texas involves multiple steps that span several months. While the individual pace can vary, on average getting a real estate license in Texas takes four to six months. However, you can complete the requirements in eight weeks if you are committed to an intense study schedule.

Is real estate a good career in Texas?

Real estate is one of the best career paths to transition to when you’re ready to make the switch due to its flexibility, freedom and the fact that almost anyone can be a real estate agent. All you need to do is get your real estate license.

Are Realtors happy?

Real estate agents have high job satisfaction rates. According to a study from Market Leader, 60% of real estate agents are more likely to be happy with life relative to workers in other industries. As for happiness in relation to their career, 84% of agents are happy working in real estate.

How much do realtor fees in Texas cost?

Realtor fees in Texas typically cost around 5.59% in total. This includes both the listing fee and buyer’s agent fee. 

Here’s how much the average Texas home seller can expect to pay in realtor fees at different price points:

Home sale priceAvg. Texas realtor fee
$100,000$5,590
$250,000$13,975
$500,000$27,950
$750,000$41,925

Realtor fees are generally paid by the seller out of their proceeds at closing. You typically don’t owe your agent anything until your house sells. 

Here’s how much the average Texas seller would pay in commission fees and closing costs on the sale of a median-priced home:

CategoryAmount
Home sale price$313,339
Realtor fees-$17,516
Seller closing costs-$3,640
Mortgage payoff-$31,510
Seller net$260,937

How are realtor fees split in Texas?

When you sell a home with a realtor in Texas, your listing agent will typically take home 1.36% of the total sale price.

Less than you thought, right? Even though the typical realtor fee in Texas is 5.59%, that money is actually split between your agent, the buyer’s agent, and each of their brokers.

Here’s an example of how commission is often split on a sale in Texas:

CategoryPercentage
Seller’s agent take home1.36%
Seller’s agent’s broker split1.36% (~50% of the seller’s agent’s commission )
Buyer’s agent take home1.44%
Buyer’s agent’s broker split1.44% (~50% of the buyer’s agent’s commission )
Total commission5.59%

What factors affect realtor commission rates in Texas?

As a Texas seller, here are the factors that you should be aware of when it comes to realtor commission rates.

The Texas housing market favors sellers

Texas sellers may be able to negotiate lower rates with their agents because the housing market currently favors sellers. This is because there are more buyers looking for homes than there are available homes for sale.

The seller's market in Texas will persist as long as population growth trends continue and housing inventory remains scarce. Texas has added 4 million people to its population since 2010, according to the U.S. Census — more than any other state in the US. [1]

But home buyers have few listings to choose from. Active Texas home listings are down 39.0% over the past year, falling the most in Dumas (17.9% drop), College Station (42.2%), and Uvalde (29.6%).[2]

Texas homes are selling quickly in major cities

Commission rates may trend lower in Texas because the homes that are on the market are more likely to sell quickly — especially in major cities. When homes fly off the market, that creates less work for agents, and realtors may be willing to charge you a lower rate than they would in a buyer's market.

Across the Lone Star state, homes sell in an average of 30 days, but they sell much faster in Austin (22 days), Dallas (24 days), and Wichita Falls (25 days).[3]

Home values in Texas are rising

As a Texas home seller, the value of your home may be rising, which increases the cost of realtor commission when you sell your home. In Texas, median home prices are up 24.1% statewide and are expected to rise further in the coming year.

Here's where Texas home values are forecasted to rise the most in 2022:

AreaProjected increaseAthens 10.8% Killeen 11.9% Dallas 10.8%

If you're selling a more expensive home (above $500,000 in most markets), you may have more leverage to negotiate a lower rate with your realtor. Realtors earn a larger dollar amount on pricier homes, although it doesn't necessarily require more work.

However, if your home is less expensive or not in market-ready condition, an agent likely won't want to lower their overall rate — because they'll receive a smaller dollar amount for their work.

Highest paying cities for Real Estate Agents in Texas

  1. Dallas, TX $108,986 per year 192 salaries reported

  2. Austin, TX $108,386 per year 308 salaries reported

  3. Fort Worth, TX $102,857 per year 74 salaries reported

  1. San Antonio, TX $101,621 per year 278 salaries reported

  2. Southlake, TX $97,368 per year 18 salaries reported

  3. Arlington, TX $96,248 per year 36 salaries reported

  1. Amarillo, TX $93,976 per year 9 salaries reported

  2. El Paso, TX $93,093 per year 26 salaries reported

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FAQs about average real estate commission in Texas

In Texas, realtor commission rates are completely negotiable — but not all agents will be willing to negotiate their fees. You’ll typically agree on a rate with your agent before you sign a listing contract. Learn more about how to negotiate realtor commissions.

Yes. In Texas, the listing agent usually splits the commission with the buyer’s agent – but not always down the middle. On average, listing agents earn slightly less per transaction than buyer's agents, with 2.71% going to the listing agent and 2.88% to the buyer's agent. Learn more about how realtor fees work.

The average Texas realtor commission rate in 2022 is 5.59%, with listing agents earning an average split of 2.71% and buyer's agents earning an average split of 2.88%. Listing agents earn around $8,491 per home sale in Texas, using the state's average selling price of $313,300 and the typical commission rate of 2.71%.

Realtors in Texas will make a commission around $2,800 on the sale of a $100,000 home, using the state's typical commission rate of 2.71%. Buyer's agents in Texas will make around $2,900, using the state's typical buyer's commission rate of 2.88%.

Sellers are responsible for paying realtor fees to both the listing agent and the buyer's agent in Texas. Generally, the commission fee will come out of the seller's proceeds at closing — so you don't have to pay anything out of pocket. Learn more about how realtor fees work in Texas.

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