Real Estate Commission Earnings in Texas

Real Estate Agent Earnings in Texas

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Market Overview in Texas

Texas, one of the largest and most economically diverse states in the United States, has a robust real estate market.

The state’s appeal is bolstered by a combination of affordable housing, a strong job market, and a high quality of life.

Key cities like Houston, Austin, and Dallas are at the forefront of real estate activities.


Known for its energy sector, Houston’s real estate market is dynamic, offering a range of residential properties from urban condos to suburban homes.

The market is influenced by the city’s economic health and the global energy market.


As a tech hub, Austin attracts a young and vibrant population. The city has seen a real estate boom, with a significant influx of new residents and businesses.

This growth has led to a competitive housing market, with a focus on sustainable and high-tech homes.


A commercial and cultural hub, Dallas offers a diverse real estate market.

The city’s growth is driven by a strong corporate presence and a steady influx of new residents, leading to a demand for both urban and suburban living options.

Average Commission Rates in Texas

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The commission rates for real estate agents in Texas generally align with the national average, typically ranging between 5% and 6%.

However, these rates can vary based on several factors, including the type of property, its location, and the specifics of the agreement between the agent and their client.

For instance: In urban areas like downtown Houston or Dallas, where the property prices are higher, agents might negotiate slightly lower commission rates due to the higher sale prices.

In contrast, in more rural areas or smaller towns, commission rates might be on the higher end of the spectrum due to lower property values and fewer transactions.

Case Studies: Successful Sales in Texas

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Luxury Home Sale in Austin

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An agent successfully sold a luxury home in Austin for $2 million. Assuming a 6% commission rate, the total commission would be $120,000.

If this commission is split evenly between the listing and buying agents, each would earn $60,000 from the sale.

Suburban Home Sale in Houston

Suburban Home Sale in Houston

In a suburban area of Houston, an agent sold a family home for $500,000. With a 5.5% commission rate, the total commission amounts to $27,500.

Divided between the buying and selling agents, each would receive $13,750.

Condo Sale in Dallas

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A real estate agent closed a deal on a downtown Dallas condo priced at $350,000. At a commission rate of 5%, the total commission is $17,500.

This amount is then split, providing each agent with $8,750.


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These case studies demonstrate the variability in earnings, heavily influenced by the property type, location, and the negotiated commission rate.

Texas’s diverse real estate market offers agents opportunities in both high-end and standard residential sales, with earnings reflecting these market dynamics.