Texas Has the Highest Buyer-Agent Commissions in the Country. Do You Have to Pay Them?

Texas is a big state with big real estate numbers. In 2024, the average home sale price in the Dallas–Fort Worth metro was around $420,000. In Austin, closer to $480,000. Houston, roughly $350,000. San Antonio, about $310,000.

And in every one of those markets, buyer-agent commissions consistently rank among the highest in the nation.

According to industry data, the average total commission in Texas has hovered between 5.5% and 6% for years—well above the national average. On a $420,000 home in DFW, that means the buyer's agent's share alone (typically 2.5–3%) is somewhere between $10,500 and $12,600.

And until recently, most Texas buyers didn't even know they were paying it.

How Texas Commissions Work

The mechanics in Texas are the same as the rest of the country, but the numbers hit harder because Texas home prices have climbed steadily while commission rates haven't budged.

When a seller lists their home, they agree to a total commission in the listing agreement. That commission gets split between the listing broker and the buyer's broker. The full amount comes out of the seller's proceeds at closing—but it's baked into the listing price, which means the buyer is financing it.

On a $420,000 DFW home with a 3% buyer-agent commission, that's $12,600. Finance it over 30 years at 7%, and you're paying approximately $30,170 in total for that commission. On a $480,000 Austin home, it's $14,400 at 3%—roughly $34,480 over the life of the loan.

Texans pride themselves on being smart with money. So it's worth asking: what exactly does that $12,000–15,000 buy?

What the NAR Settlement Changed in Texas

The 2024 National Association of Realtors settlement reshaped how commissions work nationwide, and Texas was no exception. The key changes that affect Texas buyers are straightforward.

Buyer-agent commissions can no longer be published on the MLS. Sellers can still offer compensation to a buyer's agent, but it's not assumed and it's not advertised as part of the listing the way it used to be.

Buyers must sign a written agreement with their agent before that agent can show them a property. That agreement has to spell out the agent's compensation—how much and who pays.

For Texas buyers, this means the commission is no longer invisible. You have to confront it before you even start looking at houses. And once you confront it, the math is hard to ignore.

Do You Have to Pay a Buyer-Agent Commission in Texas?

No. You do not.

Texas law does not require buyers to have representation. You have the legal right to represent yourself in any real estate transaction. The Texas Occupations Code (§1101) governs real estate licensing in the state, and it includes broad exemptions for individuals acting on their own behalf. You are not practicing real estate without a license by buying your own home.

You don't need an agent to view properties. You don't need an agent to make an offer. You don't need an agent to negotiate, to attend an inspection, or to close. The listing agent is obligated to present your offer regardless of whether you have representation. Title companies handle the closing. And the Texas Real Estate Commission (TREC) publishes standardized contract forms that anyone can use.

That last part is worth underscoring. The primary contract used in Texas residential transactions—the TREC One to Four Family Residential Contract (Resale), commonly called the TREC 1-4—is a standardized fill-in-the-blank form. It was designed so that licensed agents, who are not attorneys, could complete it. The form is publicly available on the TREC website. You can download it right now, read every word, and fill it in yourself.

Why Texas Is One of the Easiest States to Buy Without an Agent

Not every state makes self-representation equally simple. Some states require attorneys at closing. Some have complicated disclosure regimes or non-standard contract practices. Texas is not one of those states.

Here's what makes Texas particularly buyer-friendly for self-representation.

Title company closings. In Texas, title companies handle the closing process. You don't need a real estate attorney to close (though you can certainly hire one if you want). The title company prepares the closing documents, facilitates the signing, handles the escrow, and records the deed. They're a neutral third party that manages the mechanics for both sides.

Standardized TREC forms. Almost every form you'll need is published by the Texas Real Estate Commission. The purchase contract (TREC 1-4), the amendment forms, the inspection addendum—they're all standardized, publicly available, and written to be completed by non-attorneys. This removes one of the biggest barriers to self-representation: the fear of getting the paperwork wrong.

The option period. Texas has a unique feature called the option period. For a small fee (typically $100 to $500, negotiated in the contract), the buyer gets an unrestricted right to terminate the contract during a set number of days—usually 7 to 10. During this window, you can cancel for any reason. Get a bad inspection report? Cancel. Change your mind? Cancel. Decide the neighborhood isn't right? Cancel. You lose the option fee, but you keep your earnest money. It's one of the strongest buyer protections in any state.

No attorney requirement. Texas does not require an attorney to review or close a real estate transaction. If you want one, you can hire one—and for $500 to $1,500, a Texas real estate attorney will review your contract, answer your questions, and give you actual legal protection. But it's your choice, not a requirement.

The Commission Math in Texas

Let's put some real Texas numbers on this.

You're buying a $400,000 home in the Houston suburbs. The seller was budgeting 3% for a buyer-agent commission—that's $12,000. You show up without an agent. That $12,000 is no longer owed to anyone.

You can negotiate a lower purchase price, knowing the seller's net is still better than it would be with a full-commission offer. You can ask for seller concessions toward closing costs. You can request a rate buydown. The money is on the table—how you use it is your call.

Even if you negotiate just $5,000 off the asking price (well below the full commission savings), that $5,000 reduction on a 30-year mortgage at 7% saves you approximately $11,975 in total payments. Add in the commission that wasn't financed into your loan, and the total impact on your financial position is significant—potentially $20,000 to $30,000 over the life of the mortgage.

In a state where "don't mess with Texas" is practically a fiscal policy, that's money worth paying attention to.

Who Should Consider This in Texas

Self-represented buying in Texas works best for people who are comfortable doing some research, willing to stay organized, and not afraid to read a contract (which, again, is a fill-in-the-blank form published by the state).

If you've bought a home before—especially in Texas—you already know the process. The second time around, paying a five-figure commission for someone to schedule your showings and fill in TREC forms feels very different.

If you're a first-time buyer who's detail-oriented and willing to learn the steps, Texas's buyer-friendly regulatory environment makes it one of the most accessible states to go without an agent. The standardized forms, the option period, and the title company process all work in your favor.

And if you're an investor buying multiple properties in Texas, the commission savings compound. Five properties at $12,000 each is $60,000 in commissions that could be working as equity instead.

Next up: If you're a Texas buyer ready to understand exactly how the process works—from the TREC 1-4 form to the title company closing—our next guide walks through every step: How to Buy a Home Without an Agent in Texas: TREC Forms, Disclosures, and Process.