Texas Brokerage Commission Models in 2026: Splits, Fees, Buyer Agreements, and What Agents Really Earn
Last updated: February 5, 2026
The rules around real estate commissions in Texas changed more in the past 18 months than in the previous two decades. If you’re a broker weighing your firm’s compensation structure, or an agent trying to decide which brokerage model makes sense for your career, you’re navigating a fundamentally different landscape than you were in 2023.
Here’s what actually changed: The August 2024 NAR settlement eliminated blanket buyer-agent compensation offers in MLS listings across the country. Texas layered on its own requirements through updated TREC forms and a 2025 state law requiring written buyer-representation agreements starting January 1, 2026. These changes didn’t dictate commission rates, but they transformed how brokerages structure compensation, how agents get paid, and what buyers and sellers now expect.
This guide breaks down the Texas brokerage commission models that matter in 2026—not theoretical options, but the actual structures brokerages are using right now. You’ll see real pricing, real tradeoffs, and the strategic decisions your competitors are making.
How the 2024–2026 Rule Changes Reshaped Texas Brokerage Commission Models
The Texas brokerage commission models operating today exist because of specific regulatory changes that took effect between August 2024 and January 2026.
The NAR Settlement Changed National Practice (Effective August 17, 2024)
Three national practice changes directly affected Texas brokerage commission models:
MLS listings can no longer include buyer-agent compensation fields. Listing brokers cannot publish what the seller will pay a buyer’s agent inside MLS data. Any offer to compensate the buyer’s agent must now be negotiated outside the MLS or written directly into the purchase contract.
Written buyer-broker agreements are required before property tours. Agents must sign agreements with buyers that specify compensation terms and payment responsibility before showing homes.
Commissions became explicitly unbundled and negotiable. The settlement formalized that listing-side and buyer-side compensation are separate negotiations, not implicitly tied together through MLS cooperative compensation.
Texas Added State-Specific Requirements Through TREC
Texas regulators added their own layer of changes that further shaped how Texas brokerage commission models work:
TREC rewrote contract Paragraph 12A to separate broker fees clearly. The updated Texas real estate contract language created three distinct sections:
- 12A(1)(a): Seller pays brokerage fees the seller agreed to pay (listing side)
- 12A(1)(b): Seller may contribute a specific dollar amount toward buyer-broker fees that the buyer agreed to pay
- 12A(1)(c): Covers other buyer expenses but explicitly excludes buyer-broker fees
Texas codified buyer-representation agreements in state law (effective January 1, 2026). A 2025 bill made written buyer agreements mandatory by law. The TREC buyer representation agreement requirements specify services, termination date, whether representation is exclusive, compensation rate, and a conspicuous statement that broker compensation is negotiable.
Buyer-representation forms now require “objectively ascertainable” compensation. Texas REALTORS® updated Form TXR 1501 to remove vague “TBD” or “bonus” language. Compensation must now be a specific number or calculable percentage.
What This Means in Practice for Texas
Key changes every agent and broker must understand:
✓ Buyers must sign written agreements before touring – No more informal buyer relationships
✓ Sellers no longer pre-commit compensation in MLS – Offers happen in contracts, not listings
✓ Commissions are now two separate negotiations – Listing side and buyer side are independent
✓ Written agreements protect agents legally – Documentation requirements reduce disputes
✓ Transparency increased, prices mostly didn’t collapse – Average rates remain near 5.5–6%
Where Texas Real Estate Commissions Actually Stand in 2026
Despite headlines predicting commission collapse, average total real estate compensation in Texas remained relatively stable. According to research from Clever Real Estate and RealEstateWitch analyzing 2025 data, average listing-side commission in Texas sits around 2.8–2.9%, with combined total commissions averaging 5.6–5.85% of sale price. SOLD.com pegged 2025 average total commissions in Texas at approximately 5.64%.
In other words: commissions didn’t collapse, documentation changed.
Texas saw less disruption than coastal markets like California or New York, largely because buyer-agent agreements were already common practice among top producers in competitive Texas markets like Dallas, Houston, and Austin.
Nationally, data from the first year under new rules showed average commissions didn’t crash and in some cases rose slightly, as sellers continued to pay buyer-agent fees in a sluggish market.
The real shift in Texas brokerage commission models isn’t about dramatic rate cuts. It’s about who legally commits to paying whom, how compensation gets documented through the TREC buyer representation agreement, and what alternative fee structures brokerages use to compete.
How Texas Compares to the Rest of the U.S. in 2026
Texas brokerage commission models evolved differently than other states:
Texas listing commission 2026 rates stayed stable – Average total compensation remained near historical 5.5–6%, while some markets saw more volatility
Texas adopted stricter written buyer rules than many states – The January 2026 state law requirement goes beyond NAR membership rules
Texas uses clearer contract language than most states – TREC Paragraph 12A explicitly separates listing fees from buyer-agent contributions, reducing confusion
Texas has more 100% commission brokerages than many markets – The competitive Texas real estate environment accelerated adoption of alternative brokerage models
The Five Texas Brokerage Commission Models Dominating the 2026 Market
Texas brokerages in 2026 gravitate toward five distinct commission model archetypes. Here’s how they compare:
| Model | Who it’s for | Typical listing fee | Agent split | Fixed fees | Best for |
|---|---|---|---|---|---|
| Traditional full-service | Brand-focused agents | 2.5–3% | 50/50 to 80/20 | Low | New to mid-level agents |
| Discount brokerage | Cost-conscious sellers | 1–1.5% | Varies | Low | Volume agents |
| Flat-fee MLS | DIY sellers | $100–$600 | N/A | N/A | Savvy sellers |
| 100% commission | Top producers | Market rate | 100% | $100–$300/mo | Experienced agents |
| Tech marketplace | Price shoppers | ~1.5% | Varies | N/A | Comparison buyers |
1. Traditional Full-Service Models (With Explicit Negotiability)
Many established Texas brokerages still operate on traditional percentage-based compensation but now emphasize that fees are negotiable under Texas real estate commission rules 2026. Listing fees typically range from 2.5–3% with buyer-agent compensation arranged separately. These firms increasingly offer tiered service menus—standard versus premium marketing packages—to justify higher fees based on service level.
Who these models serve: Full-service models appeal to sellers who value comprehensive representation, professional marketing, and negotiation expertise.
2. Discount Percentage-Based Models (1–2% Listing Fees)
Discount brokerages in Texas promote listing fees of 1–1.5% instead of the state average 2.8%. Firms like those in the Clever Real Estate marketplace pre-negotiate 1.5% listing fees with agents across major brands including RE/MAX, Keller Williams, and Compass. Local discount brokerages such as TexasRealEstateSavings.com advertise 1.5% full-service listing fees.
These Texas brokerage commission models work because they recruit experienced agents willing to accept lower per-transaction revenue in exchange for higher volume or agents who operate on 100% commission plans where they control pricing.
3. Flat-Fee and Hybrid MLS Models
Flat-fee MLS companies across Texas list homes on MLS for one-time fees, often $100–$600+, with optional add-ons for broker support. Some hybrid approaches combine a small flat fee with a percentage at closing (such as $89 upfront plus 0.5% at close).
Platforms like Houzeo highlight potential seller savings of $10,000+ on median-priced Houston homes by avoiding 3% listing commissions. These Texas brokerage commission models shift responsibility for marketing and negotiation partially or fully to sellers in exchange for substantial cost savings.
4. 100% Commission Brokerages (Agent Keeps All Commission, Pays Fixed Fees)
The Texas 100% commission brokerage model represents one of the fastest-growing commission structures. Agents retain 100% of their commission and pay the brokerage through predictable fixed fees.
VIP Realty’s Dallas program offers multiple plans:
- Platinum Plan: Agent keeps 100% of commission; pays $100/month plus $250 per transaction
- Gold Plan: 80/20 split with no office fees or production quotas
Lion Drive Realty operates a statewide Texas 100% commission brokerage: $100/month plus $100 per transaction, with no hidden fees. E&O insurance is included.
Economic advantage: An agent closing two transactions per month at 3% commission on $400,000 average sale price generates $24,000 in gross commission. Under a traditional 70/30 split, they net $16,800. Under a 100% model with $100 monthly + $100 per transaction, they net $23,550—an increase of $6,750 monthly or $81,000 annually.
This is why 100% models are growing fastest in Texas among agents closing 15+ deals per year.
Who these models serve: Self-sufficient agents with established client bases who don’t rely on brokerage-provided leads and experienced producers who prioritize income maximization.
5. Tech-Enabled Marketplace and Referral Platforms
Online platforms like Clever, Houzeo, and SOLD.com operate as intermediaries, negotiating lower fees with local brokers and routing consumer leads to participating agents. These platforms bundle comparison shopping and savings guarantees, leveraging technology to normalize lower pricing across many independent Texas brokerages.
Which Texas Brokerage Commission Model Wins for Different Agents
Choosing the right model depends on your experience level, lead sources, and business structure:
| Agent type | Best model | Why |
|---|---|---|
| Brand-new agent | Traditional split | Training, mentorship, and brokerage-provided leads |
| Mid-level agent | Graduated split | Support system with increasing take-home as production grows |
| Top producer | 100% brokerage | Keeps most money, self-sufficient operations |
| Investor-focused agent | Flat fee / hybrid | Flexible pricing for high-volume transactions |
| Digital-first agent | Tech marketplace | Steady lead flow from platform |
Buyer-Side Commission Structures: Understanding Who Pays Buyer Agent in Texas 2026
Buyer-side compensation represents where Texas brokerage commission models changed most dramatically between 2024 and 2026.
The Three Primary Buyer-Agent Payment Paths
Path 1: Buyer Pays Their Own Agent Directly
The TREC buyer representation agreement specifies a fee that the buyer is obligated to pay from their own funds—either out-of-pocket, financed through lender-approved credits, or negotiated as closing cost coverage.
When used: Investor buyers, high-net-worth clients, and situations where sellers explicitly refuse any buyer-agent compensation contribution.
Path 2: Seller Pays the Buyer’s Agent Directly (Contractual Agreement)
The seller agrees in the purchase contract to pay a specific percentage or dollar amount directly to the buyer’s broker, documented in TREC Paragraph 12A. This remains the most common approach in Texas markets as of early 2026.
Path 3: Seller Contributes Toward Buyer’s Broker Fee (Capped Credit)
Under TREC’s revised contract language, Paragraph 12A(1)(b) allows sellers to contribute an amount “toward brokerage fees that Buyer has agreed to pay,” capped at the lower of the contract amount or the buyer’s actual agreed fee.
Example: Houston $500,000 home purchase
- Buyer fee in representation agreement: 2.5% = $12,500
- Seller contribution agreed in contract: $10,000
- Buyer pays at closing: $2,500
This structure gives sellers cost certainty while demonstrating willingness to support buyer-agent compensation.
New Buyer-Side Pricing Experiments
The mandatory written agreements created space for alternative buyer-side pricing:
- Tiered services: Basic package at 1.5%, premium at 2.5–3%
- Rebates and cash-back: Some Texas brokerage commission models offer 25% rebates or up to 1.5% cash back
- Flat-fee or capped representation: Fixed fees regardless of price, or percentage fees with caps
- Hourly models: $150–$300/hour plus smaller success fee
Agent Compensation: How Texas Brokerage Commission Models Pay Their Agents
Traditional Percentage Splits
Most established Texas brokerages operate on percentage splits where the agent receives a portion of gross commission:
- 50/50 split: Typical for new agents
- 60/40 split: Standard for 1–3 years experience
- 70/30 split: Common for established agents
- 80/20 or 85/15 split: Reserved for top producers
Graduated splits: Many Texas brokerage commission models use production-based progression where split improves as agent hits volume thresholds.
100% Commission with Fixed Fees
Instead of taking a percentage, the brokerage charges predictable fixed fees:
- Monthly membership + per-transaction fee: Most prevalent structure
- Higher monthly, no transaction fees: $300–$500/month with no per-transaction fees
- Annual fee structures: $2,000–$3,000/year with unlimited transactions
How Texas Brokerages Make Money Under Each Commission Model
Understanding brokerage revenue models helps explain pricing and service levels:
Traditional brokerages earn via splits – Revenue comes from the percentage retained from each agent transaction. Higher splits to agents mean brokerages need more volume or must charge additional fees.
Texas 100% commission brokerages earn via fixed fees – Predictable monthly membership fees ($100–$300) and per-transaction fees ($100–$250) replace percentage-based revenue. Profitability depends on agent count and transaction volume.
Flat-fee firms earn via volume – Low per-transaction fees require high transaction counts to cover overhead. Success depends on operational efficiency and technology automation.
Tech marketplaces earn via referral fees – Platforms charge participating brokerages 25–35% referral fees for consumer leads, which gets factored into the discounted pricing agents offer consumers.
Strategic Considerations When Choosing Texas Brokerage Commission Models
For Agents: Total Compensation Analysis
Calculate your true take-home:
Formula: (Average commission × closings × split %) – (monthly fees × 12) – (per-transaction fees × closings) – (self-funded marketing/leads) = net income
Example:
- Traditional 70/30: $12,000 × 20 transactions = $240,000 × 70% = $168,000 net (minimal expenses)
- 100% model: $240,000 – $1,200 monthly – $2,000 transaction fees – $15,000 self-funded = $221,800 net
The 100% model delivers $53,800 more annually in this scenario.
For Agents: Career Stage Alignment
New agents (0–2 years): Traditional splits with training and leads typically provide better outcomes.
Growing agents (2–5 years): Hybrid models or graduated splits let you benefit from support while capturing more income.
Established agents (5+ years): Texas 100% commission brokerage models make sense once you have consistent lead sources.
For Brokerages: Margin vs. Volume Economics
High-margin, lower-volume: Traditional splits require fewer transactions but demand genuine value delivery.
Low-margin, higher-volume: 100% commission or discount models require substantial transaction volume.
The middle squeeze: Moderate splits without exceptional services, or discounted pricing without operational efficiency, creates unsustainable economics.
Seller Decision Checklist: How to Choose Your Texas Brokerage Commission Model
Before selecting an agent or brokerage, ask these questions:
Performance metrics:
- What’s your average days on market compared to MLS average?
- What’s your sale price to list price ratio?
- Can you show me net proceeds after commission on comparable sales?
Service delivery:
- What specific marketing plan will you execute for my property?
- What’s included in your standard service versus premium packages?
Buyer-agent compensation strategy:
- What do you recommend I offer for buyer-agent compensation and why?
- How does buyer-agent compensation affect showing activity in our market?
Cost transparency:
- Are there any additional fees beyond the listing commission?
- What services cost extra?
Frequently Asked Questions About Texas Brokerage Commission Models
Are real estate commissions in Texas actually lower in 2026?
Not dramatically. Average total commission remains around 5.5–6% according to 2025 data from Clever Real Estate and SOLD.com. The biggest changes involve how commissions are disclosed and structured through the TREC buyer representation agreement. More sellers negotiate lower listing fees (1–2%), but market-wide rates haven’t collapsed.
Does a Texas seller still have to pay the buyer’s agent commission?
No law requires sellers to pay buyer-agent commission under Texas real estate commission rules 2026. However, in balanced markets, properties where sellers contribute toward buyer-agent compensation typically receive more showings and offers than those offering zero contribution.
As a buyer in Texas, do I now have to pay my agent out of pocket?
You must sign a TREC buyer representation agreement before showings. Most agreements specify your agent will first seek payment from the seller. If the seller pays less than your agreed rate, you typically owe the difference at closing unless your agreement states otherwise.
Can I negotiate commissions with my Texas real estate agent?
Yes. Texas law and TREC explicitly require disclosure that broker fees are negotiable. You can negotiate listing or buyer-agent percentages, flat fees, rebates, caps, and service levels under current Texas real estate commission rules 2026.
What are my options to save on listing commissions in Texas?
Full-service discount brokers at 1–1.5%, flat-fee MLS services ($100–$600+), hybrid services with small flat fees plus low percentages (0.5–1%), negotiated discounts with traditional agents, or tech marketplace platforms pre-negotiating 1.5% rates.
How do 100% commission brokerages make money?
Through fixed fees: monthly membership ($100–$300) plus per-transaction fees ($100–$250), or higher monthly fees with no transaction charges. Revenue also comes from à la carte services like lead generation and premium tools.
What commission split should I expect as a new Texas agent?
New agents typically start with 50/50 or 60/40 splits at traditional brokerages. These come with training, mentorship, and support. Splits improve to 70/30 or 80/20 as you gain experience.
Will Texas commissions continue falling over the next few years?
Data suggests gradual rather than dramatic erosion. Greater transparency and competition will maintain downward pressure, particularly for higher-priced properties. However, transaction complexity continues to support meaningful compensation for skilled representation.
Should Texas agents join 100% commission brokerages in 2026?
It depends on your production level and lead sources. Calculate true net income under both models. For agents closing 15+ transactions annually with strong referral networks, Texas 100% commission brokerage models often deliver substantially higher net income.
How do I choose between different Texas brokerage commission models as a seller?
Request specific outcome data from each brokerage: their listings’ average days on market, sale price to list price ratio, and net proceeds after commission. Choose based on projected net outcome, not just commission percentage.
Next Steps: Optimizing Your Texas Brokerage Commission Model Strategy
Understanding Texas brokerage commission models is the starting point—implementation determines success. Whether you’re a broker evaluating your firm’s positioning or an agent choosing where to build your career, the commission model you select should align with your strengths, market conditions, and client needs.
For brokerages: Review your current commission structure against the five model archetypes. Evaluate whether your pricing and agent compensation align with your operational capabilities and market positioning.
For agents: Calculate your true net income under different commission structures using actual production data. Talk with agents at brokerages you’re considering to understand real-world experience beyond marketing materials.
For buyers and sellers: Interview multiple agents and brokerages representing different commission models. Request transparent explanations of fees, services included, and expected outcomes. Don’t default to the lowest price—evaluate total value and projected results.
The Texas real estate market continues evolving. Stay informed about regulatory changes, market trends, and emerging Texas brokerage commission models to make decisions that serve your long-term success.
