Buyer Agent Commission

The buyer agent commission, is really the buyer’s broker commission, is the amount of money you agree to pay the broker (or agent of broker) representing the buyer as an inducement for agents to show and sell your home. In any Texas real estate transaction, brokers are paid and they pay the agents. Typically it is defined as a percentage of the selling price and it is advertised in the agents information section of the listing in MLS as the amount the agent can expect to be paid. It is paid at closing and any restrictions or additional incentives are listed in the private remarks section of the listing agreement. No matter which broker lists your home over 90% of the time another broker will sell your home. The typical fee in our Texas market is 3%. There is not a set commission rate paid to the buyer’s broker. With all commissions the amount paid is negotiable and is negotiated when you enter a listing agreement. Unlike the selling price of the property, the price is negotiated at the time of receiving an offer. The amount of the buyer’s broker commission is part of the selling strategy determined between the seller and the listing agent. The buyer’s broker (agent) commission is collected by the title company at closing and paid to the buyer’s broker and all or part of the amount is paid to the agent working directly for the buyer.