Buyers Broker Commission

The buyers broker commission, or sometimes called the buyers agent commission, is the amount of money you agree to pay the broker (or agent of broker) representing the buyer as an inducement for other brokers 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 95% of the time another broker will sell your home. The typical fee in our Texas market is 2-3%. The commission is not regulated and there is not a set commission rate paid to the buyers broker. With all commissions the amount paid is negotiable and is negotiated at the time 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 buyers broker commission is part of the selling strategy determined between the seller and the listing agent. The buyers broker commission is collected by the title company at closing and paid to the buyers broker and all or part of the amount is paid to the agent working directly for the buyer.