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Who Pays Real Estate Agent Commissions for Houston Homebuyers?

November 11, 2021 | By Reef Merhi

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Buying a new home is an exciting time. You are making the most significant investment of your life, and you want to make sure that you get everything right. Many questions can pop up while buying a new home, including one we often hear: who pays for the real estate agent's commission?

One of the best mortgage companies Texas offers can be an essential source of information when learning more about the home buying process. A mortgage company can also help you understand the different types of mortgages—like FHA loans vs. conventional loans—and the down payment requirement for each type. However, before you decide to try and buy a house without a real estate agent (to avoid costly commissions), this article explains how the agent's commission works, how much it is, and who pays the commissions when you buy a new Houston home!

What is a Real Estate Agent's Commission?

Real estate agent commissions are the fees that real estate agents charge for their services. Instead of sending an invoice after buyers or sellers close on a home, they take a percentage of the house's sale price as their commissions. 

Under contract sign on wooden post (R)

This fee is generally included in the purchase contract and should not be confused with other fees that you'll see in closing documents (for example, mortgage broker fees). A real estate agent will charge different commissions depending on the market and geographical location of the home.

In Texas, the standard fee for agents is around six percent. If both the seller and buyer have different agents in the sale, the fee is usually split between the two agents.

Who Pays the Real Estate Agent Commissions When You Buy a New Home?

The good news is that the seller often pays all agent commissions (including your buyer agent's fees) in Texas! However, at times closing contract could stipulate that the buyer must pay the fees for their REALTOR®.

While many agents have a standard or set fee that they should disclose at the start of your home buying relationship, some real estate commissions are negotiable. As the buyer, you may be able to negotiate a lower commission with the seller's agent. Keep in mind, though, that most agents expect to receive some sort of commission for their services. The amount of the commission depends on who you work with: an independent broker, a flat-fee broker, or one of the national real estate franchises. 

Do I Need a Real Estate Agent When I Buy a New Home?

The answer to this question is that yes, you probably do. The process of buying a home is one of the most significant investments that most people will ever make. First-time buyers want to be sure that they get the best deal and don't is any critical steps in the process. 

So, what does a real estate agent actually do? They're a critical part of a successful home buying process!

Help You Confidently Close on a New Home

It's important that buyers feel confident when placing an offer and closing on a home. A qualified real estate agent will provide guidance and advice during the process while keeping your best interests in mind. Texas United Mortgage Group works closely with new buyers and their real estate agents when qualifying for home loans. 

Find the Perfect Home to Match Your Goals

An experienced professional can help you find the perfect home. They know where the best neighborhoods are located and how to find a home that fits within your budget. An excellent real estate agent can also tell you about area schools, shopping, churches, other community attractions, and more. 

Help With Negotiations

When it comes time to negotiate the home price, your real estate agent will be a valuable asset. If you're pre-approved through one of the best mortgage companies Texas offers, your agent helps you negotiate the price to match the loan amount pre-approved by a financial institution.

What About a Flat-Fee Company?

Should buyers consider agents that charge a flat rate commission (vs. a percentage)? Sellers (and ultimately buyers) might benefit from this type of listing agent for money savings, but these agents may only provide limited representation. The right buyer's agent often offers more services and a personalized experience that you might not find with a low-cost flat-fee agent.

Choose the Best Real Estate Agent and Texas United Mortgage Group!

When you're ready to buy a new home, make sure you have someone on your side who knows the ins and outs of this process. A qualified real estate agent can help with everything from negotiating an offer for a house to guiding the buying process.

Couple with real-estate agent visiting house for sale (R) (S)

Along with an excellent buyer's agent, make sure you work with one of the best mortgage companies Texas offers! A Texas United Mortgage loan officer can help you understand FHA loans vs. conventional loans and get pre-approved for the financing that best meets your need. Reach out soon to learn more about how we can help you get into your new home!

To learn more about the true costs of homeownership, download our free guide, "The Definitive Home Buying Cost Worksheet!"


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