I’ve been looking into buying a home around the Houston area and I’m genuinely curious what others think about how buyer’s agents are paid.
From what I can tell, many agents still expect around 3% commission, which — on a $400K house — is $12,000. That feels wild for what often amounts to a few showings, some paperwork, and a handful of calls or texts.
Sure, some agents probably go above and beyond — analyzing comps, negotiating hard, catching issues before inspection, etc. In that case, they’ve earned their cut. But in many situations, the “buyer’s agent” mostly unlocks doors and fills out standard forms.
If that’s the case, I honestly don’t think even 1% makes sense. Especially now that buyers can do most of the searching and research themselves online.
So I’m wondering:
- Have you used a buyer’s agent in Houston recently?
- Did you feel they actually added value worth the commission?
- Did anyone successfully negotiate a lower rate or use a flat-fee/rebate model instead?
Not trying to bash the profession — I just want to understand what’s typical today and how people handle this in practice.
Are 3% buyer commissions outdated in 2025?
byu/Late-Currency-8028 inRealEstate
Posted by Late-Currency-8028
28 Comments
I paid 3% and our agent def didn’t deserve it
I’ve never, in 25 years, paid a buyer’s agent 3%
The sellers pay for it 95% of the time. And when you sell most buying agents will push hard to not show you houses that don’t pay the 3%.
Some might call it a cartel.
While you are underestimating the work it takes a buyer agent to get you to closing I agree, a lot of the paychecks that happen in real estate are just too much. Don’t agree to pay your buyer agent more than your Market will bear. That’s going to take a little bit of shopping around on your part in a little bit of research.
2.5% is more than fair. I’ve not had issue getting that with agents. Many buyers actually find homes to go and see. You can and should negotiate even if seller likely pays. As a seller you are looking at net and the higher the fee the less I net. Seller can and should negotiate buyers fees they will pay.
Agent in Ohio. I’m getting close to the finish line on a 900 K home. Seller is paying a buyers agent commission of one and a half percent. I’m good with it. I think a lot of it has to do with how much the sale price. On a 400 K home I’d be thrilled to get 2%.
Being at the agent is the point of contact we take the brunt of the commission conversation. As a seller, I know you don’t care where the money goes but try to remember the brokerage house takes a big chunk so not all that money is going directly to the agent
Im in Houston, I pay 2% or 1% to buyers broker and I use flat fee listing agents to list my homes. It’s not hard to do their job and save thousands
Really? I paid 2.5^ in northeast in a hcol city. With new real estate laws you can negotiate the fee.
“In many cases…”
How do you know you won’t be the headache client that goes on 50+ showings over 18 months and wants to submit 20 lowball offers because “well let’s just see…”?
No one *thinks* they are that person, until they are. Very few of the transactions I see are as easy and clear cut as you imagine. Just look at this sub. It’s post after post of people paranoid “is the seller trying to f%|> us???” People bringing up potential lawsuits left and right over the most trivial things (and sometimes serious).
But no…real estate is easy. Just find the cheapest agent who will open the door and email you the contract for your next house. Easy peasy.
If thats ‘all’ it takes, just fsbo
many of the “Above and beyond” things you’ve listed to me are table stakes…
That being said, most agents ask for 3% because many buyers still accept that. Your choice is to find someone who will do it for less, or find someone who will convince you why their 0-3% higher than their competitors is worthwhile to you and how they will earn that back.
I’m not a realtor, but I’ve done a lot of deals, some without realtors. I am not anti-realtor by any stretch. The advice I give to people is to interview 3 agents, see what they have done in the neighborhoods YOU are looking at. If you think all agents are the same, you will probably get a crappy agent. The reality is, nearly half of agents haven’t done a deal in the last year, yet the top agents do a deal a week. The top agents can often earn back the 0.5-1% difference over the cheap ones because they really do know the comps inside and out, know the red flags, and know how to negotiate in your interest.
I also think MANY buyers underestimate the work of realtors. They say “open a few doors and fill out a little paperwork” but most deals really are hours of work, and that assumes you find a house relatively quickly. Otherwise, it can be months of effort and also many buyers don’t buy meaning lots of free work.
I do wish the industry would move to a fee for service model – $50 per showing, $100 for an offer, $500 for a closing, etc.
I’m in the process of selling my house, We tried to negotiate buyer’s agent comp down to 2.5% and they said no. I wish I would’ve discounted the price of the home by the .5% and then make the same offer, just to make a point.
I paid 6% and neither agent deserved their 3%. This is an example of blood suckibg leeches doing their thing.
I think it depends on your market, where I’m at, it’s dropped to 1.5-2%
While I certainly agree that a lot of realtor’s are “phoning it in”, good agents do a lot behind the scenes that buyers and sellers never see and are often completely unaware of! One hopes for a smooth deal with no hiccups, but when there are hurdles to be dealt with you’d be happy to have a GOOD realtor in your corner.
2.5% is normal here which my agent deserved. He spent 4 months with me looking at houses and 5-6 lost offers. He pointed out flaws of houses, saved me trips by letting me know a house wasn’t worth visiting due to steep driveways or busy roads or tiny backyards.. etc.
He also negotiated the price down 25k.
I love my house.
Realtors seldom earn their commission is what I’ve learned.
This business model is stupid and needs to go away. Seller agents should actual sell the property. Instead they list it. It’s a fuck ton of money to pay someone to put an ad on the MLS.
Yes. A lot of folks are paying 2, 2.5 or nothing and hoping the buyer covers it.
I’m a lender for a local credit union in Houston and I recently met with a group of realtors. They said that it’s pretty much an understanding between buyer and seller agents that sellers are paying realtor fees almost all the time.
I’m selling my house now.
Ive capped what I will pay their buyers agent at 2%
I used a buyer’s agent once in Sydney because we were there for only two weeks and time was an issue. The agent had a “pocket listing”. It was not being actively marketed. No other agent knew about it. Could not have found it without the agent. The house was our very favorite of the 5 homes we owned over the years.
For our last home We didn’t contractually engage a buyers agent. We told them they can show us homes and if I buy they will get the commission. Turns out we found the home ourselves.
ps: You definitely can negotiate the commission.
I am sure there are a very small handful of agents out there that work for their money but the vast majority of agents are nearly worthless.
I completely agree. All our agent was open doors to houses we sent her. Never did any research or anything other than driving to open a door. She wasnt even available during the week to see homes.
I used the same agent when I bought my first home, and again later when I sold it.
He was worth every penny, and quite literally earned it.
I used a government buying program that made the first sale incredibly hard to close, and he used his connections and got it through.
When I sold the house five years later, he helped advise on the remodel (there was major insurance claim that required a gutting of the house). Everyone advised me to FSBO, but I lived two hours away by that point and didn’t want to deal with it. I debated listing the house FSBO at $250k, and he listed it at $275k, did one open house, we got a so/so offer and a full price offer and closed early. I didn’t have to show up for anything except to sign at my local title office, and I pocketed more than I would have if I had FSBO.
My agent has been in the industry about 20 years and his expertise shows. A good agent is worth *every* penny.
Paid 2.5% in northern CA. Our agents/agency def didn’t deserve all of that and I feel I overpaid
If you’re solicited for business or if you are looking for your own agent then ask them for their fee structure. Good agents are willing to negotiate their fees because they know what service they are providing at each level. 3% sounds high because it sounds like just some arbitrary number (and honestly it is for most agents lol) however if someone were to show you “3% gets this. 2% gets this 1% gets this and this is my refundable at closing retainer at x value of purchase price” it will likely make you feel you are making an informed decision regarding whether you want this person to help you or not.
My agent and the other agent are both 3%. I had three showings in the very first couple that looked at the house put in an offer that was close to asking. At $700,000 that is a hell of a lot of money they get for nit having to do much. They were not there for the showings. I just met with them once and talked to them on the phone a couple times.