How much does a real estate agent make in Texas?

April 20, 2023


Are you considering a career as a real estate agent in Texas? You may be wondering about the potential salary you can earn. Unfortunately, there isn't a straightforward answer to this question, as the salary of a real estate agent depends on various factors such as experience, specialization, and commission rate. Nevertheless, you can take control of these factors to increase your earnings. So, let's dive into the details and explore how much real estate agents make in Texas.

What do real estate agents do?

Real estate agents are licensed professionals who represent buyers and sellers in purchasing and selling real estate properties. They offer comprehensive guidance, negotiate contract terms, find properties that meet clients' expectations, and troubleshoot any potential problems that may arise during the process.

Real Estate Agent vs. Realtor

A real estate agent has obtained a license to help clients buy, sell, or rent properties. On the other hand, a Realtor is a real estate professional who is a member of the National Association of Realtors (NAR). This organization represents the interests of its members and promotes professionalism in the industry.

To become a Realtor, a real estate agent must join their local board of Realtors and abide by NAR's Code of Ethics. This code requires Realtors to uphold high standards of ethical behavior in their professional and personal lives. Some of the principles of the Code of Ethics include treating all parties honestly, avoiding misrepresentation and exaggeration, and protecting the confidential information of clients.

The consequences of violating the Code of Ethics can be severe and include disciplinary action, loss of membership, and potential litigation. Being realtors in Cypress TX signifies a commitment to professionalism, integrity, and the highest ethical standards in the real estate industry.

How do real estate agents in Texas make money?

Houston real estate agent are typically paid through a commission, a percentage of the property's purchase price or rental value. Texas real estate agents receive their commission only after the transaction is completed, regardless of the amount of work they do. The commission is usually 6% of the property's total price, which is split between the brokers and agents of both parties (buyer and seller). As a result, Texas real estate agents earn a portion of the commission, which can vary depending on individual arrangements between the agent, broker, and both parties of the transaction.

What affects the salary?

The salary of a real estate agent in Texas can be influenced by various factors, including:

  • Working hours: Real estate agents who are independent contractors covering their own business expenses don't get paid for days off. Generally, the more effort and hours one works, the higher the likelihood of earning more.
  • Experience: Experienced agents tend to close more sales and win more listings. Additionally, professionals who are recognized in the industry can negotiate higher commissions, and years of experience allow them to overcome potential challenges more easily.
  • Niche or specialization: Holding certifications and designations such as Accredited Buyer's Representative, Seller Representative Specialist, or Certified Residential Specialist opens the door to a higher salary.
  • Education: Appropriate qualifications are essential for a successful real estate agent. Therefore, investing in professional real estate agent Katy TX online courses can be a smart move.
  • Business expenses: Real estate agents typically have to cover various business expenses and fees, including brokerage fees, professional fees, advertising/marketing, operation, and skill development.

How much do real estate agents make in Texas?

According to Indeed, the average base salary of Texas real estate agents in 2023 is $94,363 per year. This means that half of the real estate agents in Texas earn more than this amount, and half earn less.

However, if you have more than 10 years of experience in the industry, you can expect to earn even more - up to $111,622 per year.

Additionally, if you possess critical skills such as market analysis, sales experience, or familiarity with WordPress or Google Ads, you can expect to earn even more than the average base salary. Specifically, you can expect to earn up to 45% more than the average base salary if you possess these skills.

Overall, these numbers suggest that the salary of a real estate agent in Texas can vary widely based on factors such as experience, skills, and specialization.

What are the highest-paying cities in Texas?

If you're interested in the highest-paying cities for real estate agents in Texas, the top five are Austin ($100,746), Plano ($99,585), Houston ($98,740), Dallas ($96,339), and San Antonio ($96,120).

How are real estate agents paid in Texas?

Realtor Sugar Land is not typically paid a fixed salary or hourly rate. Instead, they earn a commission based on the sale of properties. An agent's commission can vary depending on their experience and other factors.

Newer agents may receive a lower percentage of the commission paid to the broker, typically around 50%. Additionally, if the property is sold with the help of a buyer's agent, the commission may need to be split between the listing agent and the buyer's agent.

Real estate agents in Texas are typically paid through a listing agreement that is signed by the seller and the listing agent. The commission paid to the listing broker is then shared with the brokerage that represents the buyer by any previously agreed-upon commission split.

Is it worth being a Texas real estate agent?

Whether becoming a Houston real estate agent depends on individual circumstances and goals, being a real estate agent in Texas can be a lucrative career for those who work hard and build a strong client base. The commission-based compensation structure allows agents to potentially earn a significant income. The demand for real estate agents in Texas is high, as the state has experienced a population boom in recent years.

On the other hand, being a successful real estate agent in Texas requires dedication and hard work. It can take time to build a solid client base and establish a reputation in the industry. Additionally, expenses such as education, association fees, and marketing costs are associated with becoming and maintaining a real estate license.

Whether being a Pearland realtor depends on one's personal and financial goals, work ethic, and willingness to invest time and resources into the profession.


I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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