From the Blog
The Buyer Representation Agreement in Texas: What to Sign Before Your First Tour
Since January 1, 2026, a Texas law that amended the state's real estate license act requires a written buyer representation agreement before an agent shows you a home, and that agreement must state a specific, objective compensation amount: a percentage, a flat fee, an hourly rate, or zero. It cannot simply say whatever the seller is offering. Redfin's data puts the average U.S. buyer agent commission at 2.43% in Q2 2025, essentially flat with pre-settlement levels, and Texas agents commonly request 2.5% to 3%. Here is what the agreement covers, what that number should be, and how to sign it with your eyes open.
Since January 1, 2026, a Texas law that amended the state's real estate license act requires a written buyer representation agreement before an agent shows you a home, and that agreement must state a specific, objective compensation amount: a percentage, a flat fee, an hourly rate, or zero. It cannot simply say whatever the seller is offering. Redfin's data puts the average U.S. buyer agent commission at 2.43% in Q2 2025, essentially flat with pre-settlement levels, and Texas agents commonly request 2.5% to 3%. Here is what the agreement covers, what that number should be, and how to sign it with your eyes open.
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The rule that changed your first tour
The change comes from SB 1968, which took effect January 1, 2026 and amended the Texas Real Estate License Act. Before an agent can tour a property with you, you must sign a written buyer representation agreement, and it can be exclusive or non-exclusive. The agreement must state a specific compensation amount, and that amount is the maximum the agent may receive from any source, whether you pay it, the seller pays it, or it comes from somewhere else. An open-ended agreement is no longer legal.
What 2.43% actually means
Redfin measured the average U.S. buyer agent commission at 2.43% in Q2 2025, up slightly from 2.38% and back near pre-settlement levels. In Texas, buyer agents often request 2.5% to 3%. On a $300,000 home, 2.5% is $7,500 and 3% is $9,000, so the difference between those numbers is real money. But the figure is negotiated, not set, and the services it buys, tours, comparables, offer strategy, negotiation, and closing coordination, should be spelled out in the agreement too.
Commission amounts are negotiated between you and your agent; there is no set rate in Texas.
Who pays, and the seller's side
Offers of buyer agent compensation can no longer be advertised on the MLS, so payment is now negotiated off-MLS, and a seller can still voluntarily agree to pay some or all of the buyer's agent's fee. The Texas contract includes a line for that concession. When a seller pays, the compensation amount in your agreement is the cap on what your agent can receive in total, no matter where the money comes from.
- Read the term: how long the agreement runs and whether it covers one neighborhood, a city, or all of Texas.
- Confirm the compensation amount is specific, a percent, a flat fee, an hourly rate, or zero, and that it fits your budget.
- Ask what happens if the seller offers a concession, and how the numbers reconcile at closing.
How to compare agents honestly
Because the amount is negotiable, the real question is what it buys. Compare the service, not just the percentage. Ask how long the agreement runs, whether it is exclusive, what happens if you find a home on your own, and how the agent handles sellers who offer concessions. A written agreement protects you too: it locks in the service you were promised in writing.
Written by Phyllis Domingo
REALTOR® · TX License 745926 · 100+ homes sold · Helping families move well in San Antonio and the Hill Country since long before the hard part became normal.
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