How to Negotiate Your Commission Split in Texas: What Agents Actually Need to Know

February 2026 | Guides

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You've heard the standard line: "Our split is 70/30, and that's just how it is."

Here's the thing—commission splits in Texas are 100% negotiable. Always have been. Most agents just don't know how to have that conversation, or they're told not to ask.

The short version: Your split is a business negotiation, not a fixed rule. Texas agents leave an average of $8,000-15,000 per year on the table by accepting the first offer. Here's how to change that.

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The Numbers Nobody Talks About

Let's get specific about what's actually at stake.

What Texas Agents Typically Pay

According to data from the Texas Real Estate Research Center and industry surveys, here's the split landscape in 2026:

• Traditional franchise brokerages: 60/40 to 75/25 splits (plus desk fees, transaction fees, E&O, franchise fees)
• Boutique brokerages: 70/30 to 85/15 splits (fewer fees, more variability)
• 100% commission models: Flat monthly fee ($300-$800/month) + transaction fee ($200-$500)

The median Texas home price hit $340,000 in January 2026. On a typical 3% buyer-side commission, that's $10,200 gross.

At a 70/30 split: You keep $7,140 At an 80/20 split: You keep $8,160 At 100% commission: You keep ~$9,700 (after flat fee and transaction fee)

That's a $2,560 difference—on a single transaction.

The Hidden Math

Most agents focus on the split percentage and miss the fee stack. A "better" split can actually cost you more when you add:

• Desk fees: $200-$800/month
• Transaction fees: $250-$795 per closing
• E&O insurance: Often $400-$600/year extra if not included
• Franchise fees: 3-8% off the top at major brands
• Technology fees: $50-$150/month
• Marketing fees: Variable, often required

A 75/25 split with $600/month in desk fees and a 6% franchise fee can net you less than an 80/20 split with minimal fees.

The play: Always calculate your actual take-home, not just the split percentage.

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When to Negotiate (And When You Have Leverage)

Not all negotiating positions are equal. Here's when you have the most leverage:

High-Leverage Situations

1. You're bringing production If you closed $3M+ last year, you have real leverage. Brokerages want producing agents—they're the hardest to recruit and the most profitable.

2. You're joining with a team or group Three agents joining together have more negotiating power than three agents joining separately. Volume matters.

3. The brokerage is new or growing New offices and expanding brokerages are hungry for agents. They're often willing to offer better terms to build momentum.

4. End of quarter/year Brokerage managers have recruiting targets. Timing your move to coincide with their deadlines can work in your favor.

5. You have a competing offer Nothing creates urgency like "I'm also considering XYZ Brokerage." Have a real alternative—don't bluff.

Lower-Leverage Situations

New agents (first 2 years): You're still proving yourself. Focus on training and support value, not split optimization.

Agents with gaps in production: A slow year weakens your position. Rebuild momentum before negotiating.

Agents who've job-hopped frequently: Multiple moves in 3 years looks like instability. Brokers will be less flexible.

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The Actual Conversation: A Framework

Here's a practical script that works without being adversarial.

Step 1: Do Your Homework

Before any negotiation, know: - Your production numbers (last 12 months, last 24 months, trajectory) - What competing brokerages offer - The specific fee structure of the target brokerage - What you actually need (support, technology, leads, flexibility)

Step 2: Lead With Value

Don't start with "I want a better split." Start with what you bring.

"I closed $4.2 million last year, with an average of 45 days on market for my listings. I'm looking for a brokerage where I can grow that to $6 million. Here's what I need to make that happen..."

Step 3: Ask, Don't Demand

"What flexibility do you have on the split structure for agents with my production level?"

This opens dialogue without creating confrontation. Let them make the first counter-offer.

Step 4: Negotiate the Package, Not Just the Split

If they won't budge on split percentage, negotiate: - Waived or reduced desk fees - Lower transaction fees - Better lead allocation - Marketing budget - Reduced franchise fee pass-through - Cap on annual fees

Sometimes $200/month off desk fees is worth more than a 5% split improvement.

Step 5: Get It In Writing

Verbal agreements mean nothing. Any negotiated terms should be documented in your Independent Contractor Agreement before you sign.

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The Texas-Specific Angle

Texas has unique factors that affect commission negotiations:

TREC Disclosure Requirements

Texas Real Estate Commission rules require clear disclosure of all fees. Use this—ask for a complete fee schedule in writing before committing.

No State Income Tax Advantage

Texas agents keep more of every dollar earned compared to agents in California, New York, or other high-tax states. This makes the actual split percentage even more impactful. A 5% difference on $150,000 gross commission is $7,500 in your pocket—with no state income tax bite.

Market Velocity Matters

In hot Texas metros (Austin suburbs, DFW growth corridors, Houston Energy Corridor), transaction volume is high. Agents who can close quickly are valuable—use that in your negotiation.

Independent Contractor Reality

Under Texas law, real estate agents are independent contractors. You're not an employee accepting a salary—you're a business owner negotiating a business relationship. Act like it.

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What This Means for Your Business

Here's where I'll be direct.

Run your numbers for the next 12 months: - Project your likely transaction count and volume - Calculate your gross commission - Apply your current split and fee structure - Compare to two alternative models

Example for an agent doing 15 transactions at $340,000 average:

Model	Gross Commission	Split/Fees	Take-Home
70/30 + $500/mo fees + $400 transaction	$153,000	$45,900 + $6,000 + $6,000	$95,100
80/20 + $300/mo fees + $300 transaction	$153,000	$30,600 + $3,600 + $4,500	$114,300
100% flat fee ($500/mo + $350/transaction)	$153,000	$6,000 + $5,250	$141,750

The difference between the worst and best scenario? $46,650 per year.

That's not a rounding error. That's a real estate investing fund. That's your kid's college account. That's the difference between grinding and building wealth.

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Bottom Line

• Commission splits in Texas are negotiable—always have the conversation
• Calculate total cost, not just split percentage—fees stack up fast
• Leverage matters—time your move when you have negotiating power
• 100% commission models often net more for producing agents ($10M+/year volume)
• Get everything in writing before signing your ICA
• Your take-home is the only number that matters—focus on that

You control your career. The brokerage needs agents who close deals. That's leverage—use it.

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Sources: - Texas Real Estate Research Center, January 2026 Market Statistics - National Association of Realtors, 2025 Member Profile - Texas Real Estate Commission, Broker Responsibility Guidelines

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