How real estate commissions actually work
The rules changed in 2024, and a lot of what you will read online is out of date. Here is the straight version for South Austin, Buda, Kyle, and Bastrop: who pays, what is negotiable, and what the fee actually buys you. 175+ closings since 2016, and no jargon.
- ✓ The seller pays their own listing agent, agreed in writing up front
- ✓ The buyer's agent is now paid separately, by negotiation
- ✓ Buyers sign an agreement before touring a home
Who pays realtor fees, and how much?
Real estate commissions are fully negotiable and never set by law. When you sell, you agree on your listing agent's fee in writing before your home hits the market, and it comes out of your proceeds at closing. Since the NAR settlement took effect in August 2024, you are no longer expected to automatically pay the buyer's agent on top of that. You can still choose to offer it as a way to attract buyers, but that is now a separate, negotiated decision. Buyers, for their part, sign a written agreement setting their own agent's fee before they tour a home.
What changed in 2024, in plain English
A group of home sellers sued the National Association of Realtors, arguing the old way commissions were advertised was anti-competitive. The settlement that followed did not set any prices (nobody can), but it did change how compensation is shown and agreed. Here is the before and after.
| Before Aug 2024 | Now (since the settlement) | |
|---|---|---|
| Buyer-agent pay shown on the MLS | Yes, posted on the MLS for buyer agents to see | No. It cannot be advertised on the MLS anymore |
| Who pays the buyer's agent | The seller typically paid both agents | Negotiated. The buyer's written agreement sets it, and the seller may still choose to offer it |
| Signing before you tour | Not required | Buyers sign a written agreement with their agent before touring |
| Is there a set rate | Always negotiable, though it often felt standard | Always negotiable, and the buyer agreement must say fees are not set by law |
These practice changes went into effect August 17, 2024. Source: National Association of Realtors settlement guidance.
I recorded this walkthrough the day the new rules took effect. The fundamentals it covers still hold today, and the details on this page keep the specifics current:
If you are selling: what the fee looks like
When you list with me, we agree on my fee in writing before your home goes live, and it shows up as a clear line on your net sheet, so you know what you walk away with before you commit to anything. My listing fee is 3%. It is negotiable, and I am always open to a conversation about what fits your situation. What that 3% actually covers is the whole job, not just a sign in the yard:
Pricing strategy
A real comparative market analysis and the right list price for your first ten days, priced against your actual competition.
Make-ready plan
What to fix, what to skip, and the prep that moves your number, without spending on updates you would never earn back.
Cleaning covered
I cover the cleaning to get your home show-ready, so it photographs and shows at its best.
Photography and video
Professional photo and video, edited and ready, because most buyers judge your home online before they ever pull up.
Marketing
A clean MLS listing plus off-MLS reach (social, web) to put your home in front of the largest pool of real buyers.
Negotiation
Representing your interests on price and terms, and steering toward the offer that actually closes, not just the biggest number.
Transaction management
Option period, inspection, appraisal, financing, and every Texas disclosure handled and on time, so you are not tracking deadlines.
Open houses, handled
I do not personally run open houses, but when a listing benefits from them, I have agents who host them for me.
On a $500,000 sale, my 3% listing fee is $15,000, shown as one line on your net sheet. That is an illustration, not your number. Whether you also offer something to the buyer's agent, and how much, is a separate choice we make together. If you do, I disclose it to you in writing and get your approval before anything is agreed, and it can never be posted on the MLS.
Want your real net, not an example? Request a free valuation and I will run your actual numbers.
If you are buying: what to expect
The biggest change lands on the buyer's side. Before you tour a home in person or on a live video call, you and your agent sign a written buyer agreement. It has to spell out your agent's compensation clearly (a set percent, a flat fee, or a specific amount, not an open-ended "whatever the seller offers"), it caps what the agent can earn at that agreed amount, and it states plainly that fees are fully negotiable and not set by law. The seller may still offer to cover that compensation, and you can still accept seller concessions toward your closing costs. You do not need a signed agreement just to chat with an agent at an open house.
For buyer representation, my fee is also 3%, set in your written agreement and negotiable. That covers negotiating price, repairs, and the closing details, lining up and scheduling any repairs during the option period, showing and walking properties, explaining every contract, and managing the transaction to the finish line. And when a deal needs something extra to come together, I will work with you to find a way to get it across. New to the process? Start with my Central Texas buyer's guide.
Good news: from what I am seeing across Central Texas builders, most are still paying the buyer's agent's commission. So if you are looking at new construction, that fee usually is not something you have to bring to the table. My new construction guide has the full picture.
Why representation is worth the fee
It is fair to ask what you are paying for. Picture buying your first home. You do not have an inspector, a lender, an appraiser, or a title contact, and you have never run an option period. You get through inspection and suddenly there are eight things to address, or worse, eight things you did not know to address. That is the job: knowing what is a real problem and what is not, roughly what a fix costs, and how to get you into a home that is solid and affordable, or at least one where you know the risks going in. An inspection never uncovers absolutely everything, but a good agent helps you see the picture clearly and negotiate from it. That is fiduciary duty, working in your best interest, and it is exactly why the settlement makes choosing the right agent more important, not less.
Meet Brandon Holley
I have spent years helping buyers and sellers across South Austin, Buda, Kyle, and Bastrop, with 175+ closed deals since 2016 and a FastExpert 2026 Top Agent nod along the way. When the settlement rules changed, I sat in the classes and talked with attorneys so I could explain it to my clients in plain language instead of legal-speak.
My promise on fees is simple: you will always know what you are paying, what it covers, and that it was negotiable, in writing, before you ever committed.
Keep exploring
Thinking about selling? The full playbook is the free Central Texas seller's guide, and when you want your number, request a valuation. Buying? Start with the buyer's guide. Looking at new construction, where the builder usually covers your agent? See the new construction guide. And if your community carries a MUD or PID, the MUD and PID guide breaks down that cost too.
