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If you’re buying a home in Texas, you’ve probably heard some version of this:
“The commission rules changed, so now buyers have to pay their REALTOR®.”
That is not the whole story.
The better answer is:
Not necessarily.
The rules changed how buyer representation and compensation are disclosed, documented, and negotiated. They did not create a rule saying every buyer must automatically bring their agent’s entire compensation to closing out of pocket.
What matters is understanding:
- What you agreed to with your brokerage
- What compensation may be available from other sources
- What we can negotiate in your offer
- What you could personally owe if those contributions do not cover the agreed amount
My goal is simple.
You should understand those numbers before we tour homes and definitely before we write an offer.
No surprises at closing.
What Changed With Buyer Agent Compensation?
There are 2 different sets of changes buyers commonly hear mixed together.
One involves National Association of REALTORS® policies.
The other involves Texas law.
Understanding the difference makes this much easier.
1. Buyer-broker compensation is no longer offered through the MLS
Under NAR policy, offers of compensation to a buyer’s broker cannot be made on an MLS.
That does not mean buyer-broker compensation became illegal.
Compensation can still be communicated and negotiated outside the MLS. Texas REALTORS® confirms broker-to-broker compensation can still exist outside the MLS.
2. A written agreement is required before most residential showings
NAR policy requires MLS participants working with buyers to enter into a written agreement before touring a home.
Texas went further.
Effective January 1, 2026, Texas law generally requires a license holder working with a prospective residential buyer to enter into a written agreement before showing residential property.
If no property will be shown, the agreement must generally be in place before the license holder presents an offer for that buyer.
3. Compensation has to be clearly stated
Written buyer agreements must clearly address compensation.
NAR policy requires the amount or rate to be objectively ascertainable. It cannot simply say something open-ended such as:
“Whatever the seller offers.”
The agreement must also disclose that broker compensation is negotiable and not set by law.
Texas law similarly requires the written agreement to state the amount or rate of compensation and explain how it will be determined.
In practical terms, that means you and I are going to talk about representation and compensation before we start touring homes.
Does Every Buyer Have to Sign a Full Buyer Representation Agreement Just to See a House?
Texas law now generally requires a written agreement before a license holder shows residential property, but that agreement does not always have to be a full representation agreement.
Texas created a limited non-representation showing option.
Under that type of written agreement, the license holder can show the property but cannot advise the buyer, provide opinions, or perform other brokerage services for that buyer.
That is very different from being represented by a buyer’s agent.
If I am representing you as my client, I want you to understand exactly what that relationship means before we begin.
Does the Buyer Have to Pay Their REALTOR® Now?
Not automatically.
Your buyer representation agreement establishes the compensation you and the brokerage have agreed upon.
It does not automatically determine that the entire amount will come directly from your bank account.
Depending on the transaction, buyer-broker compensation may come from:
- A seller contribution negotiated in the sales contract
- Compensation offered by a listing brokerage outside the MLS
- A builder’s broker compensation program
- The buyer
- A combination of permitted sources
The important part is understanding what is available before we structure the offer.
Can a Texas Seller Still Pay Toward the Buyer’s Agent Compensation?
Yes.
This is probably the biggest misconception I hear about the commission changes.
Texas sellers can still agree to contribute toward some or all of a buyer broker’s compensation.
Under the current Texas One to Four Family Residential Contract, that contribution can be negotiated in Paragraph 12B(1).
That is important because buyer-broker compensation is now treated separately from ordinary buyer expenses in the contract.
So when I’m helping you structure an offer, I’m not looking only at:
Purchase price.
I’m looking at:
Purchase Price + Buyer Expenses + Buyer Broker Compensation + Financing + Seller Contributions + Other Terms
The deal has to work as a whole.
Buyer Expenses and Buyer Broker Compensation Are Not the Same Thing
This is an important 2026 Texas contract change.
The current Texas contract separates ordinary buyer expenses from buyer-broker compensation.
Texas REALTORS® explains that Paragraph 12A is for seller contributions toward certain buyer expenses, while Paragraph 12B(1) addresses a seller contribution specifically toward the buyer’s brokerage compensation.
That distinction matters when we are structuring your offer.
Instead of vaguely saying:
“Let’s ask for seller concessions.”
We need to know exactly what we’re requesting and where that request belongs in the transaction.
What If the Seller Doesn’t Want to Contribute?
Then we look at the entire deal and negotiate.
A seller can:
- Accept the request
- Reject the request
- Counter the request
- Adjust another part of the offer
Buyer-broker compensation is one term among several that may affect the economics of the transaction.
If the seller, listing brokerage, builder, or another permitted source does not cover the entire amount you agreed to in your buyer representation agreement, you may remain responsible for the difference.
That is exactly why I don’t want you finding this out after we are already deep into a transaction.
We talk about it first.
Can a Listing Brokerage Still Pay a Buyer’s Brokerage?
Potentially, yes.
Broker-to-broker compensation itself is not illegal.
What changed under NAR policy is that offers of buyer-broker compensation cannot be made through the MLS.
Texas REALTORS® confirms that broker-to-broker compensation can still be arranged and communicated outside the MLS.
That means one of the things I may do before or during offer preparation is determine whether compensation is being offered outside the MLS and how that affects your transaction.
Again:
The MLS no longer displaying compensation does not mean compensation disappeared.
How Is New Construction Different?
New construction is one area where buyers need to be particularly careful.
Many builders have programs that compensate buyer brokers.
However, those policies are not universal.
They can vary by:
- Builder
- Community
- Individual property
- Promotion
- Market
- Time period
Builder registration rules can also vary.
Some builders require the buyer’s agent to register the buyer before or during the buyer’s first visit.
That is why my advice is simple:
Before you walk into a model home, contact me.
Going into a builder community first and registering yourself may affect whether the builder recognizes your REALTOR® or offers broker compensation, depending on that builder’s policy.
Do not assume.
Let me check it first.
👉 Schedule a 15-Minute Consultation Before Visiting a Builder
Also, do not tell the builder’s salesperson your maximum approval amount just because they ask.
The builder’s representative represents the builder.
Your REALTOR® represents your interests.
For a deeper explanation, read:
The Do’s & Don’ts of Visiting a Builder Community Without a REALTOR®
Should You Choose a Home Based on Whether the Seller Pays Your Agent?
Not necessarily.
Buyer-broker compensation is important, but it is only one part of the transaction.
Imagine 2 homes.
Home A
Lower purchase price, but:
- Seller will not contribute toward buyer-broker compensation
- Limited seller assistance
- Higher immediate repair costs
Home B
Slightly higher price, but:
- Seller contributes toward buyer-broker compensation
- Seller contributes toward certain buyer expenses
- Property needs fewer immediate repairs
Which one is the better deal?
You cannot answer that by looking at 1 number.
We need to look at:
Cash to close.
Monthly payment.
Condition.
Financing.
Seller contributions.
Buyer broker compensation.
Long-term ownership costs.
That is why I constantly tell buyers:
We have to understand the home, the numbers, the market, and the deal.
If you want a deeper breakdown of what cash you may need beyond the down payment, read:
The Hidden Costs of Buying a Home in Texas: Expenses Every Buyer Should Know
Why I Want to Discuss Compensation Before We Make an Offer
You should never be surprised by a brokerage compensation obligation at the closing table.
Before we write an offer, you should understand:
✔ What compensation you agreed to
✔ Whether compensation is being offered from another source
✔ What seller contribution we may request
✔ What a builder may offer
✔ What amount, if any, you could still be responsible for
Then we make decisions using actual numbers.
That is the point of transparency.
Why Buyer Representation Still Matters
This is another part of the conversation I think gets lost.
People sometimes reduce a buyer’s agent’s role to:
“Someone who opens the door.”
Opening the door may be the smallest part of what I do.
Buyer representation can include:
- Helping determine the right search strategy
- Reviewing properties
- Evaluating comparable sales
- Helping you understand new construction versus resale
- Reviewing property taxes, HOA dues, MUDs, and PIDs
- Helping coordinate financing conversations
- Preparing and negotiating the offer
- Structuring seller contribution requests
- Coordinating inspections
- Negotiating repairs or credits
- Working through appraisal issues
- Communicating with the lender
- Communicating with title
- Tracking contract deadlines
- Helping manage the transaction through closing
And because I have experience on the investing and lending sides of real estate as well, I’m also looking at your situation from more than 1 angle.
I have worked with:
- Traditional buyers
- Investors
- New construction
- Wholesaling
- Flipping
- Buy and hold
- Creative real estate strategies
- Mortgage lending
That doesn’t mean I replace your lender, attorney, inspector, title company, or other professionals.
It means I understand enough about the different parts of the transaction to know who needs to be involved and when.
What Happens Before We Tour Homes?
We’ll review your buyer representation agreement.
I will explain:
- What services I am providing
- How long the agreement lasts
- Whether the agreement is exclusive
- How compensation works
- What compensation you have agreed to
- How contributions from sellers, listing brokers, or builders may affect your obligation
- What happens if outside compensation does not cover the entire agreed amount
Texas law requires written residential buyer agreements to include certain information, including services, termination, exclusivity status, representation status, and compensation.
If something does not make sense:
Ask me.
I want you to understand what you’re signing.
Does Signing a Buyer Agreement Mean I’m Locked Into Paying Everything Myself?
No.
It means you and your brokerage have agreed upon how the brokerage will be compensated.
Where that compensation ultimately comes from can depend on the transaction.
For example, we may negotiate for the seller to contribute through Paragraph 12B(1). A listing broker may have an off-MLS compensation arrangement. A builder may offer broker compensation.
However, if those sources do not cover the amount you agreed to, you may still have responsibility for the remaining amount under your agreement.
That is why the buyer agreement and the purchase offer have to be looked at together.
Are Commissions Set by Law in Texas?
No.
Broker compensation is negotiable.
Texas law requires written buyer agreements to conspicuously disclose that broker compensation is not set by law and is fully negotiable.
NAR’s written buyer agreement rules contain a similar requirement.
There is no government-mandated standard commission.
Can Financing Affect How We Structure Compensation?
Absolutely.
The way compensation and seller contributions are structured can interact with your financing.
Loan programs may have rules or limitations that affect the transaction.
That is why your REALTOR® and lender need to communicate.
I don’t want us negotiating something in the contract that creates a problem with your loan.
Before writing the offer, we can coordinate with your lender so we understand how the proposed structure affects your financing and cash to close.
If you have not started that process yet, read:
Mortgage Pre-Approval in Texas: What Buyers Need to Know
Do You Have to Pay Your REALTOR® Out of Pocket?
Here is the simplest answer.
Maybe, but not automatically.
Your buyer representation agreement establishes what you have agreed to pay your brokerage.
Then we determine whether some or all of that compensation can be covered through:
- Seller contribution
- Listing-broker compensation
- Builder compensation
- Another permitted source
- Your own funds
- A combination of those sources
Your potential responsibility should be known before the offer is submitted.
Not when you are sitting at the closing table.
My Approach to Buyer Agent Compensation
I don’t want compensation to become this mysterious number nobody talks about until the last minute.
We are going to talk about it.
We’re going to put it in writing.
We’re going to determine what compensation may already be available.
We’re going to decide what we want to negotiate.
Then we will look at the deal as a whole.
Sometimes the seller may cover all of it.
Sometimes a builder may.
Sometimes another brokerage arrangement may contribute.
Sometimes the buyer may have a balance.
Every transaction can be different.
What should not be different is this:
You should know before you commit.
Ready to Start Your Texas Home Search?
Whether you’re buying in Dallas-Fort Worth, Greater Houston, Austin, San Antonio, or another Texas community, we can start by looking at the entire picture.
Your budget.
Your financing.
Your location.
The property.
Your cash to close.
And the deal.
👉 Search Homes for Sale or Lease
📘 Download the Texas Home Buyer’s Guide
📅 Schedule a Free 15-Minute Consultation
Found a house you want to see?
Send it to me before you schedule the showing, especially if it is new construction.
I’ll review the property, help you understand the numbers, and determine what we need to know about the compensation structure before you move forward.
No surprises.
Frequently Asked Questions About Buyer Agent Compensation in Texas
Do buyers have to pay their REALTOR® in Texas?
Not automatically out of pocket. Your buyer representation agreement establishes the brokerage compensation, but that compensation may potentially be funded in whole or in part through seller contributions, an off-MLS listing-broker arrangement, builder compensation, buyer funds, or a combination.
Do I have to sign a buyer agreement before touring a home in Texas?
Generally, yes. Texas law effective January 1, 2026 requires a written agreement before a license holder working with a prospective residential buyer shows residential property. Texas also provides a limited written non-representation option for showing property.
Can a Texas seller still pay toward my buyer agent compensation?
Yes. Under the current Texas One to Four Family Residential Contract, a seller can contribute toward buyer-broker compensation through Paragraph 12B(1).
Are buyer-agent commissions still negotiable?
Yes. Broker compensation is not set by law and is negotiable. Texas written buyer agreements must disclose that fact.
Why can’t I see buyer agent compensation in the MLS?
NAR policy prohibits offers of compensation from being made through an MLS. Compensation may still be communicated and negotiated outside the MLS.
Can seller concessions pay my REALTOR®?
The current Texas contract separates ordinary buyer expenses from buyer-broker compensation. Seller contribution toward buyer-broker compensation is addressed separately in Paragraph 12B(1).
Do new-construction builders pay buyer agents?
Many builders offer buyer-broker compensation, but policies vary by builder, community, home, and promotion. Contact your REALTOR® before visiting so the builder’s registration and compensation policies can be verified.
What happens if nobody else covers my agent’s full compensation?
If outside contributions do not cover the compensation you agreed to in your buyer representation agreement, you may remain responsible for the difference.
Can the listing broker still compensate my broker?
Potentially. Broker-to-broker compensation remains legal, although NAR policy prohibits offers of compensation on the MLS. Such arrangements can still exist outside the MLS.
What should I ask before signing a buyer representation agreement?
Ask about the services included, the duration of the agreement, whether it is exclusive, the agreed compensation, how outside compensation is credited, and what you could owe personally.
About Kory White Real Estate Group
Kory White Real Estate Group helps buyers, sellers, investors, and relocating clients throughout Texas, including Dallas-Fort Worth, Greater Houston, Austin, San Antonio, and surrounding communities.
With more than 20 years of experience across traditional real estate, investing, and mortgage lending, I approach transactions from more than 1 angle.
We help clients understand the home, the numbers, the market, and the deal.
From Sugar Land to Sherman. From Manvel to Mansfield.
Dallas: 469-336-3027
Houston: 281-738-4446
Website: Kory White Real Estate Group
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