Texas is famous for its vast landscapes, booming economy, and rapidly growing housing market. For real estate agents, this means opportunity—but not without challenges. While the Texas housing market offers lucrative earnings potential, real estate agent salaries vary widely across the state based on experience, location, and other key factors.
Whether you’re planning to transition into a real estate career or already working to establish yourself as an agent, understanding the financial dynamics of this industry is essential. This guide breaks down everything you need to know about the average real estate agent salary in Texas and provides actionable strategies to maximize your income potential.
Key Takeaways
- Texas Real Estate Agent Salaries Vary Widely: Salaries range from around $80,000 to over $180,000 annually, depending on factors like location, experience, and transaction volume—since most agents work on commission.
- Key Factors That Influence Income: Experience level, city or region within Texas, market conditions, and whether an agent works full-time or part-time significantly affect earnings potential.
- Strategies to Maximize Earnings: Agents can boost their income by specializing in high-value niches (like luxury or commercial real estate), leveraging technology, earning professional certifications, and building a strong referral network.
- Challenges Include Income Fluctuations and Upfront Costs: Real estate careers involve financial unpredictability and initial investments in licensing and marketing. Success requires ongoing effort, time management, and strategic planning.
Average Salary of Real Estate Agents in Texas
How much can you earn as a real estate agent in Texas? The numbers vary depending on the source, but here’s what recent data shows:
- Indeed reports that the average real estate agent salary in Texas is approximately $87,699 per year.
- ZipRecruiter lists a similar figure, with an average of $79,926 annually.
- Salary.com places the real estate agent salary in Texas at a median of $98,223
- Glassdoor estimates the annual average to be $187,000.
Why the discrepancy in reported salaries?
What factors affect a real estate agent’s income in Texas?
Real estate salaries vary because most agents work entirely on commissions. Commissions depend on multiple factors, including location, the agent’s experience, and transaction volume. Additionally, income outcomes are dependent on market conditions.
Factors Influencing Real Estate Agent Earnings
How can you earn six figures as a real estate agent? Here are some factors that influence the earnings of a real estate professional.
Experience
Your years in the industry play a major role in your earning potential. New agents often start closer to the lower end of the salary range due to a smaller client base. However, your income can grow significantly as you gain experience, build a reputation, and develop a network.
According to the 2025 Salary Guide published by Colibri Real Estate School, alumni agents with 1 to 3 years of experience earned $128,750. However, that income doubled for those with 4 to 10 years of experience.
Location within Texas
Earnings also vary widely based on where you’re working within the state. Some top-paying cities for real estate agents in Texas include:
Dallas:
- Average home value: $318,689 (Zillow)
- Average income of real estate agents: $86,0082 (Indeed)
- Known for its competitive housing market, agents here see some of the highest earnings.
Austin:
- Average home value: $536,565 (Zillow)
- Average income of real estate agents: $96,093 (Indeed)
- Austin’s booming tech industry offers lucrative opportunities, especially in the luxury property market.
Houston:
- Average home value: $270,647 (Zillow)
- Average income of real estate agents: $88,233 (Indeed)
- The diversity of the Houston market—from urban properties to sprawling suburban homes—provides varied income opportunities.
Market conditions
The health of the Texas housing market significantly impacts agent earnings. Agents benefit from increased transaction volume and higher commissions during hot markets characterized by strong demand and rising home prices. Conversely, slow market periods can lead to smaller paychecks.
Full-time vs. part-time commitment
The distinction between full-time vs. part-time real estate agents is crucial. Full-time agents typically close more deals annually, leading to higher overall earnings. Be aware that part-time agents often face challenges in building a sufficient client base.
Understanding Commission Structures in Texas
How do real estate commissions work in Texas? Here’s what you need to know about commission rates and splits.
Typical commission rates
Real estate agents in Texas primarily earn through commissions. The real estate commission is generally 6% of a property’s sale price, as reported by FastExpert. This is typically divided between the buyer’s agent and the listing agent, each receiving 3%.
Commission splits
It’s important to note that the commission split doesn’t go entirely to the agent. Agents generally share their earnings with their real estate broker, often in an 80/20 or 70/30 split. For example:
- The average property value in Austin, TX, is $536,535, according to Zillow. This means that on an average sale, a 3% commission would equate to $16,096 for each agent.
- If your broker arrangement is a 70/30 split, you’d keep $11,267, while $4,733 goes to your broker.
Impact of property values on commissions
The median home price in Texas directly influences agent income. Higher-priced homes in regions like Austin or Dallas provide larger commissions per sale than properties in more affordable markets.
Strategies to Maximize Earnings as a Real Estate Agent
How can you earn more as a real estate agent in the Lone Star State? Here are some general strategies to consider for those getting started.
Specialize in a lucrative niche.
Focusing on high-value sectors such as luxury properties or commercial real estate can significantly boost your earnings. These niches often involve higher commissions and cater to clients willing to invest more in their transactions.
Build a strong network.
Repeat clients and referrals are the lifeblood of any successful agent. Nurture relationships and ensure top-notch service to encourage satisfied clients to recommend you to others.
Complete high value certifications.
Invest in professional growth by pursuing specialized certifications, such as those from the Institute of Luxury Home Marketing or the Real Estate Negotiation Institute (RENI). Additional expertise not only sharpens your skills but also attracts higher-paying clients.
Leverage technology to improve marketing efficiency.
Utilize tools like social media, real estate websites, and CRM platforms to expand your reach. Marketing your services effectively helps you stand out in a crowded industry and capture more leads in the competitive Texas housing market.
Challenges and Considerations in Real Estate Careers
It’s important to note that consistent hard work is required to succeed in the real estate industry. Here are some of the challenges you may encounter as an agent.
Income variability
It’s crucial to understand the commission-based nature of real estate, as it directly impacts your financial stability. Unlike a fixed salary, your income can fluctuate significantly from month to month or year to year, depending on market conditions, the number of deals closed, and other factors. This makes financial planning a critical skill for anyone entering the industry.
To navigate these challenges, it’s a good idea to talk with experienced agents. They can share insights into how they manage their finances, budget during slower periods, and build a steady pipeline of leads to maintain more consistent earnings.
Initial costs
Starting your real estate career comes with upfront expenses, such as real estate licensing requirements in Texas, marketing budgets, and membership dues for professional organizations like the National Association of Realtors (NAR). These costs can include pre-licensing courses, exam fees, background checks, and continuing education to maintain your license. Additionally, you’ll need to invest in marketing materials, such as business cards, a professional website, and online advertising to build your client base.
However, it’s worth noting that becoming a real estate agent in Texas is relatively affordable compared to other career training programs. It not only provides you with the flexibility to be your own boss but also offers the potential for a lucrative income, especially in a thriving market like Texas. With the proper preparation and commitment, these initial investments can pave the way for a fulfilling and financially rewarding career in real estate.
Work-life balance
Real estate isn’t a 9-to-5 job—it’s a career that often demands round-the-clock dedication. The role requires constant availability to manage client expectations, especially during busy market periods. Balancing these demands while carving out personal time can be a significant challenge, making time management and clear communication essential skills for success in this field.
Your Path to Real Estate Success in Texas
The earning potential for real estate agents in Texas is undeniably attractive, but achieving success requires dedication, strategy, and adaptability. While factors like location, market conditions, and experience influence outcomes, you can proactively enhance your income by specializing in high-value niches, building a strong network, and continuously honing your skills.
If you’re ready to launch or advance your career, consider taking the first step today by completing your Texas real estate license courses with Colibri Real Estate School. Colibri offers comprehensive online courses tailored to aspiring agents like you, with a Pass or Don’t Pay Guarantee! Start your real estate journey today and unlock your full potential.
