Allen Markel, REALTOR® · Texas Premier Realty

Buying

Buyer-agent compensation

Enter what your written buyer agreement says: what you might owe at closing, what a seller could cover, and the lender limits to confirm.

Before you start

  • Buyer-agent compensation is negotiable. It is not set by law or by any association, and there is no standard amount.
  • Since August 2024 you sign a written buyer agreement before touring homes with an agent. That agreement states what your agent is paid, and it governs — enter the figure from yours.
  • A seller may agree to pay some or all of it, or give you a credit toward closing costs. Either is negotiated in your offer.

Today's 30-year average: 7.40% (Freddie Mac survey via FRED, week of Oct 8, 2026). Edit to your lender's quote.

Property tax: 2.25% typical in Harris County. Typical total rate for the 17,580 homes for sale in Harris County (median of their certified 2025 tax bills; most are between 2.13% and 2.51%). Add your ZIP for a closer figure.

Your agent’s compensation, from your written buyer agreement

Starts blank on purpose. There’s no standard amount — use what your agreement says.

Only if the seller agrees to it in the contract. 0 if not.

A concession negotiated in your offer. 0 if none.

Your agent's compensation

Enter the compensation from your written buyer agreement to see what you might owe at closing and what a seller could cover.

Don’t have an agreement yet? Ask your agent to walk you through it — every term in it is negotiable before you sign.

Effect on cash to close

$29,376 estimated

Down payment (5%)
$17,500
Lender & title fees and prepaids (est.)
$11,876
Cash to close before agent compensation
$29,376
Agent compensation you pay
not entered
Estimated cash to close
$29,376

Fees assume about 2% of the loan, plus first-year insurance, escrow reserves and prepaid interest — the same budgetary math as the Cash to close calculator.

Live listings across our six counties.

Lender limits on seller money

Conventional, more than 90% loan-to-value: typically 3% of the price ($10,500 here). Your seller credit is 0.0% of the price.

Typical figures — confirm with your lender. Limits depend on the program, the occupancy and the loan-to-value, and agency guidance on agent compensation changed in 2024. Whether you can pay your agent from the loan or only with your own cash is also a lender question.

We’re not a lender, and this is a budgetary estimate — not a Loan Estimate, a Closing Disclosure or legal advice. Your written buyer agreement governs what your agent is paid, and your purchase contract governs what a seller pays. Compensation is negotiable and is not set by law or by any association. Your lender confirms the seller-contribution limits and how your loan treats agent compensation — we’ll introduce you below.

Talk to a lender

These are the lenders Allen works with. For any lender you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

Numbers raising questions? Walk through them with a person.

Schedule time with Allen

Questions about Buyer Compensation

What it does

  • What does the buyer-agent compensation calculator do?

    It takes the compensation figure from your written buyer agreement and shows what you might owe at closing, what a seller could cover, and how that affects your cash to close. It also shows typical lender limits on seller money for you to confirm. It starts blank on purpose, since there is no standard amount.

  • Can I negotiate what my buyer agent is paid?

    Yes. The page says it is negotiable and is not set by law or by any association, and there is no standard amount. What your agent is paid is stated in your written buyer agreement, and every term is negotiable before you sign. Ask your agent to walk you through it.

The inputs

  • Can I enter a percent or a flat amount?

    Yes. The calculator lets you enter compensation as a percent of the price or as a flat dollar amount, whichever your agreement uses. Use the same form your agreement states, so the result matches what you signed.

  • What do the seller pays and seller credit fields mean?

    The seller pays field is for money the seller agrees to put toward your agent, and the seller credit is a concession toward your closing costs. Each only counts if the seller agrees to it in the contract, so enter zero if not. Both are negotiated in your offer.

Reading the result

  • What does the cash to close result include?

    It combines your down payment, estimated lender and title fees and prepaids, and then shows what you owe toward agent compensation after any seller contribution. The fee assumptions are budgetary, the same as on the Cash to close calculator. Your lender's written estimate will have the real figures.

  • Can a seller pay my agent's compensation?

    A seller may agree to pay some or all of it, or give a credit toward closing costs. Either is negotiated in your offer and written into the purchase contract. The calculator helps you see the effect, but whether it is allowed for your loan is a question for your lender.

Limits

  • What are the lender limits on seller money?

    The page shows typical limits for the loan type you pick, expressed as a share of the price, and compares them with your seller credit. These are typical figures to confirm. Limits depend on the program, the occupancy and the loan-to-value, so ask your lender before you count on a number.

  • Can I pay my agent from the loan?

    The page says whether you can pay your agent from the loan or only with your own cash is a lender question, and that agency guidance changed in 2024. Ask your lender early, because the answer affects how much cash you need at closing.

Next steps

  • What should I do before signing a buyer agreement?

    Read it carefully and ask questions about what is paid, who pays it and when. The page notes every term is negotiable before you sign. Bring any questions to us, and we will walk through how it works, including how seller contributions could fit into an offer.

Before you start

  • Where do I get the compensation number to enter?

    From the written buyer agreement you and your agent sign. Compensation is negotiated and agreed in writing before the work starts, so the calculator does not suggest a number. If you do not have an agreement yet, ask your agent to walk you through every line, and ask what happens if the seller contributes less than the agreement says. Talk to an attorney if you want a legal read of the document.

  • Is this calculator a Loan Estimate or legal advice?

    No. It is a budgetary estimate, not a Loan Estimate, a Closing Disclosure or legal advice. A lender confirms the loan details and the limits on seller contributions, your agreement and purchase contract are documents to review with your agent and, if you want a legal opinion, an attorney, and a title company produces the final closing figures.

Using the tool

  • What is the difference between the seller paying toward my agent and a seller credit?

    A seller contribution toward your agent is applied to what you owe your agent. A seller credit is a concession toward your closing costs. Both are negotiated in your offer, and the calculator has a separate box for each. Both are subject to lender limits, so ask a loan originator what applies to your loan before you write the offer.

  • Why does my cash to close change when I enter compensation?

    Whatever you owe toward your agent after any seller contribution is added to the cash you need at closing. The calculator then shows an estimated total. Your actual cash to close is confirmed by your lender's Loan Estimate and the title company's closing figures. Plan a buffer rather than a tight number.

  • Can I use this calculator if I am paying cash?

    Yes. Choose Cash (no loan) and the calculator drops the loan fees and lender limits, then shows what you might owe at closing. Compensation is still negotiable and agreed in writing, and a seller can still agree to contribute. A title company will produce the exact closing figures.

  • Does this calculator tell me whether my agent's fee is fair?

    No. It does not judge any amount. It shows the effect of the number you enter on your cash at closing. Compensation is negotiable and not set by law or by any association, so compare what each agent does for what they ask, and ask each one to put the terms in writing before work starts.

  • Should I negotiate my agent's compensation before I sign?

    That is your right as a client, and many buyers do not realize it is negotiable. Ask what services are included, what you pay and when, and who pays first. Then compare. We are happy to explain how we handle it. Talk to us before you tour homes, so you understand the terms first.

  • What does this calculator not know about my purchase?

    It does not know your exact lender fees, your loan's treatment of agent compensation, your seller's terms or your agreement's wording. The fee assumptions are budgetary. Use it to see how different amounts and seller contributions move your cash to close, then confirm with your lender's Loan Estimate and your agreement.

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