Real estate commissions in Arizona: What to expect

When selling or buying a house in Arizona, most people hire a real estate agent to represent them in the transaction. But hiring an agent to work on your behalf means paying them a commission when your transaction is finished. Most agents earn somewhere between 2.5 and 3 percent of the home’s sale price, which can add up to a hefty chunk of change — for example, a 3 percent commission on a $350,000 home comes to more than $10,000. And the median home in the pricey Arizona housing market costs much more than that. Here’s what to know about Realtor fees in Arizona, how much buyers and sellers can expect to pay, and what they’ll get for their money.

How much are real estate commissions in Arizona?

Realtor fees in Arizona average a total 5.4 percent, according to data from Clever. That’s slightly higher than the national average rate, which is 5.32 percent. And home prices are high as well: The median home sale price in Arizona as of September 2024 was $441,700, according to Redfin data.

A 5.4 percent total commission on a home of that price would be $23,852 — but that’s for both agents combined. The split between the listing agent (who represents the seller) and the buyer’s agent is not quite perfectly equal: Clever’s data shows that Arizona listing agent commissions average 2.78 percent, while the average for buyer’s agents is 2.62 percent. And of course, home prices can vary widely from one market to another even within the state. Here’s what Realtor commission amounts would look like in a few of Arizona’s major markets, based on the above percentages:

What’s included in a real estate agent’s commission?

Obviously, real estate agents can cost a lot — but they do a lot to earn their commission, whether they are representing the homebuyer or the seller.  

Buyer’s agents work with the buyer to find the right home for their needs. This typically includes researching neighborhoods you’re interested in and scoping out available properties there within your homebuying budget (or recommending nearby areas where you might be able to afford what you want more easily). They also arrange in-person tours, help set up home inspections and coordinate with the seller’s agent. When you’re ready to make an offer, they will craft a compelling offer and negotiate the price and contract terms on your behalf. Then they guide you through the closing process.

Seller’s agents, on the other hand, work with homeowners to prep their home for sale, price it correctly, list it and market it to as many prospective buyers as possible. This usually includes plenty of market research and open-house hosting. They also represent you in negotiations and navigate the closing process with you, including any necessary paperwork and disclosures. Their ultimate goal is to sell your house to a qualified buyer for the best price possible. 

Who pays agent commissions in Arizona?

For decades, commissions for both agents involved in a real estate transaction were paid by the seller. (This was the case in all states, including Arizona.) The cost of the buyer’s agent’s fee was often built into the home’s asking price, so that even though the buyer didn’t pay their agent directly, they still were paying that fee indirectly.

However, new commission rules went into effect in August 2024 as a result of a federal lawsuit settlement. Under the new system, depending on how the purchase agreement is negotiated, the buyer may now be responsible for paying their own agent’s fee. Some sellers may still opt to pay both fees, though, in the interest of making their listing more appealing to buyers. Be sure your contract spells out commission-payment details very clearly.

Are Arizona real estate agents worth it?

The state of Arizona doesn’t require either buyers or sellers to hire a real estate agent. However, there are definite advantages to working with one. Agents are licensed professionals who know their markets very well. They provide knowledge, expertise and guidance that you’d miss out on otherwise. They also have access to an array of other industry professionals who can help you along the way, like real estate attorneys, home inspectors and more. 

That said, it’s important to work with an agent you trust. If you get stuck with someone who’s a bad fit, you may feel like you are wasting your money. But overall, the benefit of working with an agent is usually worth the cost. 

Saving on fees

Wary of spending so much on an agent? Look into these money-saving options:

• Negotiate with your agent: Many real estate agents are willing to negotiate their commission rate. Even a small reduction of 0.25 percent can result in significant savings, especially on a higher-priced home. 
• Use a discount agent: Agents with discount brokerages like Redfin and Clever charge a reduced commission rate that can be as low as 1 or 1.5 percent. In addition, some agents will work for a preset flat fee no matter how much the home costs, rather than taking a percentage of the sale price. 
• Sell the house yourself: With a for sale by owner listing, you take on much more responsibility in the selling process — but you don’t have to pay a commission to a listing agent.
• Sell directly to a cash homebuyer: Homebuying companies in Arizona can close sales very quickly, often in as-is condition with no repairs needed. And since you’re selling to them directly, you eliminate the middle-man of a real estate agent. However, this route typically means accepting a lower price than you could get with a traditional sale. 

Find an Arizona real estate agent

Finding the right real estate agent is an important step in buying or selling an Arizona home. You’ll want to find an agent who knows your particular area well. And take your time in choosing: Ask for referrals from friends and family, look through online reviews and take note of names on yard signs in the areas you’re interested in. It’s smart to interview several agents and ask plenty of questions before settling on one — the more you click, the better you’ll work together.