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Average Real Estate Commission Arizona | Redy

Aug 10, 2023 9:00:00 PM / by Erin Brown

Average Real Estate Commission Arizona

Understanding real estate commission rates is paramount in navigating the complexities of property transactions in Arizona. Commissions are vital for home sellers and buyers, impacting their financial outcomes. This comprehensive guide will explore the calculation and division of real estate commissions, analyze average commission rates across Arizona, and discuss the factors influencing these rates. Additionally, we will delve into commission agreement negotiations and explore the services real estate agents offer. With this knowledge, buyers and sellers can confidently make informed decisions to achieve successful property transactions.

What is a Real Estate Commission?

Real estate commission is a fee paid to real estate agents for their professional services in facilitating property sales. This commission serves as their primary source of income, motivating agents to work diligently in securing the best deals for their clients. In Arizona, as in many states, the commission is usually calculated as a percentage of the property's final sale price. However, commission structures may vary depending on the specific terms agreed upon by the agent and their client.

Average Real Estate Commission in Arizona

Real estate commissions in Arizona typically hover around 5% to 6% of the property's final sale amount. This fee is traditionally divided between the seller's agent, also known as the listing agent, and the buyer's agent. However, as with any dynamic market, these figures can vary based on a range of influential factors. 

  • Average Listing Commission: 2.8%

  • Average Buyer's Agent Commission: 2.6%

Let's use an average of 5.25% for the whole state. Here's a simple guide to show you how much you could pay in real estate commissions when selling a home in six major Arizona cities:


  • Home Price: $300,000

  • Commission at 5.25%: $15,750


  • Home Price: $250,000

  • Commission at 5.25%: $13,125


  • Home Price: $350,000

  • Commission at 5.25%: $18,375


  • Home Price: $400,000

  • Commission at 5.25%: $21,000


  • Home Price: $500,000

  • Commission at 5.25%: $26,250


  • Home Price: $450,000

  • Commission at 5.25%: $23,625

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Factors Influencing Commission Rates

Several factors determine the commission rates charged by real estate agents in Arizona. These factors include the property's value, current market conditions, and the type of property being sold. The experience and expertise of the real estate agent, as well as brokerage policies, can also impact commission negotiations. Understanding these factors empowers buyers and sellers to navigate commission discussions effectively and arrive at mutually beneficial rates.

Calculating Real Estate Commission in Arizona

Calculating real estate commission involves applying the agreed-upon commission percentage to the property's final sale price. For instance, if the agreed-upon commission rate is 5% and the property sells for $300,000, the commission payable to the agent would be $15,000. Remember, however, that commission rates are negotiable, and both parties can work together to reach a fair and reasonable agreement.

Who Pays Real Estate Commission Fees?

The seller is usually responsible for paying real estate commission fees. The seller's agent and the buyer's agent typically divide the commission, with each receiving a percentage of the total. The listing agreement between the seller and their agent outlines the specifics of this division. Agent services are generally provided at no cost to buyers, as the seller pays the buyer's agent's commission.

Tips for Negotiating Commission Rates in Arizona

Whether your property is a downtown Phoenix condo, a Spanish colonial dwelling in Tucson, or a Tempe rental, negotiating realtor fees always awaits in a real estate transaction.

Negotiating a more favorable realtor percentage in Arizona relies on two key factors: your unique circumstances and the prevailing housing market.

You are more likely to negotiate low rates if:

  • Your property has a high value

  • You have a personal relationship with a seasoned realtor

  • You can offer the real estate agent more business after selling the property

What's Included in a Real Estate Agent's Commission?

A real estate agent's commission covers a range of services that go beyond merely facilitating a transaction. These services include expert market analysis, pricing guidance, property marketing, offer management, and negotiations with potential buyers or sellers. A full-service real estate agent in Arizona is vital in maximizing property value and streamlining the transaction process for their clients.

What if My Arizona House Doesn't Sell?

If your house remains on the market beyond the period outlined in your listing agreement, you are not obligated to pay your real estate agent. This setup provides some protection for sellers, as they won't incur any commission costs if the property doesn't sell during the agreed-upon period.

Understanding the Protection Clause

However, sellers should also be aware of the potential presence of a protection clause in their listing agreement. This clause, also known as a "brokerage protection clause," "safety clause," "extension clause," or "tail provision," is a common inclusion in some listing agreements. The protection clause states that if a buyer who was introduced to the property by the listing agent ends up purchasing the property after the listing agreement expires, the seller is still required to pay the agent a commission.

This clause protects the agent's efforts in introducing potential buyers to the property during the listing period. If any of these buyers decide to purchase the property after the agreement expires, the seller will still need to compensate the agent for their role in facilitating the connection.

If your house doesn't sell within the agreed-upon timeframe, you can reevaluate your options. Consider the feedback received from potential buyers and the local real estate market conditions. If you believe your property was not marketed effectively or priced appropriately, you may decide to relist it with a different agent or make some adjustments based on market feedback.

Bottom Line

Real estate commission rates in Arizona are critical for both buyers and sellers. Understanding commission structures, negotiating rates, and recognizing the value of an experienced real estate agent's value can significantly impact your property transaction's success. As you embark on your real estate journey, we encourage you to seek out high-value agents who can provide expert guidance and support through every step of the process.

At Redy, we understand the significance of real estate commission rates in Arizona. Our platform connects sellers with top-tier real estate agents with competitive commission rates, empowering you to make well-informed decisions and achieve optimal results. Let us help you navigate the world of real estate with confidence and ease. Get started with Redy today! 

To learn more about selling your home, visit our Home Seller Resources >

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