{"id":35783,"date":"2024-07-18T04:00:38","date_gmt":"2024-07-18T11:00:38","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=35783"},"modified":"2025-07-28T10:00:56","modified_gmt":"2025-07-28T17:00:56","slug":"average-real-estate-commission-rate-arizona","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/average-real-estate-commission-rate-arizona\/","title":{"rendered":"What\u2019s the Average Arizona Real Estate Commission Rate?"},"content":{"rendered":"

Editor\u2019s note: On March 15, 2024, the National Association of Realtors (NAR) announced<\/a> a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will \u201cdecouple\u201d seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more<\/a>.<\/em><\/p>\n

Most real estate agents in Arizona get paid through commissions. Commissions are typically calculated as a percentage of a property\u2019s sale price, though some brokerages will charge a flat fee. The average agent commission<\/a> rate nationwide is 5.8% of the home sale price, according to HomeLight\u2019s real estate transaction data of thousands of home sales each year. But how does that compare to the average real estate commission rate in Arizona?<\/p>\n

In this post, we\u2019ll help you determine how much commission you might pay on your Arizona home sale, and what options are available to earn the highest proceeds possible.<\/p>\n

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HomeLight can connect you with a top-performing, trusted agent in your Arizona market. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.<\/p>\n \n

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What\u2019s the average real estate commission in Arizona?<\/h2>\n

According to top-performing agent James Rusch-Michener<\/a>, you can expect to pay between 5%\u20135.5% in agent commissions when selling a home in Arizona, with some variation based on location within the state. On a property worth the current statewide median home sale price of around $352,536<\/a>, that amounts to $17,627\u2013$19,389 in commission costs.<\/p>\n

Michener, who works with over 67% more single-family homes than the average agent in his Prescott market, says the commission generally varies between the northern and southern parts of Arizona, with Black Canyon City<\/a> \u2014 approximately 22 miles north of Phoenix \u2014 being the dividing point.<\/p>\n

\u201cFrom Black Canyon City south, is probably, like, five percent, and northern Arizona from Black Canyon City north, is about five and a half percent, is what I would say.\u201d<\/p>\n

He explains that, in general, in the northern area of Verde Valley and Flagstaff, the commissions are more established than in his area, where the commissions at times have been in the 4% range.<\/p>\n

Using an overall statewide average of 5.25%, here\u2019s a breakdown of how much you might pay in real estate commissions based on what a home sells for in six of the largest cities in Arizona:<\/p>\n\n\n\n\n\n\n\n\n\n
Arizona city<\/strong><\/td>\nMedian home price<\/strong><\/td>\nTypical commission at 5.25%<\/strong><\/td>\n<\/tr>\n
Phoenix<\/td>\n$515,000<\/td>\n$27,038<\/td>\n<\/tr>\n
Tucson<\/td>\n$379,000<\/td>\n$19,898<\/td>\n<\/tr>\n
Mesa<\/td>\n$491,800<\/td>\n$25,820<\/td>\n<\/tr>\n
Chandler<\/td>\n$589,500<\/td>\n$30,949<\/td>\n<\/tr>\n
Gilbert<\/td>\n$650,000<\/td>\n$34,125<\/td>\n<\/tr>\n
Glendale<\/td>\n$460,000<\/td>\n$24,150<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Median home prices are calculated from multiple public sales data sources.<\/em><\/p>\n

HomeLight gathers agent commission data from cities throughout the U.S. To see if we have commission rates for your city, try our Agent Commissions Calculator<\/a>. You might also be interested in our Net Proceeds Calculator<\/a> and Home Value Estimator<\/a>.<\/p>\n

Still curious about commission rates in Arizona? Here are the answers to common questions about real estate agent commissions:

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Who pays real estate commission fees?<\/h2>\n

The seller will pay the listing agent\u2019s fee. As Michener explains, the commission can generally vary depending on what the listing agent has determined is appropriate with the seller\u2019s approval. This will then be divided between the listing agent and their brokerage in a predefined split, usually 70\/30, with the agent getting the lion\u2019s share.<\/p>\n

\u201cThey generally go into the listing knowing exactly what they\u2019re going to get because it\u2019s [listed] at the bottom of the property profile and shows them what they\u2019re going to receive in terms of compensation,\u201d says Michener.<\/p>\n

Licensed real estate agents access these property profiles on the local multiple listing service<\/a> (MLS), a database of homes for sale that is maintained by real estate professionals.<\/p>\n

When is the commission paid?<\/h3>\n

The real estate commission will automatically be deducted from the sale proceeds at the time of closing<\/a>. Until then, you typically won\u2019t owe any money to the real estate agent.

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Does the agent get to keep the full commission?<\/h2>\n

Although the seller pays the entire commission, the listing agent<\/a>, who is representing the seller in a transaction, doesn\u2019t keep it all. Part of their commission will go toward marketing your property<\/a> with professional photography, open houses, offline marketing, and more.<\/p>\n

Before the settlement terms of the NAR lawsuit were approved, the commission was typically split 50\/50 with the buyer\u2019s agent<\/a> to compensate them for bringing a buyer to the sale and coordinating the buy side of the transaction. So, around 2.5% to 3% goes to the listing agent, and the other 2.5%\u20133% goes to the buyer\u2019s agent.<\/p>\n

Both the listing agent and the buyer\u2019s agent will then share a percentage of their commission with their sponsoring broker.<\/p>\n

These split rates can vary; however, it\u2019s common for the listing agent to give their broker<\/a> anywhere from 30%\u201350% of their commission, depending on the agent\u2019s level of experience, their market size, and brokerage agreement.

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How is the commission divided between agents?<\/h2>\n

The commission that\u2019s paid by the seller<\/a> will typically be split among each agent and the brokerages through which they hang their real estate license. Let\u2019s say you sell your home for $420,000, and both the buyer agent and the listing agent get a 3% commission. The total commission would be $25,200, and each agent has an 80\/20 split agreement with their brokerage. Here\u2019s how that might look:<\/p>\n