📊 The data: We polled local agents and found that the average real estate commission in Arizona is 5.40%, which is less than the national average of 5.45%.
For a house sold for $291,168, this rate translates to $15,723 in real estate agent commission costs.
Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.
Below, we cover everything you need to know commission costs in Arizona and also give you tips for getting low rates.
How real estate agent commission works in Arizona
There are two real estate agents involved in a typical home sale:
- The seller's agent (also called the listing agent), representing the home seller
- The buyer's agent, who represents the person buying the home
The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission, and is baked into the sale price of a home and split between the two agents.
Based on our research, the average commission split in Arizona has 48.50% of the commission going to the listing agent and 51.50% going to the buyer's agent.
Who pays for real estate commissions?
Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.
However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in-part — through a higher sales price.
» MORE: Who pays realtor commission.
How to save on real estate commission in Arizona
💰Best ways to save
While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
In Arizona, sellers are experiencing a hot real estate market where demand is outpacing the supply of available homes. If homes continue selling at their current rate, Arizona’s inventory of properties will be depleted in less than a month.
Because real estate agents won’t have to work as hard to bring deals to the closing table, they may be open to negotiating their commission.
This is especially true in the state’s most sought-after locations. Arizona’s current inventory is so low that sellers might receive more than their asking price — particularly in Phoenix, Tucson, and Prescott.
Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.
Tips for negotiating realtor commission in Arizona
Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.
You may have an easier time negotiating low rates if...
The Arizona housing market
While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in Arizona.
In a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more inclined to offer lower commission rates. The opposite is true in a buyer's market.
Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market.
Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market.
Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable.
To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in Arizona.
Stats and facts: The current state of the Arizona real estate market
Months of inventory
There's 0.6 months of housing inventory on the market
Homes are selling for 99.50% of their listing price
Home values have risen/fallen 11.16% year over year
Low commission real estate companies in Arizona
Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:
Discount real estate brokers in Arizona
Discount real estate brokers are companies that will list your home for a reduced commission percentage or flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.
1% (minimum $3,000)
Clever Cash Back
0.5% on homes over $150,000
Avg. Customer Rating
4.8/5 (386 reviews)
- Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
- Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
- Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
- Buyers may be eligible for 0.5% back after closing (in qualifying locations)
Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico
Up to $5,000
Avg. Customer Rating
4.3/5 (978 reviews)
- Homie is a real estate brokerage operating across the state of Utah, and in Phoenix, AZ and Las Vegas, NV
- Sellers get full service for a flat listing fee: $1,500 in Utah, $2,500 in Phoenix and Las Vegas
- Buyer's agent commission varies depending on whether the buyer is also a Homie client
- Eligible buyers get up to $5,000 back at closing — though restrictions and exclusions apply (including Homie-2-Homie deals) — learn more
- Homie offers additional in-house services for buyers, such as home insurance and mortgage broker services
- Sellers and buyers can also find recommended local service providers via Homie's Provider Marketplace
Homie is available throughout Utah and in Las Vegas and Phoenix. The total amount sellers pay varies by location.
|Location||Listing Fee||Buyer's Agent Fee*||Buyer's Agent Commission**|
*If your buyer is a Homie buyer
**If your buyer is not a Homie buyer
Flat-fee MLS listing services Arizona
Flat-fee MLS listing services offer to post your home on your local MLS for a low rate often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, this might not be a good option for you.
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- AZ FSBO Pro is a flat-fee MLS referral service that connects you with local Arizona brokers and agents who will list your home on your local MLS for a pre-negotiated rate
- Your house will be automatically syndicated and displayed on real estate sites like Coldwell Banker, RE/MAX, Keller Williams, Zip Realty, Century 21, and other popular sites
- Your listing will be syndicated in three and five business days, depending on the website it’s being syndicated to
- Listing changes can be made across syndicated websites through AZ FSBO Pro, although it does take time for these changes to appear
- Offers free home value estimate
- You set your own buyer’s agent commission rate (AZ FSBO Pro recommends 2-3%)
- If you find an unrepresented buyer, you can avoid paying buyer’s agent commission
|$89 - 3 Month MLS||$149 - 6 Month MLS||$299 - 12 Month MLS|
- Cost-effective option maxing out at $299
- No cancellation fee (no refunds)
- Listing will also appear on Realtor.com and other popular real estate sites for no additional cost
- Refers buyers and/or agents on to you
- Bare-bones service
- No agent to assist with questions about home selling
- 2-3% buyer’s agent commission often required to attract buyers
As of July 31, 2020, we could find no verifiable third-party review data for AZ FSBO Pro. We will update when this information becomes available.
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- Mountain Lake Realty is an Arizona-based real estate brokerage that specializes in flat-fee MLS listings and a-la-carte real estate services
- Built-in contract review and home valuation service
- Set your own buyer’s agent commission
- Cancel at anytime for no fee (no refunds)
- Offers a range of optional, a-la-carte services, including lockboxes, professional HD photography, aerial drone photography, Matterport virtual tours, and more
|$299 - MLS Plus Contract Review||$379 - MLS Plus Contract Review Plus Showing Time Plus Docusign Contracts|
- You’re working directly with a licensed broker, not a referral service
- No charge for listing changes
- Built-in contract review and home valuation report
- Cancel anytime with no fee
- Offers some unique and compelling a-la-carte services, like drone aerial photos and Matterport-powered 3D tours
- $699,000 max home value for basic package, $850,000 for premium package.
- No budget listing option — entry level is $299
As of August 17, 2020, Mountain Lake Realty does not have any third-party reviews, but does have an A+ rating with the Better Business Bureau.
» MORE: About flat-fee MLS services.
Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of September, 2020
- Sale prices and sale-to-list ratios: Based on Redfin data as of September, 2020 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September, 2020