Average Real Estate Commission in Arizona

By 

Bailey Peterson

Updated 

February 19th, 2021

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How commission works | Getting low rates | Low commission companies | Methodology

📊 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.

» MORE: Learn how Clever can help you save on commission.

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.

» LEARN: More about how real estate commissions work.

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:
  • Negotiating rates with a traditional realtor
  • Working with a low commission real estate company

» MORE: Options for saving on realtor commission

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.

With Clever you can save on commission without negotiating… AND work with top agents!

Clever has pre-negotiated low commission rates, with top local agents across the country.

The result is that you can save thousands of dollars when you sell your home, without having to haggle over commission rates!

With a Clever agent, you get full service and only pay a listing commission of $3,000 or 1%.

Tips for negotiating realtor commission in Arizona

Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.

Factor
You may have an easier time negotiating low rates if...
Your situation
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The Arizona housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising

» LEARN: How you can negotiate lower commission rates.

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.

📖Definitions

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

Factor
Trends
Indication
Months of inventory
There's 0.6 months of housing inventory on the market
Seller's market
Sale-to-list price
Homes are selling for 99.50% of their listing price
Seller's market
Home value
Home values have risen/fallen 11.16% year over year
Seller's market

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.

Listing Fee

1% (minimum $3,000)

Clever Cash Back

0.5% on homes over $150,000

Avg. Customer Rating

4.8/5 (386 reviews)

Description
Locations
Pros & Cons
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

Pros
  • Listing fee of $3,000 (or 1% on homes >$350K) for a full-service agent
  • Sellers only pay once their home is sold
  • Partner Agents are top, local realtors with at least 5 years experience
  • Agent matches are customized and based on your specific situation
  • Eligible buyers receive 0.5% in Clever Cash Back
Cons
  • Sellers may not be matched with an agent from their preferred brokerage
  • While homes are listed on the MLS, there's no independent Clever listing site.







As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.

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Homie Real Estate

Home Real Estate

Listing Fee

$1,500-$2,500

Buyer Rebate

Up to $5,000

Avg. Customer Rating

4.3/5 (978 reviews)

Description
Locations
Pros & Cons
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 FeeBuyer's Agent Fee*Buyer's Agent Commission**
Utah$1,500$1,3002.5-3%
Las Vegas$2,500$2,0002.5-3%
Phoenix$2,500$2,0002.5-3%

*If your buyer is a Homie buyer

**If your buyer is not a Homie buyer

Pros
  • Sellers get full service for a flat $1,500-$2,500 listing fee
  • Additional savings when you sell to a Homie buyer
  • Qualifying buyers get up to $5,000 back at closing
  • In-house legal team offers assistance with contracts and negotiations
  • Offers in-house mortgage and insurance broker services — learn more

Cons
  • $199 cancellation fee
  • Salaried agents could be less motivated to sell your home for top dollar
  • Homie-2-Homie deals lead to dual agency, which is a potential conflict of interest for buyers
  • A percentage-based buyer rebate may be a better option with more expensive homes
  • No buyer rebate if you buy from a Homie seller

As of May 20, 2020, Homie's average customer rating is 4.3/5 based on 978 reviews across Google, Facebook, Zillow, and Yelp.

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» MORE: About discount real estate brokers.

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.

AZ FSBO Pro

AZ FSBO Pro

Price Range

$89-299

Number of Photos

10-25

Listing Term

3-12 months

Description
Pricing
Pros & Cons
Reviews
  • 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
  • 3-month listing on MLS
  • Syndicated to Coldwell Banker, RE/MAX, Keller Williams, Zip Realty, Century 21
  • 10 photos
  • Includes a free ebook on “How to FSBO”

$149 - 6 Month MLS
  • Same as 3 Month MLS package, plus:
  • 6-month listing on MLS
  • 15 photos

$299 - 12 Month MLS
  • Same as 6 Month MLS package, plus:
  • 12-month listing on MLS
  • 25 photos


Pros

  • 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

Cons

  • 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

Mountain Lake Realty

Price Range

$299-379

Number of Photos

100

Listing Term

9-12 months

Description
Pricing
Pros & Cons
Reviews
  • 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
  • 9-month listing on the MLS and Realtor.com
  • Syndicated to sites like Zillow, Trulia, IDX, and more
  • 100 photos (to MLS dropbox)
  • Virtual tour (ARMLS only)
  • Home valuation upon request

$379 - MLS Plus Contract Review Plus Showing Time Plus Docusign Contracts
  • Same as basic package, plus:
  • 12-month listing on the MLS and Realtor.com
  • Broker-assisted contrct review
  • All paperwork handled via Docusign
  • No fee to change or cancel listing


Pros

  • 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

Cons

  • $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.

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» MORE: About flat-fee MLS services.

Methodology

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

Additional resources for Arizona home sellers

Average real estate commission rates in Arizona cities

Phoenix