How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
Our December 2023 survey of local agents found that the average real estate commission in Phoenix is 5.37%, which is less than the national average of 5.49%. Calculate your estimated commission in Arizona.
The average total real estate agent commission rate in Phoenix is 5.37% of the final sale price. Based on the latest median home sale price in Phoenix ($452,156), that translates to a total cost of roughly $24,281.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Phoenix, the average listing agent fee is 2.71%, while the average buyer’s agent fee is 2.66%.
Real estate agent commissions make up a significant portion of the closing costs for Phoenix home sellers. But you don't have to pay the full 5.37% to a traditional agent. If you're selling a home in Phoenix, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 32% on realtor fees, or about $7,732 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in Phoenix
| Average listing commission | 2.71% |
| Average buyer's agent commission | 2.66% |
| Total average commission | 5.37% |
There are usually two real estate agents involved in the real estate transactions of a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average real estate commission paid in Phoenix for listing agents is 2.71% of the final home price and 2.66% for buyer's agents, for a total of 5.37%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Phoenix
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Phoenix. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Looking to save on real estate fees? Clever can help by pairing you with a top local listing agent who offers a competitive 1.5% commission rate. This savvy move can help you retain a larger portion of your home's selling price.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in Phoenix?
When you put your home on the market in Phoenix, you'll find that the average realtor commission covers both the listing and buyer's agents, and it's subtracted from the home's final sale price. You, as the seller, won't need to worry about paying these fees upfront.
Your listing agent earns their commission by conducting a thorough market analysis, marketing your property effectively, and managing the closing process. On the other side, the buyer's agent earns their commission by finding a qualified buyer who agrees to the purchase terms and successfully closes the deal.
Remember, as the seller, these commissions won't come out of your pocket directly. Instead, the agents' fees are taken from the proceeds of the sale after the transaction is complete.
Why do sellers pay the buyer's real estate agent commission?
Covering the buyer's agent commission can significantly enhance the appeal of your listing. By shouldering this cost, you make your property more enticing to potential buyers who might otherwise be daunted by the prospect of paying their agent's commission on top of other hefty expenses like the down payment and closing costs.
Offer a competitive buyer's agent commission, and you'll find real estate agents more eager to bring your home to their clients' attention. Such a strategy can lead to a flurry of offers. Aim to set the buyer's agent commission around 0.5% below the local average, which stands at 2.66% in Phoenix. This move can make a world of difference in attracting serious buyers.
Will the NAR lawsuit change how real estate commission works?
On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023.
While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need.
The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.
» READ MORE:
How to save on realtor fees in Phoenix
Commission rates are not set in stone. In fact, we found that while 2.71% is the average listing commission in Phoenix, rates typically fall between 2.00% and 3.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.00%– 3.00% |
| Buyer's agent commission | 2.50%– 3.00% |
| Total commission range | 4.50%– 6.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in Phoenix?
Real estate commission is always negotiable. In Arizona, the 29 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who are repeat clients | 79% |
| Homeowners who also plan to buy with you | 62% |
| High competition for clients | 52% |
| Seller’s situation (e.g. divorce or death in the family) | 52% |
| Homes expected to sell quickly | 34% |
| Higher property values | 31% |
| High buyer demand in the area | 21% |
| Homeowners with more than one property to sell | 14% |
| Periods of low housing inventory | 14% |
| Houses in excellent condition | 14% |
| Highly experienced home sellers | 14% |
Negotiating realtor fees in Phoenix depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The Phoenix housing market |
|
Your situation may be unique, but the real estate dynamics in Phoenix affect every seller in the region.
In a seller's market, where you hold more negotiating power, listing agents often find homes easier to sell and might be more open to reducing their commissions. Conversely, in a buyer's market, agents are less likely to budge on their fees.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To get a pulse on the real estate climate in your area, consider these three key indicators:
- Inventory Months
- Sales Price to List Price Ratio
- Home Value Trends
If signs indicate Phoenix is firmly a seller’s market, you may be in a good position to negotiate a lower commission. However, if conditions favor buyers, it may be harder to get an agent to accept a cheaper rate.
The current state of the Phoenix real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.37 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 85.42% of their listing price | Buyer's market |
| Home values | Home values have fallen 24.21% year over year | Neutral market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in Phoenix
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For those looking to sell their homes in Phoenix and keen on cutting down realtor fees without sacrificing quality, Clever stands out as the premier choice.
✅ Benefits and features: Clever slashes the commission rates by as much as half compared to conventional realtors. Their complimentary matching service is highly praised and comes with zero strings attached.
🏠 How it works: Clever links you with elite realtors from esteemed agencies such as RE/MAX and Compass within the Phoenix area. This allows you to weigh your options and choose a realtor who aligns with your specific needs, all while taking advantage of Clever's exclusive 1.5% listing fee (on par with Redfin's rate).
Pros
- Choose from experienced realtors from respected brokerages (not discount agents)
- Low 1.5% listing fee when you work with Clever (regardless which agent you select)
- Several agents to choose from in Phoenix, AZ
Cons
- No guarantee that you'll be able to work with the specific agent or brokerage you have in mind
- Additional services like professional staging, drone photos, and 3D tours may come at an extra cost (agents discuss details during their listing presentation)
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Redfin's services present a solid option for Phoenix-based home sellers, particularly those who are considering a dual transaction of buying and selling.
✅ Benefits and features: Redfin's 1.5% listing fee is an attractive feature for sellers looking to cut down on commission costs. For those who utilize Redfin's services to both purchase and sell properties within a 12-month period, the benefit is even greater, with the listing fee reduced to a mere 1% for sellers.
🚩 Potential red flags: Redfin has a $4,500 minimum commission fee in Phoenix. This means that for properties valued under $300,000, the commission cost might exceed the standard 1.5% rate. Additionally, Redfin's reliance on technology and a team-based service model may not align with every seller's preference. The selling process is largely managed online, and clients are assigned both a Lead Agent and a support team to handle various aspects of the sale.
Pros
- Significant savings on listing fees
- Well-established brand with capable agents
- Appeals to sellers who value a remote, online approach
Cons
- Might not be the best choice for those seeking a personalized, one-on-one agent experience
- Higher minimum fee in Phoenix compared to other options in the area
- Offers fewer agent choices compared to Clever
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Trelora Realty is a compelling choice for budget-conscious sellers in Phoenix, AZ, looking for cost-effective realty services. However, those who prioritize a tailored selling experience may find Trelora less suitable.
✅ Benefits and features: Trelora is known for its competitive listing fees that are among the lowest in the industry, garnering a strong track record with favorable consumer feedback. Their distinctive approach involves a collective of agents working with each seller, which can enhance the breadth of market knowledge available to clients.
🚩 Potential red flags: The collective approach of Trelora, while beneficial for harnessing diverse expertise, hinges on seamless communication. Any lapses in this area could lead to potential misunderstandings. It's important to note that you may not receive as much personalized support as you would working with a single dedicated agent.
Pros
- Significant savings with a low 1% commission rate
- Large number of positive reviews
- Some sellers may prefer the team-based approach over working with a single agent
Cons
- Team-based approach may not allow as much one-on-one agent support
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Phoenix's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of February 2024
- Sale-to-list ratios: Based on Zillow data as of February 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2024
