Real Estate Commission in Arizona: What’s New in 2025?

6 mins read Nov 28, 2024
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Subarna Jana

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Editor
Edited By

Subarna Jana

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Subarna J. is a skilled editor with expertise in real estate, dedicated to crafting clear, engaging content. With a flair for delivering error-free content, Subarna ensures every piece resonates with readers. In her free time, you'll find her singing, crocheting, or diving into a good book.

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Real estate commissions have dropped significantly after the NAR Settlement. Homeowners once paid 5% to 6%, costing up to $27,042 on a $450,700 home. Now, the negotiable buyer agent fees cut costs to as low as 3%, saving sellers up to $13,521.

Many sellers explore Flat Fee MLS Arizona companies, which provide MLS exposure for a low, upfront fee. This helps sellers to have more control over closing costs, keeping more of their hard-earned money.

What Is the Real Estate Commission in Arizona?

The average real estate commission is around 5% to 6%, which includes listing agent and buyer agent commissions. Real estate agent commission rates vary depending on location, property type, and market conditions.

  • In states like Anthem or Kingman, the median home sale prices have grown by 23.9% and 18.3% respectively. Agents may likely charge up to 4% due to the high competition among the buyers.
  • In states like Scottsdale and Gilbert where the housing market is less competitive, commission rates are often affordable. They may typically range from 2.5 to 3%.

Who Pays the Realtor Fees in Arizona?

Typically, home sellers pay the real estate commission in Arizona. The commission is split between the listing agent and the buyer’s agent. It is deducted from the seller’s proceeds at closing. This means, the buyer usually doesn’t pay the agent fees directly.

However, due to the changes in new Realtor law, the buyer might directly pay their agent. Sellers in the Copper State may offer concessions to stay competitive.

New Laws and the NAR Settlement: What’s Changed?

The NAR Settlement went into effect on August 17, 2024. Buyer agent commissions can no longer be offered on the MLS. This implies that sellers will save thousands. It also means there are a lot more compliance and litigation risks.

Here’s what this means for you:

  • Sellers Can Save Thousands in Commissions: You will likely pay far less than the traditional 3% buyer agent commission. That’s because buyer agent commissions will be negotiated twice: when buyers hire buyer agents, and when sellers review offer contracts.
  • Seller Priority #1 Will Be Paperwork (To Mitigate Compliance & Litigation Risks): Buyer’s agents will guide you through every step, from understanding the seller’s disclosures to finalizing the deal. Moreover, they will ensure your paperwork is intact and in compliance with state laws and MLS rules.
  • Negotiations Can Now Feel Like Haggling: Buyer agent commissions are now included in offer contracts and buyer agency agreements. Buyers may request sellers to cover the commission rates as concessions. So, both buyers and sellers will have to negotiate commissions alike.
  • Buyer Agent Commissions Can Be Offered Offline: Buyer agent fees can still be offered outside of the MLS. They just cannot be advertised on the MLS.

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Cost Comparison: With and Without a Listing Agent

You could save up to $12,772 when selling a median-priced $450,700 home with a Flat Fee MLS service.

Suppose, you are selling a house in Arizona priced at $450,700. Assuming you pay a 3% commission fee, you’ll pay $13,521 to your listing agent. With Houzeo, you could reduce that cost significantly by paying only $399 with $350 at closing.

Service ProviderFeeCommission DueSavings
Traditional Agent3%$13,521$0
Houzeo$399$749$12,772

Alternatives to Texas Real Estate Commission

If you’re looking for an affordable alternative to an agent-assisted sale, here are a few options to consider:

  • List With a Discount Real Estate Broker: Many discount real estate brokers in Arizona provide all the services traditional Realtors offer at discounted rates. They usually charge 1% to 1.5% commissions to list your home.
  • Sell “For Sale By Owner”: With Arizona For Sale By Owner websites, you can sell your home online, review contracts, and schedule showings, all at your fingertips! You also get paperwork and negotiation assistance.
  • List for a Flat Fee: Flat Fee MLS listing service companies can list your property on your local MLS within 24 to 48 hours. Also, you can get top dollar for your house.
  • Sell to an iBuyer or Cash Buyer: A cash buyer can make an instant cash offer and help you sell your house fast in Arizona. iBuyers have strict purchase criteria but can make cash offers as high as 80% of the Fair Market Value.
👉 States like Phoenix and Scottsdale often see high activity from cash buyers. This is due to their growing popularity among working professionals and investors.

How to List on the Arizona MLS with Houzeo and Save $$$?

Here are 5 easy steps to save thousands of dollars and have your listing active within 24 to 48 hours:

  1. Create an Account: Visit Houzeo.com, download the Houzeo mobile app, and click “Start Listing Now.” Provide basic details such as your name and contact information to set up your account.
  2. Enter Property Information: Log in to your Houzeo dashboard and click “Sell a Property.” Provide details about your home, such as the number of bedrooms, bathrooms, or any standout features.
  3. Set Your Asking Price: Use Houzeo’s home worth calculator to determine your home’s market value. Then set a competitive price for maximum benefit.
  4. Choose a Flat Fee MLS Plan: Houzeo offers four flat fee MLS plans. Select the plan that suits your needs.
  5. Upload Photos and Sign the Listing Agreement: Add aesthetic and non-personal photos to showcase your home’s best features. Upload pictures of your kitchen, bedroom, and bathrooms to attract potential buyers.

» Houzeo Reviews: Find out why Houzeo is one of America’s best Flat Fee MLS listing services.

What’s the Best Way to Save the Realtor Commission in Arizona?

The best way to save on commissions is to learn how to negotiate real estate commissions with your agent. You can also opt for Flat Fee MLS Listing services like Houzeo and eliminate the 3% listing agent fee.

With Houzeo, your home can be on the MLS within 24 to 48 hours. You will also get 24/7 customer support. Your listing will also receive maximum exposure via top real estate websites like ZillowTruliaRedfin, and more.

Frequently Asked Questions

Who pays Realtor commission in Arizona?

Usually, sellers pay the Realtor commission. However, after the NAR settlement, sellers are no longer obliged to pay the buyer's agent commission.

What are the new real estate commission rules and regulations in Arizona?

The new real estate commission law in Arizona made buyer agent commissions negotiable. After the NAR Settlement, sellers can now save more. Earlier, they were responsible for covering both listing and the buyer's agent fees. Now, buyers handle their agent’s fee directly.

How much does a Realtor make in Arizona?

Realtors in Arizona typically earn a real estate commission of around 5% to 6% of a home's sale price. The commission is split between the listing agent and buyer's agent. However, their actual earnings can vary depending on the market conditions, property type, and location.


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