How Real Estate Commissions Work in Arizona (And Who Really Pays Them)
What Buyers & Sellers Really Need to Know
Buying or selling a house in Arizona?
Then let’s talk about the money part most people avoid… commissions.
It sounds complicated, but I’m here to break it down in plain English. Let’s go!
💸 What’s a Commission, Anyway?
A real estate commission is a fee paid to agents who help you buy or sell your home.
It’s how agents get paid for their time, work, and expertise.
In Arizona, it’s usually a percentage of the sale price — not a flat number.
Example:
If your home sells for $500,000 and the commission is 5.4%, the total commission is $27,000.
💡 Good news: This percentage is not fixed. You can negotiate it!
🧑🤝🧑 Who Gets That Money?
Two people usually split that commission:
Listing Agent (Helps the Seller)
Buyer’s Agent (Helps the Buyer)
They share it 50/50 most of the time.
But there’s a big change in 2025...
🔄 What’s Changed in 2025? (Thanks, NAR Settlement)
There’s a new rule:
👉 Buyers must now sign a written contract with their agent before touring homes
👉 Buyers are responsible for paying their agent’s fee
Wait, what? 😲
Yes, that’s different from the past, where the seller usually paid both agents.
Now, buyers and sellers have to negotiate who pays what, and how much.
But here’s the good news:
📝 Buyers can ask the seller to cover their agent’s fee as a concession in the offer.
It’s all about smart strategy now.
📃 What’s a Buyer-Broker Agreement?
It’s a written agreement where the buyer and their agent agree:
✅ What the agent will do
✅ How long they’ll work together
✅ How the agent gets paid (flat fee, %, etc.)
No more handshake deals. Everything must be clear and in writing.
⚖️ What About Sellers?
If you're a seller, you're still paying your listing agent — but now you don’t have to advertise how much you’ll pay the buyer’s agent on the MLS.
That gives you more control.
💡 Tip: You can still offer a credit to the buyer so they can pay their agent — just include it in the deal!
👀 Real-Life Example
Let’s say:
You're selling a home for $450,000
You agree to pay your agent 2.5% = $11,250
Buyer agrees to pay their agent 2.5% (maybe through a seller credit!)
Boom. The total 5% commission gets split between both agents, and everyone wins — as long as it’s all written and agreed upon.
🏁 Bottom Line
Real estate commissions in Arizona have changed.
But if you’re informed, smart, and partner with the right agent — you’ll win.
👉 Sellers: You still pay your listing agent.
👉 Buyers: Now you choose and pay your agent — but you can ask the seller to help!
👉 Everyone: Get it in writing. Always. No surprises.
Ready to buy or sell smart in Arizona? Let’s talk — I’ll help you decode the process and protect your wallet.
