How Much Do Real Estate Agents Make in Arizona?
Most real estate agents in Arizona work on commission, as they do in the rest of the country. How much do real estate agents make in Arizona? Keep reading to learn the factors influencing income.
Average Real Estate Agent Salary in Arizona
According to data collected by Colibri Real Estate School, the average salary for a real estate agent in Arizona is $139,539. While we use the word “salary,” it’s important to note that most real estate agents work solely on commission, which is based on a percentage of the property’s sale price.
This commission system has been in place for seller’s agents since the 1950s and, despite recent headlines, continues to be the way real estate agents in Arizona and the rest of the country are paid.
Average Real Estate Commission in Arizona
The average real estate commission rate in Arizona is 5.68%, according to a survey conducted by FastExpert. (For comparison purposes, the national average real estate commission rate is 5.57%.)
According to Zillow, the average home value in Arizona is $434,773, up 3.9% over the past year. This means that real estate professionals may earn $24,695 for services related to the average real estate transaction.
$434,773 x 5.68% = $24,695
In Arizona, the seller typically pays the real estate commission, which is typically divided between the seller’s agent and buyer’s agent. However, this payment structure may change, and more buyers may pay their representatives directly.
All agents then give a share of the commission to their brokerage, which is negotiated between the agent and the brokerage company.
If a transaction’s total real estate commission is $24,695, the seller’s agent and their brokerage will share the $12,347 payment. The other half of the commission will be split between the buyer’s agent and their brokerage.
Average Arizona Real Estate Commission by Market
Below is the average home value in Arizona’s ten most populated cities. Based on a 5.68% commission rate, here’s how much real estate professionals may earn by selling an average property.
Average Real Estate Commission for 10 Arizona Cities
| City | Average Home Value | 5.68% Real Estate Commission |
| Phoenix, AZ | $431,906 | $24,532 |
| Tucson, AZ | $334,925 | $19,034 |
| Mesa, AZ | $443,952 | $25,216 |
| Chandler, AZ | $534,200 | $30,343 |
| Gilbert, AZ | $584,424 | $33,195 |
| Glendale, AZ | $419,081 | $23,804 |
| Scottsdale, AZ | $830,727 | $47,185 |
| Peoria, AZ | $500,229 | $28,413 |
| Tempe, AZ | $487,336 | $27,681 |
| Surprise, AZ | $437,574 | $24,854 |
Source for Average Home Value: Zillow. August 2024
Again, this commission is typically split four ways. Buyer’s and seller’s agents each get part of the commission, which they share with their respective brokerages.
Other Factors Influencing a Real Estate Agent’s Income
How much commission does a REALTOR® make in AZ? Besides the sale price of the property, other factors influence the income of a real estate agent. Consider these factors as you think about a career switch.
Number of hours you devote to your business
Part-time real estate agents in Arizona can make a healthy income. Colibri Real Estate School’s data shows that while full-time agents in Arizona make $139,539, part-time agents earn an average income of $60,283.
Related article: Real Estate as a Part-Time Job: Can You Be a Part-Time Real Estate Agent in Arizona?
Real estate niche
Agents specializing in an underserved niche market may discover they can earn more than agents who don’t associate themselves with a particular specialization. Some of the most profitable specializations in Arizona are second/vacation homes, luxury homes, and affordable housing.
Some agents specialize in commercial real estate. Commercial real estate commissions vary. You might see the same 6% commission rate that you typically find in the residential real estate world. However, some commercial commissions are graduated (5% up to $1M, 4% of $1M-$5M, for example). Finally, some Arizona commercial real estate agents agree to work on a project for a flat fee.
If you want to focus on commercial real estate in Arizona, take as many continuing education courses and specialized training as possible. Commercial real estate agents do not need a specific license.
Years of experience
Real estate agents with years of experience tend to make more money than beginning agents. When starting the industry, you might struggle to close many deals. However, as you grow your network and brand, you’ll find people reaching out to you instead of you trying to find leads.
Also, an Arizona real estate agent with at least three years of experience can go through the licensing requirements to become a broker. Brokers can become leaders in their brokerages (or open their own shops) to increase their earning potential. Arizona real estate brokers earn an average income of $173,653.
Income potential is one reason people become real estate agents in Arizona. Agents also enjoy a flexible schedule and the satisfaction of helping families find their forever homes. When you’re ready to start your Arizona real estate pre-licensing courses, turn to the Arizona School of Real Estate & Business (ASREB).
ASREB is a leading real estate school in Arizona. In fact, we have the highest pass rates out of any other school in the state. ASREB offers in-person, livestream, and at-your-own-pace online classes. You can also depend on ASREB for industry-leading exam prep and continuing education courses.
- Matarazzo, Steph. “Average Real Estate Agent Commissions by State (2023 Survey).” FastExpert. October 26, 2022. https://www.fastexpert.com/blog/real-estate-agent-commissions-by-state/.
- “Arizona Home Prices & Home Values.” August 1, 2024. Zillow. Arizona Home Prices & Home Values | Zillow