W
hen buying or selling a house in Arizona, many people hire a real estate agent to represent them, but this comes with a cost - a commission that can add up quickly. Agents typically earn between 2.5 and 3 percent of the home's sale price, which translates to over $10,000 on a $350,000 home. In Arizona's pricey housing market, where the median home costs over $441,700, this fee can be substantial.

    The total commission in Arizona averages 5.4 percent, slightly higher than the national average. This breaks down into an average of 2.78 percent for listing agents and 2.62 percent for buyer's agents. Commission rates vary by market, with Phoenix, Scottsdale, and Tucson having different median home prices and corresponding commission amounts.

    Real estate agents provide valuable services to both buyers and sellers, including researching neighborhoods, arranging tours, and negotiating contracts. They also handle paperwork and disclosures during the closing process. In Arizona, new commission rules allow buyers to pay their own agent's fee in some cases, but sellers may still opt to cover this cost.

    While hiring an agent can be expensive, they offer expertise and guidance that can make a significant difference in the home-buying or selling process. Agents are licensed professionals who know their markets well and have access to industry resources. However, it's essential to work with an agent you trust, as a bad fit can feel like wasted money.

    If you're looking to save on fees, consider negotiating with your agent, using a discount brokerage, or exploring alternative options like selling the house yourself or directly to a cash homebuyer. When finding an agent, research their experience and reputation, ask for referrals, and interview multiple candidates before making a decision.