U
nderstanding real estate commissions is crucial when navigating Arizona's housing market, whether buying or selling a home. New nationwide regulations introduced in 2024 aim to increase transparency and improve communication between agents and clients.

    Before diving into commissions, it's essential to understand the current Arizona housing trends:

    * Median Home Sale Price: $442,000

    * Housing Supply: 37,216 (+26.8% YoY)

    * Homes Sold Above List Price: 15.0% (-5.3 pts YoY)

    Real estate commissions are fees paid to agents for assisting in home purchases or sales. These fees typically range from 1.5% to 5% of the home's final sale price and are usually paid at closing.

    Historically, sellers have covered both their agent's commission and the buyer's agent fees. However, starting August 17, 2024, buyers must sign an agreement outlining their agent's fee before touring homes. While buyers can still negotiate for the seller to cover their agent's fees, this amount is negotiable and varies depending on the deal.

    Commission rates are flexible and open to negotiation based on factors like location, market trends, and service level. Here are examples of typical commission costs in Arizona's major cities:

    * Phoenix: $450,000 home sale price, 1.5% commission = $6,750; 3% commission = $13,500; 5% commission = $22,500

    * Tucson: $321,500 home sale price, 1.5% commission = $4,823; 3% commission = $9,645; 5% commission = $16,075

    * Mesa: $459,250 home sale price, 1.5% commission = $6,889; 3% commission = $13,778; 5% commission = $22,963

    Redfin offers competitive rates, with listing fees starting as low as 1%. Buyer fees may vary by location.

    Real estate commissions are fully negotiable in Arizona. Agents may adjust their fees based on the transaction specifics or services provided. Factors like marketing approach, experience, and property type can influence commission rates.

    To negotiate effectively:

    * Consult multiple agents to compare commission structures

    * Consider performance incentives for quick sales or higher offers

    * Highlight property strengths to leverage lower commission rates

    Key changes in 2024 include buyers signing agreements specifying their agent's fee before touring homes and buyer agent fees no longer being shown in MLS listings. Buyers can still negotiate with sellers to cover these fees, while sellers will need to discuss contributing toward the buyer's agent commission as part of the offer process.

    To find a real estate agent in Arizona, consider working with Redfin agents who guide you through every step of the process. If you choose to sell without an agent (FSBO), you can bypass paying commission fees but handle all aspects of the sale yourself.