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If you’ve ever wondered how much real estate agents actually make when a home sells, you’re not alone. It’s one of the most searched real estate questions in Arizona and across the country.
And with major commission rule changes rolling out after the 2024 National Association of REALTORS (NAR) settlement (still unfolding in 2026), buyers and sellers are more curious than ever about:
- How real estate agent commissions work,
- Who pays what, and
- How much REALTORS earn on a sale.
With the 2024–2026 commission rule changes, the typical real estate broker commission in Arizona looks very different from past decades.
Today, listing and buying agent compensation are negotiated separately, rather than automatically split between agents.
So let’s break it down in plain English and take a clear look at what agents earn, how commissions are calculated, and how the new 2026 landscape affects Arizona home sellers.
How Real Estate Commissions Work
Real estate commission = sale price x agreed-upon percentage
Traditionally, this was 5–6% of the total, often divided between the listing agent and the buyer’s agent. However, this structure is no longer standard. Each agent’s compensation is now negotiated independently and may differ in structure or amount.
As we move into 2026, that structure is changing due to the NAR settlement:
- Sellers are no longer required to pay the buyer’s agent
- Commission rates are fully negotiable
- Buyer’s agents may charge buyers directly or offer alternative fee structures
- More competition = more pricing transparency.
In other words, there is no standard commission anymore, and that gives home sellers more control than ever.
How Much Do REALTORS Make on a Sale?
Short answer: It depends on the commission agreement, but most agents earn either a percentage of the sale price or a flat fee, not a fixed standard rate.
The exact formula agents use is:
Commission = (commission percentage 100) x sale price
Let’s look at a few simple examples.
The following examples illustrate common commission math, but actual agent compensation may now be negotiated separately on each side of the transaction.
Example 1: How much does a REALTOR make on a $100,000 home?
If the total commission is 5%:
- (5 100) x $100,000 = $5,000 total commission
- If two agents are each compensated at 2.5% in this scenario, they would receive $2,500 each.
Example 2: How much does a REALTOR make on a $500,000 home?
If the total commission is 5%:
- (5 100) x $500,000 = $25,000 total commission
- If each agent is compensated at 2.5% in the scenario = $12,500 each.
Example 3: How much does a REALTOR make on an $800,000 home?
If the total commission is 6%:
- (6 100) x $800,000 = $48,000 total commission
- If each agent is compensated at 3% in the scenario = $24,000 each.
(We’ll talk about uneven or tiered structures in a moment.)
How REALTOR Commissions Are Changing in 2026
After the NAR settlement, commission conversations look very different, especially in Arizona.
Here’s what you can expect:
✔️Sellers now choose whether to contribute to the buyer’s agent fee.
Nothing is mandatory. Everything is negotiable.
✔️Buyers may pay their agents directly.
Some buyer agents may charge by the hour, offer a flat fee, require retainers, or use performance-based pricing.
✔️Commission percentages vary widely.
Many markets nationwide are experiencing lower total commission costs, although the numbers vary depending on the area, agent experience, and the specific terms of the agreement.
✔️Sellers have more flexibility.
Everything from a flat fee to a hybrid structure is now on the table.
✔️Full transparency is becoming standard.
Buyers and sellers understand commissions more clearly than ever.
This shift is one of the reasons flat fee real estate brokerages like AZ Flat Fee have grown so quickly — we allow homeowners to keep control of their costs.
How Agent Commission Is Structured in a Transaction
When two agents are involved (listing and buyer), compensation is now negotiated independently, although scenarios where each agent earns a similar percentage are still common.
Here are two ways to calculate the split:
Method 1: Split the total commission
Example:
- 6% on an $800,000 sale = $48,000 total
- $48,000 2 = $24,000 each.
Method 2: Split the percentage first
Using the above example:
- 6% 2 = 3% each
- 3% of $800,000 = $24,000 each.
These examples demonstrate commission math, not a required or automatic split.
Uneven or Tiered Commission Structures
Real estate commissions often do not use a single rate. Sometimes agents use blended or tiered rates.
Uneven Rate Example
If an agent charges:
- 7% on the first $200,000
- 3% on the amount above $200,000.
For an $800,000 sale:
- 7% x $200,000 = $14,000
- 3% x $600,000 = $18,000.
Total = $32,000.
This remains a common practice with luxury pricing models.
Tiered Commission Example (Incentive-Based)
Some sellers choose tiered pricing to motivate agents.
Example:
- 3% if sold below $330,000
- 3.5% if sold $330,000–$380,000
- 4% if sold at $380,000–$400,000.
If the home sells for $400,000:
- 4% x $400,000 = $16,000 commission.
You pay more, but you also net more.
How Much Are REALTOR Fees in Arizona (2026)?
This is one of the top questions we hear at AZ Flat Fee, and here’s the short, honest answer:
There is no standard commission — every fee is negotiable.
Historically, Arizona sellers paid 5–6%, split between agents.
After the rule changes, we’re seeing:
- More flat fee options
- More hybrid pricing
- More buyer-paid agent fees
- More competition.
If you sell a typical $500,000 Arizona home, the cost difference between a standard listing and AZ Flat Fee is huge.
Flat Fee vs. Percentage-Based Commission
On a $500,000 home:
-
- Standard Listing at 3% (listing side only): 3% x $500,000 = $15,000
- AZ Flat Fee Listing: $500 upfront + $3,500 at closing = $4,000
- Savings = $11,000.
And that’s just on a $500,000 home. In Scottsdale, Chandler, or North Phoenix, the savings jump dramatically.
And YES — AZ Flat Fee is full-service:
- Pro marketing
- Professional photos
- MLS exposure
- Showings and negotiation
- Contract-to-close management.
You keep your equity, rather than giving it to your agent.
How Brokers Split Commission With Their Firm
Agents usually split their earnings with their brokerage. Common splits include 60/40, 70/30, 80/20, and 90/10.
If an agent earns $20,000 commission on a sale and is on a 60/40 split, they keep $12,000, and the brokerage keeps $8,000.
This is why the total fee you pay does not equal the amount the agent personally earns.
What Arizona Sellers Really Want to Know
We hear it every day:
“How much do REALTORS make… and how much could I save?”
And that’s precisely why flat fees are becoming the new norm in Arizona. You get the same (often better) service at a predictable price.
FAQs — How Much Do REALTORS Make? (2026 Edition)
Q: How much do real estate agents make on a sale?
It depends on the commission agreement. Agents earn a percentage of the sale price or a flat fee — nothing is fixed or set by law.
Q: How much do REALTORS make in Arizona specifically?
Arizona agents typically earn anywhere from 1% to 3% on the listing side, with buyer agent compensation negotiated separately. Flat fee agents earn a predictable, fixed amount.
Q: How much does a REALTOR make on a $700,000 sale?
At 6% total commission split 50/50:
$21,000 per agent.
Q: How much does a REALTOR make on a $500,000 sale?
6% total split 50/50:
$15,000 per agent.
Q: How much does a REALTOR make on a $300,000 sale?
6% total split 50/50:
$9,000 per agent.
Q: Is commission negotiable in 2026?
Yes, everything is negotiable. There is no standard rate.
Q: Does AZ Flat Fee offer full service?
Yes. You receive full representation for a flat $3,500 listing fee (plus a $500 upfront payment) — no percentage-based commissions.
Thinking About Selling Your Arizona Home?
If you’re selling in Phoenix, Tucson, Mesa, Chandler, Gilbert, Glendale, Scottsdale, or anywhere across the Valley, you deserve full service, transparent pricing, and the ability to keep more of your equity.
AZ Flat Fee delivers exactly that for a fraction of the typical costs.
Full service. Transparent pricing. One flat fee.
