In this post, you will learn about how much real estate agent makes in Arizona and their commission structure.
Who is a real estate agent?
A licensed real estate professional is authorized to buy, sell, lease, or rent property on client’s behalf.
Real estate market trends in Arizona
The real estate industry of Arizona plays a big role in maintaining the economic health of the state.
Arizona is rich in stunning and vibrant cities and hence, offers a lot of real estate opportunities.
What are the Aspects that Determine the Salary of a Real Estate Agent in Arizona?
Real estate agents’ salaries in Arizona are not standardized as there are many factors at play here. Typically, the earnings are in the form of commissions rather than a fixed salary.
A commission is a certain percentage of the selling price of a property. The buyer’s and seller's agents split this amount as per the contract terms.
What are the factors that influence the commission payable to a real estate agent in Arizona.
Where the availability of real estate agents is more, the commission rates are low. The same holds when the market is on a downturn and the demand for housing is not high.
However, you get higher commissions when you gain a lot of experience in this field and develop good negotiating skills. You bring in more business and the brokerage may be willing to pay higher commissions to you too.
The rate of commission payable to real estate professionals in Arizona
The commission on real estate transactions payable to agents ranges between 2% to 3% of the selling price. However, this varies between agents based on experience in this field and negotiation skills.
Data on real estate agent salaries in Arizona show that the amount of commission earned is dependent on the business turnover.
Hence, if you are successfully closing high-value transactions regularly, your income potential is significant. On the other hand, during slower market periods, the income may be lower.
The average salary for a real estate agent in Arizona is $51,000 per year. If you compare it with the national average, this is about 6% less than it. This salary can vary between $16,500 to $ 170,000 depending on the various factors explained above.
While low performers earn around $25,000, the high performers may earn up to $110,000 per year. Performance is the biggest indicator of all. This income includes tips, bonuses, taxable wages, and more.
Commissions earned by real estate agents in Arizona
As established earlier, real estate agents work on commissions rather than salary. This answers the question of how much commission does a realtor make in Arizona”.
Other income sources for real estate agents in Arizona
- Property Management where agents offer to manage properties on behalf of landlords or owners.
- Real estate investments where experienced agents can buy and sell properties for a profit on their own
- Imparting training and education to others in the form of workshops, seminars, and creating continuing education coursework.
- Posting blogs and other authoritative content on websites as well as podcasts about the real estate industry.
- Dabbling in commercial real estate through property management and business consultations. Income generated in these cases can be quite substantial.
- Get into real estate appraisal after passing a related exam. You can offer valuation services for properties being bought or sold in the market.
- You can also promote real estate services and products through affiliate marketing and earn a commission on every deal closed through you.
- Referrals are also an excellent way to earn some extra money. Refer your past clients to members of your network in other states and earn extra commission. You can be sure that the favor will be returned sometime later.
Bonuses and Incentives for Real Estate Agents in Arizona
Real estate agents in Arizona get extra income from bonuses and incentives payable on performance.
The most common is performance bonus where brokerages pay amounts on high sales. Even you can earn a bonus by recruiting new agents into the brokerage. Another type of incentive paid is when you put in extra marketing efforts to bring in new clients or convert leads into solid sales.
Brokerages often encourage their agents to go for additional training and certifications so that they can offer better client service. Brokerages generally pay good amounts to their agents for acquiring additional certifications related to their work and the industry.
Real estate job opportunities in Arizona
- Real estate agent
- Real estate broker
- Property Manager
- Real estate appraiser
- Real estate developer
- Real estate analyst
- Commercial real estate agent
- Real estate marketing specialist
- Real estate educator/trainer
- Real estate loan officer
- Real estate legal professional
- Title officer or Escrow officer
- Real estate inspector
- Real estate photographer/videographer
- New Home sales consultant
Arizona’s economic conditions offer a variety of career paths for those with a passion for real estate. This is a popular choice among people because it also generates great financial rewards to fulfill your financial goals.