In the ever-evolving real estate market, understanding the average real estate agent salary in Arizona is not just about the numbers — it’s about professional growth, market knowledge, and personal satisfaction. When you’re aware of your earning potential, it can drive you to strive for higher sales and provide better client service.

This How Much Does a Real Estate Agent Make in Arizona guide covers the financial landscape of Arizona’s real estate industry, providing insights about the typical earnings of real estate agents. We’ll explore factors that can influence salaries — from entry-level to experienced agents — and discuss how the unique Arizona real estate market contributes to these figures.

Real Estate Agent Salary Arizona

A myriad of factors can affect a real estate agent’s salary in Arizona. Anyone considering a career in the real estate industry should consider these key factors, including:

• Experience: In the real estate industry, experience often equates to higher earnings. Agents with several years of experience typically earn $87,414 per year while the average salary for entry-level agents is around $68,678 per year
• Location: Different regions within the state may have different real estate market conditions. Agents working in high-demand, high-cost areas like Scottsdale or Sedona might earn more than those in less expensive regions
• Sales Performance: An agent’s ability to market and sell properties — as well as their capacity to network with potential buyers, sellers, and other real estate professionals — can greatly affect their income
• Market Demand: Real estate is a cyclical industry with periods of high and low demand. The state of the market can, therefore, impact an agent’s average salary
• Work Hours: Those willing to work non-traditional hours, including evenings and weekends, may have the opportunity to close more deals and thus earn more

With its growing cities like Phoenix, Sedona, and Tucson, Arizona is a tourism and retirement destination. The state offers considerable potential for real estate transactions. Thus, dedicated and savvy real estate agents have the potential to do quite well in Arizona. Still, it’s important to remember that real estate income is generally commission-based and can be unpredictable.

Understanding Commissions

Real estate agents primarily earn their income through commissions — a percentage of the price of the property they help their clients sell or buy. This means a real estate agent will only get paid when they close a deal, and will thus not always have a “weekly paycheck”.

The listing agent (the person working with the seller) and the buyer’s agent usually split the total commission. The typical split is 50-50, but this can vary depending on a number of different factors.

If a house sells for $500,000 and the total commission is 6%, for example, the total commission would be $30,000. In a 50-50 split scenario, both the listing agent and the buyer’s agent would get $15,000.

Real estate agents usually work under a broker, who often receives a portion of their commissions. The split between the broker and the agent can vary widely. New agents might have a 50-50 split agreement with their broker while experienced agents earn additional commission (e.g., 70-30 or even 90-10 split in favor of the agent, etc.). In a 70-30 split from the aforementioned scenario, for instance, the agent would receive $10,500 and the broker would receive $4,500 of the $15,000 commission.

Note that these percentages can be negotiable and may vary based on the local market, the agent’s experience level, the level of service provided, and other factors.

Variable Expenses

Real estate agents incur numerous expenses that can affect their profitability. Here are the most common variable expenses:

• Licensing and Continuing Education Fees: In order to maintain their real estate licenses, agents must complete a certain amount of continuing education each year. The fees for these classes can add up quickly. Additionally, agents must pay to renew their license and also may pay membership dues to local, state, and national real estate associations
• Office Expenses: Some real estate agents work for brokerage firms that provide office space while others have to pay for their own. This also could include expenses for home office equipment, such as desks, chairs, printers, and other office supplies
• Marketing and Advertising Fees: This includes everything from business cards, print advertising, and direct mail campaigns to online ads on social media platforms and real estate websites. In addition, agents may host open houses that can incur costs for signage, refreshments, and promotional materials
• Technology Costs: In today’s digital world, agents often invest in real estate-specific software, customer relationship management (CRM) systems, and other online tools. They also may need to purchase and update hardware, such as laptops, smartphones, digital cameras, or tablets

Note that these costs can vary greatly, depending on the market in which an agent works, the price point of the homes they deal with, the agent’s business strategy, and other factors.

How to Become a Real Estate Agent in Arizona

To become a real estate agent in Arizona, you’ll need to meet a number of requirements and follow a certain process. Here’s a general, step-by-step guide to getting your real estate license:

1. Complete pre-licensing education. You must complete 90 hours of pre-licensing education from a state-approved real estate education provider.
2. Take — and pass — the state licensing exam. After completing your pre-licensing education, you can apply to take the state real estate exam. This is administered by Pearson VUE, a company that administers licensing exams for various professions. You’ll need to pass both the state and national portions of this exam.
3. Get fingerprinted and complete a background check. Arizona law requires all real estate license applicants to provide fingerprints and pass a background check.
4. Find a sponsoring broker. Before you can become a licensed real estate agent, you need to find a sponsoring broker. This is a real estate broker who’s willing to put your new license under their brokerage firm and help guide you through the beginning stages of your real estate career.
5. Apply for your license. Once you pass your exam and find a sponsoring broker, you can apply for your real estate salesperson license through the Arizona Department of Real Estate (ADRE).
6. Complete post-licensing education. If you’re a new licensee, the state requires you to complete a six-hour contract writing class before activating your license. You also must complete a 30-hour, post-licensing course within the first year after passing the state exam.

Getting a real estate license in Arizona is crucial because it provides legal authorization to represent buyers and sellers in property transactions. This ensures you comply with state real estate laws and promote professional and ethical services. It also opens up opportunities for a lucrative career in real estate within the state.