Arkansas real estate commission rates are an average of 5.72% of a property’s purchase price, according to a 2024 survey conducted by FastExpert. This is somewhat higher than the average real estate commission in the U.S., which stands at 5.57%. If you aspire to become a real estate agent in the beautiful state of Arkansas, this information can help you understand how many properties at a specific price point you need to sell to achieve your desired income.
Keep reading as we guide you on how to calculate real estate commissions in Arkansas. We’ll explain how real estate commissions are determined and who is responsible for paying them, and then we’ll provide the average real estate commission in Arkansas’ ten most populated cities. We’ll also discuss how the proposed National Association of REALTORS® settlement may affect the salary of real estate agents.
How Real Estate Agent Commission Works in Arkansas
Most real estate agents do not earn a regular salary; instead, they work solely on commission. Commission-based compensation for real estate agents has been the norm since the 1950s. However, some anticipate changes to this structure, particularly for buyer’s agents, due to the recent NAR lawsuit.
Despite potential changes to commissions in the Arkansas market in the coming months, real estate agents will remain in high demand. And the more transactions you oversee, the more money you will earn.
Related: How Do REALTORS Get Paid? What Every Agent Needs to Know!
How is the real estate commission in Arkansas calculated?
Typically, seller’s agents agree to provide services to their clients for a set commission rate, which is often shared with the buyer’s agent. Once the transaction is complete, the commission rate is multiplied by the property sale price to determine the earnings for real estate professionals.
However, this system may change. Seller’s agents can no longer advertise the buyer’s agent commission on an MLS. They may still share their commissions with agents who find buyers for their listings, or the seller may agree to compensate the buyer’s agent directly. In some cases, a buyer’s agent may work for a flat fee paid by the buyer.
Real estate agents following the traditional structure earn a commission based on the property’s sale price. According to Zillow, the average home value in Arkansas is currently $207,880. Since Arkansas’ average negotiated commission rate is 5.72%, real estate professionals will receive $11,891 for overseeing the average transaction.
Who pays the real estate commission in Arkansas?
In Arkansas, the seller typically pays the real estate commission. However, the seller might ask for a higher price for the property, knowing that part of the sale’s profits will go to the real estate agents. This fee structure may change due to the recent NAR settlement, leading to more buyer agents being paid a flat fee (or percentage commission) directly by their buyer clients.
Does the real estate commission rate in Arkansas fluctuate over time?
Despite recent headlines and increased competition from online real estate companies, the real estate commission rates in Arkansas and across the U.S. have remained relatively steady at around 6%. Real estate commission rates have always been negotiable and are expected to remain so for the foreseeable future.
Average Real Estate Commission Rate in Arkansas
The average real estate commission rate in Arkansas is 5.72%.
According to data collected by Colibri Real Estate, the average income of a real estate agent in Arkansas is $111,321.
Average Arkansas real estate commission rate by city
Below is the average home value in Arkansas’ ten most populated cities. Based on a 5.72% commission rate, here’s how much real estate professionals earn by selling an average Arkansas residence.
Average Real Estate Commission for 10 Arkansas Cities
| City | Average Home Value | 5.8% Real Estate Commission |
|---|---|---|
| Little Rock, AR | $213,834 | $12,231 |
| Fayetteville, AR | $356,151 | $20,372 |
| Fort Smith, AR | $178,860 | $10,231 |
| Springdale, AR | $312,740 | $17,889 |
| Jonesboro, AR | $215,957 | $12,353 |
| Rogers, AR | $349,712 | $20,004 |
| Conway, AR | $237,837 | $13,604 |
| North Little Rock, AR | $153,879 | $8,802 |
| Bentonville, AR | $450,286 | $25,756 |
| Pine Bluff, AR | $82,024 | $4,692 |
As mentioned earlier, this 5.72% commission is typically split between the buyer’s and seller’s agents and their brokerages. Real estate agents must also pay taxes on those earnings.
Average Arkansas real estate commission rate by property type
So far, we have focused on residential real estate commissions in AR. However, some real estate agents focus on commercial real estate – or another niche.
Some commercial real estate transactions use the same 6% commission rate, while others employ a graduated structure (e.g., 5% up to $1M, 4% for $1M-$5M). Additionally, some commercial real estate agents in Arkansas negotiate a flat fee. Commercial real estate commissions vary depending on the property’s location, market conditions, and the complexity of the deal.
If you focus on commercial real estate in Arkansas, take as many continuing education courses and specialized training as possible to help you better serve this niche.
How Is the Commission Divided Between Agents in Arkansas?
The 5.72% real estate commission is typically shared between the buyer’s and seller’s agents – and their respective brokerages. Here’s an example of what this commission split may look like for an average transaction.
Example of How Commission Splits Work in Arkansas Real Estate for a $207,880 Property
| Item | Amount |
|---|---|
| Sale Price of home | $207,880 |
| Total commission paid to real estate professionals | $11,891 |
| Seller’s agent commission (based on a 50/50 split) | $2,973 |
| Seller’s agent’s brokerage commission | $2,973 |
| Buyer’s agent commission (based on a 50/50 split) | $2,973 |
| Buyer’s agent’s brokerage commission | $2,973 |
We hope these numbers give you some understanding of how much you may expect to earn working as a real estate agent in Arkansas.
Being a real estate agent is a rewarding full-time profession or side gig with unlimited income potential. The sooner you begin the licensing process, the quicker you can start earning these impressive commissions. Sign up today for your pre-licensing courses with Colibri Real Estate School.
Colibri Real Estate’s Arkansas real estate classes are convenient and affordable. Our online, at-your-own-pace courses allow you to complete your studies anytime – and anywhere. You’ll receive a quality education designed by local experts that will prepare you to become a top-tier real estate agent in Arkansas.
Key Takeaways
- The average real estate commission rate in Arkansas is 5.72% of the property’s purchase price, slightly higher than the national average of 5.57%.
- With an average home value of $207,880 in Arkansas, real estate agents typically earn about $11,891 per transaction. This amount is split between the buyer’s and seller’s agents and their brokerages.
- In Arkansas, the seller usually pays the commission, although the fee structure may change due to a recent National Association of REALTORS® settlement. This change could lead to buyer agents being paid directly by their clients, possibly as a flat fee.
Sources:
1. “Arkansas Home Prices & Home Values.” July 9, 2024. Zillow. Arkansas Home Prices & Home Values | Zillow
2. Matarazzo, Steph. “Average Real Estate Agent Commissions by State (2024 Survey).” FastExpert. January 23, 2024. https://www.fastexpert.com/blog/real-estate-agent-commissions-by-state/.
