How Much Do Real Estate Brokers Make?
If you’re interested in a career in real estate, you’ve probably heard about the flexibility, high income, and independence that this vertical allows. No role allows you to cash in on these benefits more than working as a real estate broker. A real estate broker is typically someone who’s worked as an agent for a number of years, then decides to take their career to the next level with additional education. After passing their broker licensing exam, real estate brokers unlock more responsibilities and even greater perks.
Most real estate brokers earn more than agents simply because they are the ones who employ the agents. They also frequently own their brokerage firms, which allows them to take a sizable cut of all home sale commissions enacted by their real estate agents.
With all of this said, you may be wondering: How much do real estate brokers make?
Real Estate Broker Salaries
According to the Bureau of Labor Statistics, the median annual salary of a real estate broker is $50,730. The average real estate broker salary is $68,256 annually. According to May 2019 figures, the Bureau of Labor Statistics has brokers making $59,720 per year compared to $48,930 for agents.
Not only do brokers typically out-earn real estate agents in terms of annual salary, but they also earn a commission on all homes sold under their brokerage. All brokers have a right to take part of these commissions since they own the brokerage firm and support their real estate agents. Your job as a broker is to take on capital spend in regards to marketing and all other operational costs. These fees can become expensive, making commissions a necessary part of your salary.
Broker income varies depending on your experience levels, the size of your brokerage, and your location. We’ll delve into each of these factors within this guide.
How Are Real Estate Brokers Paid?
The payment system for brokers often hinges on commissions since that is where the bulk of their money is made. That said, the average real estate broker salary does not come entirely from commissions.
Some brokers charge monthly or flat fees for each home seller. These fees are outlined in the contract between the broker and the seller. Since brokers are responsible for determining a client's home’s market value, listing the property, showing it to potential buyers, and assisting in the offer process, you can see why they are paid more than a real estate agent.
Agreements are also made between the agent and broker regarding how much each earns from a commission. Most agents receive a 5-6% commission that they have to share with the listing agent, the broker, and the buyer's broker.
Did You Know?
More than 65% of REALTORS® are licensed as sales agents, 22% hold broker licenses, and 15% are licensed as broker associates.
Average Broker Salary By State
We’ve compiled a list of the average broker salary by state. Find your state in the list below to learn how much you could earn as a real estate broker.
- Alabama: $95,478 per year
- Alaska: $96,093 per year
- Arizona: $101,344 per year
- Arkansas: $83,319 per year
- California: $90,175 per year
- Colorado: $88,621 per year
- Connecticut: $99,583 per year
- Delaware: $88,228 per year
- Florida: $92,139 per year
- Georgia: $97,762 per year
- Hawaii: $101,259 per year
- Idaho: $84,435 per year
- Illinois: $82,867 per year
- Indiana: $100,695 per year
- Iowa: $91,122 per year
- Kansas: $90,544 per year
- Kentucky: $90,992 per year
- Louisiana: $93,197 per year
- Maine: $84,072 per year
- Maryland: $94,377 per year
- Massachusetts: $103,413 per year
- Michigan: $83,138 per year
- Minnesota: $96,101 per year
- Mississippi: $84,845 per year
- Missouri: $81,263 per year
- Montana: $102,398 per year
- Nebraska: $92,790 per year
- Nevada: $95,336 per year
- New Hampshire: $95,818 per year
- New Jersey: $100,482 per year
- New Mexico: $91,812 per year
- New York: $99,296 per year
- North Carolina: $75,695 per year
- North Dakota: $95,780 per year
- Ohio: $95,604 per year
- Oklahoma: $86,241 per year
- Oregon: $91,695 per year
- Pennsylvania: $85,897 per year
- Rhode Island: $97,302 per year
- South Carolina: $88,828 per year
- South Dakota: $92,983 per year
- Tennessee: $96,307 per year
- Texas: $81,511 per year
- Utah: $93,895 per year
- Vermont: $90,083 per year
- Virginia: $91,574 per year
- Washington: $99,467 per year
- West Virginia: $86,315 per year
- Wisconsin: $96,561per year
- Wyoming: $108,669 per year