Becoming a real estate broker can be fulfilling and lucrative. As a licensed broker, you are your own boss with more ownership, control, and earning potential.
However, your income depends on experience, location, team, property type, and the market. To help you understand this career path, we’ve answered key questions in this short guide.
How much do real estate brokers make on average?
GlassDoor reports that the average annual salary of real estate broker-owners in the United States is $220,507. This comprises a $106,730 base pay and $113,776 in commissions, and bonuses. As a real estate agent looking to level up, this might be the opportunity you’ve been seeking.
How much do real estate brokers make by state?
Here’s a breakdown of the average salary for real estate brokers by state, according to Glassdoor. Again, additional pay may include bonuses, commission, tips, and profit sharing.
| State | Average Yearly Base Salary | Average Yearly Additional Pay |
| Alabama | $83,725 | $65,454 |
| Alaska | $91,966 | $65,434 |
| Arizona | $101,837 | $78,679 |
| Arkansas | $83,123 | $58,7871 |
| California | $107,243 | $73,106 |
| Colorado | $93,242 | $66,741 |
| Connecticut | $90,446 | $58,773 |
| Delaware | $89,455 | $65,489 |
| Florida | $87,127 | $67,033 |
| Georgia | $87,257 | $70,814 |
| Hawaii | $94,341 | $71,298 |
| Idaho | $91,686 | $64,225 |
| Illinois | $92,992 | $68,280 |
| Indiana | $86,171 | $63,450 |
| Iowa | $98,230 | $69,207 |
| Kansas | $85,710 | $62,587 |
| Kentucky | $91,801 | $52,970 |
| Louisiana | $82,636 | $58,391 |
| Maine | $87,762 | $59,429 |
| Maryland | $92,221 | $63,280 |
| Massachusetts | $95,151 | $69,325 |
| Michigan | $84,898 | $60,451 |
| Minnesota | $92,228 | $63,414 |
| Mississippi | $81,967 | $59,064 |
| Missouri | $87,813 | $63,957 |
| Montana | $88,908 | $66,190 |
| Nebraska | $88,734 | $61,283 |
| Nevada | $101,838 | $75,092 |
| New Hampshire | $90,942 | $66,417 |
| New Jersey | $98,421 | $63,998 |
| New Mexico | $84,936 | $70,995 |
| New York | $102,723 | $68,842 |
| North Carolina | $88,425 | $70,943 |
| North Dakota | $89,364 | $61,744 |
| Ohio | $88,397 | $64,249 |
| Oklahoma | $82,437 | $57,597 |
| Oregon | $94,100 | $71,311 |
| Pennsylvania | $88,654 | $60,673 |
| Rhode Island | $91,285 | $63,528 |
| South Carolina | $88,817 | $68,010 |
| South Dakota | $88,327 | $57,886 |
| Tennessee | $87,412 | $68,538 |
| Texas | $88,028 | $61,650 |
| Utah | $92,108 | $72,538 |
| Vermont | $89,106 | $61,730 |
| Virginia | $93,325 | $70,028 |
| Washington | $104,054 | $60,245 |
| West Virginia | $83,697 | $62,888 |
| Wisconsin | $89,218 | $55,424 |
| Wyoming | $83,958 | $56,477 |
The highest-paying states for real estate brokers
According to GlassDoor, the top five states with the highest real estate broker salaries are New York, California, Nevada, Iowa, and Arizona. Commissions can vary based on city, market, property type, sales volume, and experience levels.
Remember, though these states offer the highest average pay for real estate brokers, these states also rank high for typicalcost of living. For instance, while California offers high earnings, it also has the highest living costs. If you’re considering a move to one of these states, start by talking to brokers in your target area to understand the cost of living to make informed decisions. Also, be aware of different licensing requirements across states.
The lowest-paying states for real estate brokers
As for the states with the lowest real estate broker salary on GlassDoor, Mississippi comes in last, closely followed by Oklahoma and Arkansas. These states are known for their lower housing prices, which directly impact the commission-based income of real estate brokers.
Do brokers make money from agents?
Yes, a broker makes some of their money from agents.
Typically, a broker’s income comes from three places: their base salary, the commissions they earn from directly representing buyers and sellers, and a portion of the commissions earned by the agents the broker manages. The portion of a broker’s income that comes from their agents’ commissions is highly variable, and depends largely on the agent’s contract with the brokerage.
It’s also important to note the important difference between a real estate broker and a real estatebroker-owner. A broker-owner owns the brokerage entity, which means that they get the entire portion of the agent commission. A broker (who isn’t an owner) has to split that agent portion with their broker-owner.
Finally, don’t forget that income from agents doesn’t (usually) go into a broker’s pocket; this is the revenue they use to operate the business. Agent revenue is the main driver behind rent, utilties, technology fees, and more.
How much do real estate brokers make compared to agents?
Real estate brokers tend to make more money than agents working in their brokerage, but not all the time. Remember, brokers are paid a base salary for managing the brokerage business, as well as paid a portion of each of the commissions earned by the agents in the firm.
However, that portion of agent commissions isn’t unlimited, usually capped at anywhere between $15,000 and $30,000 (in most markets) per year. This means that from a brokerage with a $20,000 annual commission cap, a broker can earn a maximum of $20,000 per year from each of those agents, assuming they do enough business to meet that cap. For a brokerage with, say, 10 agents, this would be a maximum revenue of $200,000.
An agent, on the other hand, has no cap on what they can earn; they get paid for every contract they close. So, while not something that happens often, there are years in many brokerages where agentsout-earn their brokers.
Real estate broker salary frequently asked questions
We’ve scoured the internet to come up with the most frequently asked questions about real estate brokers and their salaries. Here are the most popular questions and their answers.
What is the highest-paid type of broker?
In an industry where commissions are king, the highest earners typically engage in high-value transactions. It is no surprise that luxury real estate brokers are the leaders in this scenario. After all, the wealthy clientele they cater to have the financial capacity to generate large commissions for brokers. Additionally, abroker-owner will make more than a standard real estate broker, making the luxury real estate broker-owner the highest paid of all types of brokers.
How much do real estate brokers make per sale?
As discussed earlier, commissions are a huge part of a real estate broker’s salary. In 2023, the US median price for a home was $495,100, translating into an earning of approximately $15,000 per transaction in gross commission income. Depending on how that commission is split and whether a broker is acting on behalf of a client or just supervising the agent doing so, the amount of this commission a broker receives will vary.
How much do real estate brokers make per hour?
In 2023, the hourly breakdown of a real estate broker’s salary varied significantly, with a median rate of $41 per hour, according to ZipRecruiter. However, this figure can skyrocket depending on the location and property types serviced. For instance, those specializing in luxury real estate in high-demand areas like New York can earn upwards of $60 or even $100 per hour.
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