The Average Real Estate Broker Salary in Each State (2024)

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?

The Average Real Estate Broker Salary in Each State (1)

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.

Grow your business as an agent or broker

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The Average Real Estate Broker Salary in Each State (2024)

FAQs

The Average Real Estate Broker Salary in Each State? ›

The average salary for Real Estate Broker is ₹3,81,000 per month in the India. The average additional cash compensation for a Real Estate Broker in the India is ₹3,60,000, with a range from ₹41,667 - ₹6,00,000.

How much do most real estate brokers make? ›

Real Estate Agent Broker Salary in Los Angeles, CA
Annual SalaryHourly Wage
Top Earners$138,460$67
75th Percentile$107,800$52
Average$85,332$41
25th Percentile$64,600$31

What type of broker gets paid the most? ›

High Paying Brokerage Professional Jobs
  • Broker. Salary range: $45,000-$131,500 per year. ...
  • Commodity Broker. Salary range: $97,500-$112,500 per year. ...
  • Energy Broker. Salary range: $60,500-$78,000 per year. ...
  • Associate Broker. Salary range: $44,000-$73,500 per year. ...
  • Stock Broker. ...
  • Broker Assistant. ...
  • Brokerage Clerk.

How much does a broker earn? ›

The average salary for Real Estate Broker is ₹3,81,000 per month in the India. The average additional cash compensation for a Real Estate Broker in the India is ₹3,60,000, with a range from ₹41,667 - ₹6,00,000.

Why do real estate brokers make so much money? ›

Realtors earn more from quick sales, high transaction prices, and maximum commission. They have incentives to share new listings with a few colleagues in advance, while steering buyers away from homes with discounted commissions.

What state pays real estate brokers the most? ›

The Average Real Estate Broker Salary in Each State (2024)
  • GlassDoor reports that the average annual salary of real estate broker-owners in the United States is $220,507. ...
  • According to GlassDoor, the top five states with the highest real estate broker salaries are New York, California, Nevada, Iowa, and Arizona.
Feb 8, 2024

Can you become a millionaire as a real estate broker? ›

It can be done. In fact, it has been done. But it doesn't happen by luck or accident. This is the first in a series of articles detailing how you, as a newly licensed agent, could set yourself up to be successful enough to to make $1 million in your first year.

What is the highest paid job in real estate? ›

Top 10 Highest Paying Real Estate Jobs (Inc Salaries)
  • Real Estate Broker. ...
  • Commercial Real Estate Sales Agent. ...
  • Real Estate Attorney. ...
  • Residential Real Estate Sales Agent. ...
  • Real Estate Developer. ...
  • Mortgage Loan Officer. ...
  • Real Estate Asset Manager. ...
  • Commercial Leasing Manager.

What is the monthly income of a broker? ›

What are Top 10 Highest Paying Cities for Real Estate Broker Jobs
CityAnnual SalaryMonthly Pay
Santa Cruz, CA$119,613$9,967
Redwood City, CA$119,601$9,966
Seaside, CA$119,391$9,949
Concord, CA$118,327$9,860
6 more rows

Do brokers make millions? ›

Myth #1: All Stockbrokers Make Millions

In fact, some lose a lot of money through their trading activities. The majority of companies pay their employees a base salary plus commission on the trades they make. New traders and trainees generally earn an annual salary before they start to reel in a suitable client base.

Is broker a stressful job? ›

The brokerage industry can be rewarding, but also demanding and stressful.

Are brokers worth it? ›

Working with a mortgage broker can potentially save you time, effort, and money. A mortgage broker may have better and more access to lenders than you have. However, a broker's interests may not be aligned with your own. You may get a better deal on a loan by dealing directly with lenders.

How long does it take to make money as a broker? ›

Now that you have a real estate license, it may take three to six months to start making money from commissions.

Why a broker is better than an agent? ›

The reason that brokers can work independently or supervise other agents is that they're allowed to handle certain financial and legal steps in the transaction process that agents cannot. Brokers can move money in and out of escrow accounts and mediate legal disputes that arise from the transaction.

Is being a real estate broker stressful? ›

High-pressure environment. As a real estate agent, you're under a lot of pressure to get your clients the best deal. There is no room for error; if you don't close the sale and get them their dream home, it's going to be on your shoulders.

What percentage do most realtors take? ›

What percent commission do most real estate agents charge? The typical commission under the current model has been somewhere between 5 and 6 percent of a home's purchase price, which is then split evenly between the agent representing the buyer and the agent representing the seller.

What is the highest paid type of real estate agent? ›

High Paying Real Estate Agent Jobs
  • Real Estate Officer. Salary range: $82,500-$137,000 per year. ...
  • Realtor. Salary range: $79,500-$125,000 per year. ...
  • Real Estate Broker. ...
  • Commercial Real Estate Agent. ...
  • Real Estate Rep. ...
  • Licensed Real Estate Agent. ...
  • Commercial Real Estate Assistant. ...
  • Property Consultant.

What percentage do most brokers take from agents? ›

A common commission split gives 60% to the agent and 40% to the broker, but the split could be 50/50, 60/40, 70/30, or whatever ratio the agent and the broker agree on. More experienced and top-producing agents tend to receive higher commissions.

How do brokers typically make money? ›

How Does a Brokerage Firm Make Money? Generally, brokerages make money by charging various fees and commissions on transactions they facilitate and services they provide. The online broker who offers free stock trades receives fees for other services, plus fees from the exchanges.

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