Real Estate Marketing Academy

Real Estate Broker Salaries [2019 State Guide]

By Colin Ryan

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Real Estate Broker Salaries

Real estate is often touted as one of the most lucrative professions, and real estate brokers are at the top of every transaction.

Like sales agents, real estate brokers are licensed to help people and organizations buy and sell homes, land, and commercial properties. But brokers also have the added responsibility of managing agents and taking legal responsibility for their transactions. Because of this, real estate broker salaries are among the highest in the country. In fact, real estate brokers are in the top 25% of all professions in terms of pay.

Read on to learn more about the factors that affect real estate broker salaries, as well as average salaries for brokers in each U.S. state.

 

 

What’s the Average Real Estate Broker Salary?

What’s the Average Real Estate Broker Salary?

Because real estate brokers typically get paid via commissions, and some only work part time, broker salaries can vary widely. For instance, while the top 10 percent of brokers in the U.S. make an average of $163,540 a year, the bottom 10 percent earn just $22,750. That’s below the poverty line for a family of four people.

That said, here is a range of national broker salary estimates from major employment websites and government agencies.

The average broker salary also depends on broker type and weekly hours. For instance, while managing brokers or broker-owners tend to make more money than associate brokers, they also work 50 hours a week on average, compared to 40 hours for associate brokers.

 

Real Estate Broker vs. Real Estate Agent Salary

You may be asking: Why should I become a real estate broker instead of an agent?

For starters, real estate brokers make more money on average than agents. According to the U.S. Bureau of Labor Statistics, the average salary of a real estate broker is $75,910. To put this in perspective, the average real estate agent salary is $59,630—that’s 20 percent lower.

In addition to pure salary, brokers have more options than agents in terms of how they can run their businesses and make money. In many states, for instance, a broker license also allows brokers to own and operate property management companies, which maintain and lease rental properties.

 

What factors affect real estate broker salaries?

There are multiple factors that determine how much money you can earn as a real estate broker.

  • Experience: New brokers who are just getting their firms started have to dedicate more time and resources to recruiting, building their client list, and marketing their business, which often means fewer transactions and less take-home pay. Meanwhile, veteran brokers tend have more listings, as well as more prestige and expertise in their local market.
  • Niche / Specialty: Real estate brokers who specialize in certain transaction or property types have the potential to earn higher salaries than more general practitioners. For instance, a recent survey by Real Estate Express found that the six most profitable real estate niches are:
    • Luxury Properties
    • Commercial Real Estate
    • Relocation Services
    • Foreign Investment
    • Investment Properties
    • Green and Eco-Friendly Properties
  • Business Size: Brokers with larger firms have more agents, which means more transactions to earn commissions from. On the other hand, a bigger staff and office also raises operating costs, which may cut into your broker pay.
  • Location: Finally, where you live and work is one of the most significant factors in determining your real estate broker salary. Location determines home prices and buyer demand, as well as other business costs. This is true at both the state and local level.
    • Real estate brokers have the highest average income in the following states: New York, Massachusetts, Maryland, California, and Connecticut. Brokers in these states make over $99,000 per year on average.
    • Real estate brokers have the lowest average income in the following states: Missouri, Michigan, Mississippi, Florida, and North Carolina. Brokers in these states make less than $86,000 per year on average.

For a more in-depth look at average real estate broker salaries for each U.S. state, jump to the “Real Estate Broker Salary by State” section of this guide.

 

Types of Real Estate Brokers

Types of Real Estate Brokers

Finally, your real estate broker salary may also depend on which kind of broker you are. Generally speaking, there are three real estate broker types:

  • Real Estate Broker-Owner: By law, every real estate firm must be led by a broker-owner. The broker-owner may be directly involved in day-to-day operations, or hire a managing broker and take a more hands-off approach to the business. Either way, he or she is legally responsible for all transactions that pass through the firm. According to the National Association of REALTORS®, about 33 percent of all brokers are sole owners of their firms.
  • Managing Real Estate Broker: Rather than owning a firm, some brokers choose to work under a broker-owner. These managing brokers oversee the day-to-day operations of the firm.
  • Associate Broker: Also known as broker associates, these types of brokers work under a managing broker. Some associate brokers choose to remain in sales roles similar to agents, while others step back to focus on particular aspects of the business, including technology, marketing, or training.

Each type of broker has different expenses that may have a significant impact on their net income. For instance, an associate broker who actively participates in transactions may have similar expenses as a typical agent (e.g. marketing and advertising, vehicle expenses), while broker-owners contend with more significant expenses (e.g. office lease, technology and recruiting costs) that have a major impact on their bottom line.

 

Real Estate Broker Salary by State

Real Estate Broker Salary by State

As we’ve discussed, real estate broker salaries can differ widely from place to place. Below, you’ll find salary averages for all 50 states, as well as Washington, D.C. and Puerto Rico.

Jump to your state to find out how much money real estate brokers in your area can make. (All data is provided by the U.S. Bureau of Labor Statistics, unless otherwise noted.)

 

Alabama

The average annual salary for a Real Estate Broker in Alabama is $49,540.*

The average annual salary for a Real Estate Agent in Alabama is $55,960.

 

Alaska

The average annual salary for a Real Estate Broker in Alaska is $74,320. The highest paying metropolitan area for Alaska real estate brokers is Anchorage, with an average salary of $74,360.

The average annual salary for a Real Estate Agent in Alaska is $71,030.

 

Arizona

The average annual salary for a Real Estate Broker in Arizona is $65,460. The highest paying metropolitan area for Arizona real estate brokers is Phoenix, with an average salary of $69,520.

The average annual salary for a Real Estate Agent in Arizona is $62,690.

 

Arkansas

The average annual salary for a Real Estate Broker in Arkansas is $62,440. The highest paying metropolitan area for Arkansas real estate brokers is Little Rock, with an average salary of $66,690.

The average annual salary for a Real Estate Agent in Arkansas is $41,660.

 

California

The average annual salary for a Real Estate Broker in California is $86,000. The highest paying metropolitan area for California real estate brokers is San Francisco, with an average salary of $103,720.

The average annual salary for a Real Estate Agent in California is $68,860.

Bonus resource: How to become a real estate broker in California

 

Colorado

The average annual salary for a Real Estate Broker in Colorado is $60,680. The highest paying metropolitan area for Colorado real estate brokers is Colorado Springs, with an average salary of $78,860.

The average annual salary for a Real Estate Agent in Colorado is $63,320.

 

Connecticut

The average annual salary for a Real Estate Broker in Connecticut is $101,930.

The average annual salary for a Real Estate Agent in Connecticut is $45,230.

 

Delaware

The average annual salary for a Real Estate Broker in Delaware is $76,560.

The average annual salary for a Real Estate Agent in Delaware is $46,670.

 

District of Columbia

The average annual salary for a Real Estate Broker in the District of Columbia is $74,740.

The average annual salary for a Real Estate Agent in the District of Columbia is $56,460.

 

Florida

The average annual salary for a Real Estate Broker in Florida is $65,230. The highest paying metropolitan area for Florida real estate brokers is Pensacola, with an average salary of $95,460.

The average annual salary for a Real Estate Agent in Florida is $57,520.

Bonus resource: How to become a real estate broker in Florida

 

Georgia

The average annual salary for a Real Estate Broker in Georgia is $60,130. The highest paying metropolitan area for Georgia real estate brokers is Atlanta, with an average salary of $58,280.

The average annual salary for a Real Estate Agent in Georgia is $46,220.

 

Hawaii

The average annual salary for a Real Estate Broker in Hawaii is $74,650. The highest paying metropolitan area for Hawaii real estate brokers is Honolulu, with an average salary of $101,070.

The average annual salary for a Real Estate Agent in Hawaii is $72,470.

 

Idaho

The average annual salary for a Real Estate Broker in Idaho is $47,490. The highest paying metropolitan area for Idaho real estate brokers is Boise City, with an average salary of $50,940.

The average annual salary for a Real Estate Agent in Idaho is $55,790.

 

Illinois

The average annual salary for a Real Estate Broker in Illinois is $103,430. The highest paying metropolitan area for Illinois real estate brokers is Chicago, with an average salary of $103,290.

The average annual salary for a Real Estate Agent in Illinois is $59,010.

Bonus resource: How to become a real estate broker in Illinois

 

Indiana

The average annual salary for a Real Estate Broker in Indiana is $83,090. The highest paying metropolitan area for Indiana real estate brokers is Indianapolis, with an average salary of $108,920.

The average annual salary for a Real Estate Agent in Indiana is $43,230.

 

Iowa

The average annual salary for a Real Estate Broker in Iowa is $65,030. The highest paying metropolitan area for Iowa real estate brokers is Des Moines, with an average salary of $52,120.

The average annual salary for a Real Estate Agent in Iowa is $49,900.

 

Kansas

The average annual salary for a Real Estate Broker in Kansas is $56,040.

The average annual salary for a Real Estate Agent in Kansas is $46,640.

 

Kentucky

The average annual salary for a Real Estate Broker in Kentucky is $61,120. The highest paying metropolitan area for Kentucky real estate brokers is Louisville, with an average salary of $54,980.

The average annual salary for a Real Estate Agent in Kentucky is $47,220.

 

Louisiana

The average annual salary for a Real Estate Broker in Louisiana is $47,260.* The highest paying metropolitan area for Louisiana real estate brokers is Shreveport, with an average salary of $52,100.

The average annual salary for a Real Estate Agent in Louisiana is $54,100.

 

Maine

The average annual salary for a Real Estate Broker in Maine is $72,150.

The average annual salary for a Real Estate Agent in Maine is $60,220.

 

Maryland

The average annual salary for a Real Estate Broker in Maryland is $96,030. The highest paying metropolitan area for Maryland real estate brokers is Baltimore, with an average salary of $91,550.

The average annual salary for a Real Estate Agent in Maryland is $57,470.

 

Massachusetts

The average annual salary for a Real Estate Broker in Massachusetts is $82,270.* The highest paying metropolitan area for Massachusetts real estate brokers is Boston, with an average salary of $121,500.

The average annual salary for a Real Estate Agent in Massachusetts is $61,670.

 

Michigan

The average annual salary for a Real Estate Broker in Michigan is $72,390. The highest paying metropolitan area for Michigan real estate brokers is Detroit, with an average salary of $85,510.

The average annual salary for a Real Estate Agent in Michigan is $46,880.

 

Minnesota

The average annual salary for a Real Estate Broker in Minnesota is $60,860. The highest paying metropolitan area for Minnesota real estate brokers is Minneapolis-St.Paul, with an average salary of $62,760.

The average annual salary for a Real Estate Agent in Minnesota is $48,250.

 

Mississippi

The average annual salary for a Real Estate Broker in Mississippi is $65,430.

The average annual salary for a Real Estate Agent in Mississippi is $50,110.

 

Missouri

The average annual salary for a Real Estate Broker in Missouri is $59,780. The highest paying metropolitan area for Missouri real estate brokers is Kansas City, with an average salary of $52,880.

The average annual salary for a Real Estate Agent in Missouri is $50,400.

 

Montana

The average annual salary for a Real Estate Broker in Montana is $49,900.*

The average annual salary for a Real Estate Agent in Montana is $42,010.

 

Nebraska

The average annual salary for a Real Estate Broker in Nebraska is $64,300. The highest paying metropolitan area for Nebraska real estate brokers is Omaha, with an average salary of $64,760.

The average annual salary for a Real Estate Agent in Nebraska is $46,340.

 

Nevada

The average annual salary for a Real Estate Broker in Nevada is $88,460. The highest paying metropolitan area for Nevada real estate brokers is Las Vegas, with an average salary of $99,400.

The average annual salary for a Real Estate Agent in Nevada is $59,240.

 

New Hampshire

The average annual salary for a Real Estate Broker in New Hampshire is $70,180. The highest paying metropolitan area for New Hampshire real estate brokers is Portsmouth, with an average salary of $78,010.

The average annual salary for a Real Estate Agent in New Hampshire is $48,530.

 

New Jersey

The average annual salary for a Real Estate Broker in New Jersey is $96,240.* The highest paying metropolitan area for New Jersey real estate brokers is New York-Newark-Jersey City, with an average salary of $115,950.

The average annual salary for a Real Estate Agent in New Jersey is $58,690.

 

New Mexico

The average annual salary for a Real Estate Broker in New Mexico is $98,350.

The average annual salary for a Real Estate Agent in New Mexico is $53,240.

 

New York

The average annual salary for a Real Estate Broker in New York is $85,190. The highest paying metropolitan area for New York real estate brokers is New York-Newark-Jersey City, with an average salary of $115,950.

The average annual salary for a Real Estate Agent in New York is $102,310.

Bonus resource: How to become a real estate broker in New York

 

North Carolina

The average annual salary for a Real Estate Broker in North Carolina is $64,740. The highest paying metropolitan area for North Carolina real estate brokers is Charlotte, with an average salary of $81,860

The average annual salary for a Real Estate Agent in North Carolina is $61,580.

 

North Dakota

The average annual salary for a Real Estate Broker in North Dakota is $70,130.

The average annual salary for a Real Estate Agent in North Dakota is $57,060.

 

Ohio

The average annual salary for a Real Estate Broker in Ohio is $75,080. The highest paying metropolitan area for Ohio real estate brokers is Cincinnati, with an average salary of $82,470.

The average annual salary for a Real Estate Agent in Ohio is $41,650.

 

Oklahoma

The average annual salary for a Real Estate Broker in Oklahoma is $61,410. The highest paying metropolitan area for Oklahoma real estate brokers is Tulsa, with an average salary of $82,470.

The average annual salary for a Real Estate Agent in Oklahoma is $49,380.

 

Oregon

The average annual salary for a Real Estate Broker in Oregon is $79,490. The highest paying metropolitan area for Oregon real estate brokers is Portland, with an average salary of $90,950.

The average annual salary for a Real Estate Agent in Oregon is $55,500.

 

Pennsylvania

The average annual salary for a Real Estate Broker in Pennsylvania is $93,486.** The highest paying metropolitan area for Pennsylvania real estate brokers is Harrisburg, with an average salary of $90,710.

The average annual salary for a Real Estate Agent in Pennsylvania is $66,500.

Bonus resource: How to become a real estate broker in Pennsylvania

 

Puerto Rico

The average annual salary for a Real Estate Broker in Puerto Rico is $37,730. The highest paying metropolitan area for Puerto Rico real estate brokers is San Juan, with an average salary of $29,430.

The average annual salary for a Real Estate Agent in Puerto Rico is $59,790.

 

Rhode Island

The average annual salary for a Real Estate Broker in Rhode Island is $93,949.**

The average annual salary for a Real Estate Agent in Rhode Island is $70,450.

 

South Carolina

The average annual salary for a Real Estate Broker in South Carolina is $71,360. The highest paying metropolitan area for South Carolina real estate brokers is Greenville, with an average salary of $82,460.

The average annual salary for a Real Estate Agent in South Carolina is $52,070.

 

South Dakota

The average annual salary for a Real Estate Broker in South Dakota is $93,199.**

The average annual salary for a Real Estate Agent in South Dakota is $57,110.

 

Tennessee

The average annual salary for a Real Estate Broker in Tennessee is $71,850. The highest paying metropolitan area for Tennessee real estate brokers is Nashville, with an average salary of $90,410.

The average annual salary for a Real Estate Agent in Tennessee is $45,960.

 

Texas

The average annual salary for a Real Estate Broker in Texas is $96,630. The highest paying metropolitan area for Texas real estate brokers is Houston, with an average salary of $103,950.

The average annual salary for a Real Estate Agent in Texas is $72,480.

Bonus resource: How to become a real estate broker in Texas

 

Utah

The average annual salary for a Real Estate Broker in Utah is $49,440.

The average annual salary for a Real Estate Agent in Utah is $62,050.

 

Vermont

The average annual salary for a Real Estate Broker in Vermont is $62,410.

The average annual salary for a Real Estate Agent in Vermont is $47,990.

 

Virginia

The average annual salary for a Real Estate Broker in Virginia is $85,690. The highest paying metropolitan area for Virginia real estate brokers is Richmond, with an average salary of $94,660.

The average annual salary for a Real Estate Agent in Virginia is $64,290.

 

Washington

The average annual salary for a Real Estate Broker in Washington is $69,280. The highest paying metropolitan area for Washington real estate brokers is Bremerton, with an average salary of $107,760.

The average annual salary for a Real Estate Agent in Washington is $59,590.

 

West Virginia

The average annual salary for a Real Estate Broker in West Virginia is $46,430.

The average annual salary for a Real Estate Agent in West Virginia is $45,220.

 

Wisconsin

The average annual salary for a Real Estate Broker in Wisconsin is $97,970. The highest paying metropolitan area for Wisconsin real estate brokers is Green Bay, with an average salary of $110,820.

The average annual salary for a Real Estate Agent in Wisconsin is $54,820.

 

Wyoming

The average annual salary for a Real Estate Broker in Wyoming is $62,540.*

The average annual salary for a Real Estate Agent in Wyoming is $64,500.

* Data provided by Recruiter.com

** Data provided by ZipRecruiter.com

 

How to Become a Real Estate Broker [Step-By-Step Guide]

Conclusion

Many real estate brokerages fail, and a high real estate broker salary is not guaranteed. Nevertheless, becoming a broker can give you the opportunity to increase your take-home pay while expanding your professional horizons.

Ready to get your real estate broker license and start earning more money? Placester’s step-by-step guide to becoming a real estate broker explains the entire process and offers expert tips for starting and building a successful brokerage.

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