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.

StateAverage Yearly Base SalaryAverage Yearly Additional Pay
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
Rhode Island$91,285$63,528
South Carolina$88,817$68,010
South Dakota$88,327$57,886
West Virginia$83,697$62,888

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)


The Average Real Estate Broker Salary in Each State? ›

Income Data

The average Real Estate Sales Agent salary in the United States is $46,014 as of January 26, 2024, but the range typically falls between $44,951 and $58,528. The median gross income of REALTORS® increased to $56,400 from $54,300 in 2021.

What does the average realtor make in the US? ›

Income Data

The average Real Estate Sales Agent salary in the United States is $46,014 as of January 26, 2024, but the range typically falls between $44,951 and $58,528. The median gross income of REALTORS® increased to $56,400 from $54,300 in 2021.

What state pays real estate brokers the most? ›

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.

Who is the richest real estate broker? ›

Donald Bren takes the crown as the wealthiest real estate mogul globally, boasting a staggering net worth of $16.2 billion as of August 2022. His fortune skyrocketed by nearly two billion dollars in just two years.

How much does a realtor make in Texas? ›

While ZipRecruiter is seeing salaries as high as $137,886 and as low as $27,950, the majority of Licensed Real Estate Agent salaries currently range between $62,400 (25th percentile) to $105,300 (75th percentile) with top earners (90th percentile) making $119,717 annually in Texas.

What do most realtors make a year? ›

On average, real estate agents make $84,459 per year according to salaries reported by Indeed users. Was this answer helpful?

Do brokers still make money? ›

Brokers that do not charge commissions make money off investor assets in other ways — most often by earning interest on uninvested cash in investor accounts. Most investment accounts hold a small amount of cash, and a broker sweeps that cash into a deposit account that earns interest.

Why do brokers make so much money? ›

Unlike agents, who might receive direct incentives from their affiliated insurers, brokers earn primarily through commissions and fees based on the policies they secure for clients.

How do brokers make so much 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.

Is broker a stressful job? ›

You may face long hours, tight deadlines, high expectations, and intense competition. If you don't manage your stress and prevent burnout, you may suffer from physical, mental, and emotional health issues, as well as lower performance and satisfaction.

Is being a broker a good job? ›

Stockbrokers can earn high salaries throughout their careers and achieve. One of the major benefits of this job is that you earn commissions and bonuses that can significantly enhance your base salary.

What does a broker do for a living? ›

A broker is a person that facilitates transactions between traders, sellers, or buyers. Think of a broker as a middleman who ensures transactions can run smoothly and that each party has the necessary information. Brokers exist in many industries, including insurance, real estate, finance, and trade.

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 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 is agreed by the agent and the broker. It is common for more experienced and top-producing agents to receive a larger percentage of the commission.

How much do top 1 real estate agents make? ›

Each real estate office sets its own standards for top producers, but it's safe to say that a top producer would have to sell at least one home per month to qualify. Top producers earn around $112,610 a year to start, according to the BLS. 1 Mega-stars could earn $500,000 per year and up.

Is being a real estate broker stressful? ›

Amid the allure of financial rewards and flexible work hours, real estate agents grapple with a unique set of challenges that can be mentally taxing. Perhaps one of the most prominent stress factors is the arduous process of finding and retaining clients.


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