The Average Real Estate Broker Salary for Every State

Figuring out how much money a typical real estate broker makes is like trying to catch lightning in a bottle. It’s even harder than nailing down an agent’s average salary. But we’ve got some great tools and information to break it all down and give us real estate broker salaries for every state. And we bet the numbers might just surprise you.

But before that, let’s clear up a few things. When we’re talking about a broker, we mean someone who is licensed at a higher level than a real estate salesperson. This can be confusing because, in some states, a salesperson is called a broker. If you live in one of those areas, you might refer to those with an advanced real estate license as employing brokers, managing brokers, associate brokers, or brokers-in-charge.

The second point of confusion is that it’s rare in real estate to earn a salary. As you probably already know, most real estate professionals are independent contractors who make a living from commissions on property sales. When we use the term “salary” in this article, we’re referring to the amount brokers can earn through commissions, splits, brokerage revenue, and fees.

All clear? OK, let’s dive in and take a closer look at the broker’s role. Then we’ll use The Close’s salary database to explore how much brokers tend to make, state by state.

Real Estate Broker FAQs

What’s the difference between a real estate agent & broker?

Let’s start with the basics:

What are the different kinds of brokers?

As we noted above, some states (I’m looking at you Colorado, North Carolina, Illinois, Washington, and Indiana) call their real estate salespeople brokers instead of agents. But there are further delineations of the term broker across the industry.

• Associate broker: A real estate professional who has completed the education and licensure requirements to become a broker, but does not manage or supervise other agents. This is a common choice for established agents who want to operate solo, without answering to a larger brokerage.
• Managing or employing broker: A real estate professional who is licensed as a broker and manages the mid-level, day-to-day operations of the office, including hiring, training, and overseeing other agents and support staff.
• Designated, principal, or qualifying broker (also broker of record or broker-in-charge): Ensures that all transactions are in compliance with all state and federal laws regulating real estate. This position holds the most responsibility and liability. Every real estate office has its own designated broker—this is the big boss.

What is a broker’s ‘salary’?

Real estate brokers generally earn their income from two primary sources: a base salary and commissions. Their income is made up of the incoming revenue of the real estate brokerage. This money comes primarily from a portion of each of the commissions the agents within the office earn. This is commonly referred to as a “split.” A common split is 75-25, meaning that for every property bought or sold, the agent keeps 75% and the brokerage gets 25%.

Brokers and brokerages may also earn money from charging agents monthly desk fees; this is a flat fee that agents pay whether they close sales or not. Though technically an income opportunity for brokers, most offices use those fees for recurring costs like rent, utilities and technology tools.

Also don’t forget that, as a real estate broker, you can assist your own clients in the buying and selling process and earn the full commission for those transactions as well.

Broker Salaries State by State

First, a note on the methodology behind The Close’s proprietary salary information: In order to create our own database of broker salaries, we collect data from numerous sources, including Indeed, ZipRecruiter, Salary.com, Glassdoor, and the National Association of Realtors (NAR). Keep in mind that these are general averages, which regularly change. So much depends on whether the broker is also selling, is a sole owner of the brokerage, or pays commission splits. And as with every real estate professional, the local market and time spent in the business also play a big role.

Why Are Broker’s Earnings So High (or Low)?

Are these numbers not what you’re expecting? Here are some reasons why:

• Data issues: It’s hard to get a true sense of average broker income. Salaries are collected through self-reporting, NAR surveys, and job postings. Throw in there the confusion over income versus salaries and the various types of brokers, and it can be a wild statistical ride. So take all this with a grain of salt, and remember, the true test of your potential salary is your local market and your hussle.
• A volatile housing market: Since real estate brokers’ total compensation is based on commissions, it makes sense that states with higher average sale prices would yield brokers with higher average incomes. This also means that big cities with high prices can skew state-level data upward.
• The demand-to-broker ratio: Real estate markets where there is high demand for brokers are going to result in higher average salaries. Let’s say Small Town, USA, has a median real estate broker salary of $100,000. And the median real estate broker salary for New York City is $110,000. If the average sold price for a home in Small Town is just over $175,000, compared to an average sold price for a NYC home of $790,000, why are those two salaries so close? Competition. In Small Town, there may be 30 real estate brokers operating, compared to 1,760 in New York City.
• Some brokers buy and sell; some don’t: A real estate broker is able to represent their own clients in the purchase or sale of real estate, but they aren’t required to. Some brokers choose not to sell so they can focus on running their business and managing their team. However, the ones who continue to represent clients tend to earn more money in direct commissions. NAR’s most recent member profile shows this clearly, as the median income for a broker who is selling is $107,900, while a broker who is not has an income of $93,400.

Should You Get Your Broker’s License?

If you’re hoping to increase your take-home pay and have the necessary qualifications in your state, it makes sense to work toward a broker’s license. You don’t have to manage other agents unless you want to. An associate broker, for example, has many of the benefits of being a broker, but without hiring and firing agents.

Getting a license is generally pretty straightforward, and almost always means taking prescribed coursework and passing a state licensing exam. The commitment is serious, but the rewards could be exponential.

Bringing It All Together

Nailing down an average broker’s salary can be tricky, because, like all things real estate, it depends. But the bottom line is, you’ll almost certainly make more than you would as a salesperson. So if you’re looking to increase your take-home pay and assume more leadership, getting your broker’s license is the perfect next step.

Have any advice for future brokers or experience to share? Please tell us in the comment section!