![]() Read our guide to being a part-time real estate agent to find out if it’s the right fit for your lifestyle.īrokers make an average of 15% to 19% of their income from repeat business and referrals from past clients. If you’re thinking about becoming a real estate agent, make sure you have a clear understanding of what the industry actually looks like. Pro tip: Even though the highest income earners work long hours, real estate can still be a great industry for those wanting to generate some extra money in a smaller number of hours. This is one of the main reasons why real estate brokers average much higher incomes than real estate agents. ![]() On the other hand, the vast majority of brokers work full-time hours, especially if they are the principal broker-owners of their brokerage. In fact, the NAR found that the median number of hours worked per week by all Realtors was only 35. Many real estate agents work only part time, and there are some agents who hold a license and do not actively market or work on transactions. One of the main differences between real estate agents and brokers, other than their title, is their time commitment. Here are six of the biggest factors to consider when estimating your broker salary: 1. However, if you take the income data into consideration along with some of the most impactful factors of a broker’s business, you may get a clearer picture of your income potential. ![]() Because of the various business models that a real estate broker can choose, it’s nearly impossible to determine a salary number that accurately reflects what an individual broker can make. Top 6 Factors Affecting a Broker’s SalaryĪ real estate broker’s salary does not depend on their title, but on how they run their business. In these transactions, brokers will be able to collect 100% of the commission or put a portion of their commission back into their real estate business. In addition to income earned from agent transactions, brokers can also work with their own clients to collect commissions. For example, if the commission split is 70/30, the agent will collect 70% of the commission earned, and the brokerage will collect 30%. ![]() Brokers will be able to dictate the commission splits they share with agents and collect money from each transaction that’s completed. This workload is much heavier, but the income potential is also much higher. On the other hand, a broker known as a “broker-owner,” “principal broker,” or a “broker-in-charge” can open their own franchise and supervise hundreds of agents. However, they can often negotiate a higher split since they have more experience in the industry than a real estate agent. This means their income is based solely on a commission split with their sponsoring brokerage. For example, associate brokers may operate as real estate agents and generate an income solely through sales. National and state-level real estate broker salary estimates range widely because of the various types of real estate brokers. Data shows that brokers, on average, make significantly more than agents. They may also earn a share of the firm’s profits, production bonuses, or a mixture of all three. Real estate broker incomes depend on their own real estate transactions and those closed by the agents they supervise. Indeed also reported that real estate brokers earn an average of $42,000 a year in commissions. On the other hand, national estimates of broker salaries from reputable sources like the BLS,, , and Indeed range from $62,010 to $81,186, with the top real estate brokers making well over $100,000. In addition, averages generally do not accurately reflect the true income potential, so use this information as a general reference.Īccording to the National Association of Realtors (NAR), the median Realtor income in 2021 was $54,300, and the Bureau of Labor Statistics (BLS) estimates that the average real estate agent salary in 2021 was $48,340. Keep in mind that some data is limited, especially with such a vast range of incomes.
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