The 2023 Outlook on Real Estate Broker Salaries Across the United States

Stepping into the world of real estate brokerage promises both fulfillment and a potentially rewarding career journey. Becoming a licensed real estate broker grants you the autonomy of running your own business, ownership over your professional path, and an expanded earning potential. However, the financial rewards in this profession are contingent upon various factors, including your experience, geographical location, team dynamics, property specialization, and the prevailing market conditions.

For those considering this career path, we aim to demystify the income structure of real estate brokers, provide insights into the average real estate broker salaries by state, and underscore other essential aspects to bear in mind.

The base salary is a fixed, regular payment disbursed by the broker's business.

Comparing Real Estate Broker Salaries to Agent Salaries

In contrast, real estate agents are typically remunerated solely through commission-based structures. A typical commission split typically allocates 3% of the sale price to the listing agent and another 3% to the buyer's agent. In cases where dual agency representation is involved, covering both parties, a full 6% commission is earned.

Real estate agents are obligated to operate under the auspices of a sponsoring broker, and a portion of their commissions is shared with the broker upon successful transaction completion. The specific percentage of commission that goes to the broker depends on the contractual agreement in place. The split is often 75/25, though variations such as 90/10 or 80/20 can be found.

The Landscape of Average Real Estate Broker Salaries

As reported by Glassdoor, the estimated average annual income for a real estate broker in the United States is approximately $167,465. This figure encompasses an average base salary of $102,723, with an additional $64,742 in the form of bonuses, commissions, tips, and profit-sharing.

Top-Paying States for Real Estate Brokers

Drawing on Glassdoor's insights, the five highest-paying states for real estate brokers in 2023 are Montana, Missouri, Massachusetts, California, and South Carolina. It's crucial to note that commission rates can exhibit significant variance based on factors such as the city, market conditions, property types, sales volume, and levels of professional experience.

When considering your career path, it's equally vital to factor in the cost of living. For instance, while California ranks among the top states for real estate broker income, it also boasts one of the highest costs of living in the nation. Engaging in conversations with fellow real estate brokers in your target region and comprehending the local cost of living can empower you to make well-informed decisions. Additionally, it's prudent to take into account the differing licensing prerequisites across states.