Real estate brokers are independent licensed professionals that guide their clients through the process of a real estate transaction, as well as oversee transactions handled by other real estate agents that they supervise.

While a real estate broker salary can be quite high on average, this will vary considerably from state to state.

In this How Much Does a Real Estate Broker Make article, we review the average real estate broker salary in each state, break down the differences between a real estate agent and a broker, and outline the steps that you can take in order to pursue a career as a real estate broker.

Real Estate Broker Salary

According to the most recent data of the US Bureau of Labor Statistics (BLS), the average salary of a real estate broker in the US is $86,490.

Having said that, real estate broker salaries can vary significantly depending on your state:

State	Average Annual Salary
Alabama	$67,060
Alaska	$61,290
Arizona	$56,717
Arkansas	$67,560
California	$117,820
Colorado	$83,410
Connecticut	$58,040
Delaware	$112,650
Florida	$54,499
Georgia	$76,090
Hawaii	$116,290
Idaho	$52,300
Illinois	$60,010
Indiana	$50,190
Iowa	$52,120
Kansas	$83,570
Kentucky	$51,770
Louisiana	$52,460
Maine	$98,068
Maryland	$94,980
Massachusetts	$79,690
Michigan	$57,720
Minnesota	$71,190
Mississippi	$88,300
Missouri	$51,520
Montana	$104,030
Nebraska	$148,820
Nevada	$70,930
New Hampshire	$81,530
New Jersey	$63,425
New Mexico	$73,470
New York	$84,760
North Carolina	$85,680
North Dakota	$81,110
Ohio	$61,790
Oklahoma	$41,280
Oregon	$102,750
Pennsylvania	$90,200
Rhode Island	$$69,048
South Carolina	$87,210
South Dakota	$82,930
Tennessee	$83,000
Texas	$56,333
Utah	$56,740
Vermont	$94,230
Virginia	$75,330
Washington	$90,290
Washington D.C.	$63,861
West Virginia	$49,590
Wisconsin	$80,820
Wyoming	$50,904

How Does a Real Estate Broker Make Money

Real estate brokers gain their income by collecting commission on each real estate transaction that they or their company accomplishes, as well as by assisting their own clients in the purchasing or selling of real estate.

If you are planning to work independently as a real estate broker, your entire salary will be made up of commissions. You will, however, also be able to work with your own real estate company in order to supervise and manage other real estate agents.

In this scenario, your income will be a percentage of the commissions earned by the real estate agents that you are supervising. The exact percentage can range anywhere between 25% and 40%.

Note: As a real estate broker, you will also be able to make money by charging desk fees to collaborating agents. This is a monthly flat fee that will not relate to commissions or a real-estate agent’s performance in any way.

What is the Difference Between a Real Estate Agent and a Broker

Real estate agents and brokers work in the same sector and may both guide clients through the process of a real estate transaction.

There are, however, a few differences between them that you should keep in mind:

• Real estate brokers are required to have agent experience
• Real estate brokers are required to obtain additional training
• Real estate brokers have generally already built a strong professional track record

If you decide to become a real estate broker, you will be able to work independently – rather than under a real estate agency — and thus receive higher (or the full amount) of commission on any sales that you negotiate.

You will also be able to create your own real estate firm and employ real estate agents to work under your supervision. This is beneficial, as it can mean that you will earn commission on all the sales and/or purchases that are negotiated by them.

As you can see, a real estate broker has a wider range of opportunities to earn money in comparison to a real estate agent.

How to Become a Real Estate Broker

If you want to become a real estate broker, you will need to complete the following steps:

• Complete a Broker Pre-Licensing Course
• Submit a License Application
• Get a Fingerprint-Based Background Check
• Pass the Real Estate Broker Exam
• Wait for Your Application to be Reviewed

Complete a Real Estate Education Course

You will need to successfully complete a broker pre-licensing education course in order to become licensed. This is a requirement in every single state, and can help you:

• Obtain a deep knowledge of contracts – You will become comfortable with both: explaining contracts to clients, and discussing contract terms with real estate companies
• Develop great negotiation techniques – A real-estate education course can teach you how to negotiate strategically in order to bring in agreements that are beneficial to both yourself and your clients 
• Pass your real estate broker exam – You will be able to review condensed study materials and take several practice exams through a real estate education course. Of course, different benefits are available depending on the education course that you pick

Note: During your course, you will have the opportunity to dive into a plethora of interesting topics, including: professional conduct, real estate insurance, appraisal, and management.

Submit a License Application

The next step is to submit your license application. There can be different requirements and fees depending on your state. You will need to check your state’s Real Estate Commission before filing your application.

Note: Finding your state’s specific information can be quite a headache. We recommend reading our state-specific How to Become a Real Estate Broker guide instead.

You will be able to direct yourself to your state’s real estate broker licensing page, which will guide you through all of the steps that you will need to take in order to qualify as a real estate broker in your state.

Get a Fingerprint-Based Background Check

Depending on your state, you may be required to get a fingerprint and/or background check and submit it to your state’s licensing body.

This is not always a requirement. Some states only require background checks, and some choose to skip this requirement entirely and replace it with a Honesty or Good Character form.

Pass the Real Estate Broker Exam

In order to qualify as a real estate broker, you will need to take and pass your state’s real estate broker exam.

This is usually administered through a third-party testing service, such as PSI or Pearson VUE.

The minimum percentage needed to pass, exam structure, and required fees can all vary from state to state.

Wait for Your Application to be Reviewed

Once you have submitted your application, you will need to wait for your exam results, fingerprint and background checks – if applicable – and education course certificate of completion to be reviewed and verified.