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How much does a real estate broker make?

APRIL 15, 2025
How much does a broker make - real estate broker walking through the city

If you’re considering a career in real estate, you might wonder: how much does a broker make? Brokers often earn significantly more than agents, but the actual income varies depending on their specialization, experience, and location. In this article, we’ll explore different types of brokers, their earning potential, and factors influencing their income.

What type of real estate broker gets paid the most?

  • Real Estate Brokers: Typically earn the most in the property market. They oversee agents and take a percentage of commissions from sales.
  • Mortgage Brokers: Connect borrowers with lenders and earn through commissions or fees. High-volume brokers can earn substantial incomes.
  • Commercial Brokers: Specialize in commercial properties, where transactions involve higher values and larger commissions.
  • Investment Brokers: Handle large-scale real estate investments, earning commissions or fees based on deal size.

While all brokers have the potential for high earnings, commercial and investment brokers tend to earn the most due to the size and complexity of their deals.

How does a real estate broker get paid?

Real estate brokers earn primarily through commissions. Here’s how it typically works:

1. Commission Splits

  • Brokers primarily earn money through commission splits with their agents. When an agent completes a sale, the total commission (often around 5-6% of the sale price) is typically divided between the buyer’s agent and the seller’s agent.
  • From there, the agent’s brokerage takes a percentage of the agent’s commission, which can range from 20% to 50% or more, depending on the agreement and the level of support provided.
  • Brokers often negotiate these splits based on factors like the agent’s experience, production level, and whether the brokerage offers additional resources such as training, marketing, or administrative support.
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2. Brokerage Fees

  • Some brokers implement a desk fee or monthly fee model, where agents pay a set amount to work under the brokerage. This can cover office space, technology, legal support, and access to leads.
  • Even if an agent doesn’t close a deal, the broker still earns income through these fees, providing a steady stream of revenue.
  • Additionally, brokers may charge transaction fees per sale to cover administrative or compliance tasks.

3. Own Transactions

  • Licensed brokers are allowed to facilitate real estate transactions independently without splitting commissions with another broker.
  • When they represent buyers or sellers directly, they earn the full commission (typically 2.5% to 3% per side) rather than splitting it with an agent.
  • This makes conducting personal sales particularly profitable, especially in high-value markets.

4. Referral Fees

  • Brokers often build networks of clients and other brokers. By referring clients to agents or brokers in other markets, they can earn referral fees, usually a percentage (20-35%) of the commission from the referred transaction.
  • This passive income stream can add up over time, especially for brokers with extensive connections.

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5. Property Management and Additional Services

  • Some brokers offer property management services for landlords and earn through management fees, which are generally 8-12% of the monthly rent.
  • Others provide ancillary services such as mortgage brokerage, title services, or real estate consulting, further diversifying their income.

6. Bonuses and Incentives

  • In competitive markets, developers or sellers may offer brokers bonuses for selling properties quickly or exceeding sales goals.
  • Brokers may also receive performance-based incentives if their brokerage reaches a certain volume of sales within a given timeframe.

7. Profit from Agent Development

  • Experienced brokers may mentor new agents and receive a portion of their commissions as part of a team structure or mentorship program. This creates ongoing income while helping newer agents grow.

A broker’s commission generally ranges from 2.5% to 3% of a property’s sale price, though this may vary based on location and market competition.

How does a mortgage broker get paid?

Mortgage brokers act as intermediaries between borrowers and lenders. They earn money through:

  • Lender Commissions: Brokers receive a percentage of the loan amount from lenders as a commission.
  • Borrower Fees: In some cases, borrowers pay brokers directly through loan origination fees.
  • Volume Bonuses: High-producing brokers may receive bonuses from lenders for closing multiple loans within a specific period.

The average mortgage broker commission ranges between 1% to 2% of the loan amount, meaning higher-value loans lead to larger commissions.

Do real estate brokers make more than agents?

  • Yes, typically: Brokers often earn more than real estate agents because they can collect a percentage of their agents’ commissions.
  • Business Ownership: Brokers who own their own firms may have additional income streams, including franchise fees or office rentals.
  • Higher Responsibility: With greater earning potential comes increased responsibility, including legal liability and managing agents.

While agents may earn a competitive income, brokers generally see higher overall earnings by leveraging their team’s performance.

What is the highest-paid real estate broker?

The highest-paid brokers often work in:

  • Luxury Real Estate: Specializing in multi-million-dollar properties means larger commissions per sale.
  • Commercial Real Estate: High-value properties like office buildings, shopping centers, and industrial complexes generate significant commissions.
  • Investment Brokerage: Handling large-scale transactions and portfolios results in substantial fees and commissions.

Some top brokers report earning millions annually, particularly those with established networks and extensive experience.

Summing-up

Becoming a broker can be a lucrative career choice in the real estate industry. Factors like specialization, experience, and market conditions play a significant role in determining income. If you’re ready to take the next step, consider obtaining your broker’s license and exploring opportunities to maximize your earnings.

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