Salary of a Real Estate Broker and Their Types

Real estate brokers are licensed to manage their businesses. As independent businesspeople, brokers often sell real estate property owned by others. In addition to helping their clients to buy and sell real estate properties, they may help rent or manage properties for a fee. Real estate brokers associate buyers and sellers in the real estate industry. The average salary of a real estate broker is about $70,000 a year. A career as a real estate broker might not sound too alluring, because most of us have at least one bad experience with an inefficient mortgage broker once in our life. This is because there were no barriers to becoming a broker.

Types of real estate brokers

Being a real estate broker is more complex than what you think. There are mainly three types of real estate brokers such as –

1. Associate Real Estate Broker

This is a real estate broker who has a brokerage license but works at a firm instead of managing their own business. These brokers are usually sellers. Associate brokers can be just as successful as the broker who owns or manages the real estate firm. But they prefer the associate position because they have lower monthly expenses and have lower risk on a variety of levels. The average salary of associate brokers is $56,000. It is lower than the salary of a real estate broker who owns or manages a real estate firm, but it is a lot higher than a real estate agent’s salary. 

2. Managing Broker

Managing brokers are the broker who does not own a firm but still manage their firm. They usually, work at offices of major real estate tycoons. These companies have individual offices set up in various cities and states and often run an individual office. They can also be hired by smaller and privately owned real estate companies. This occurs when the broker-owner needs assistance or cannot be at their office during day-to-day office hours. The main role of these brokers is to oversee the real estate agents and associate brokers. The average salary that a managing broker can earn is $97,000. Managing brokers has a lot of stress managing all of their agents and managing their clients. 

3. Broker Owners

Broker-owners or designated owners are the individuals who own a real estate firm. This is the main person responsible for sponsoring real estate agents, though this role can also be given to the managing broker. “Sponsoring” means they keep a portion of all of their agent’s commissions with them. Some of the broker-owners do not have agents under their belt. They run their own business and do their sales. This means that they keep the entirety of their commissions. Broker-owner also has a choice to sell the property or not. Broker-owners who sell real estate property make a lot of money.

The average broker-owner salary of a real estate broker with selling is $147,000 and $142,000 without selling. Regardless of whether or not they sell, broker-owners are a lot more expensive. The owners need to pay for their marketing and all of the other expenses required for owning a real estate business.

Factors that one need to keep in mind while starting a broker career

These are some of the factors that one need to keep in mind while starting a broker career such as –

1. Building contacts: Buying, selling, or renting real estate property is something almost every person goes through. So, every person you meet could be a probable client. So one needs to circulate your business cards among friends, family, social, and business contacts. One needs to follow up with calls, messages, or emails to make sure these people remember your name for the future. 
2. Working with clients: You might not have a fixed time for working as you will be spending hours of your daily routine time searching up for the preferred properties for them, making presentations, photographing, and documenting properties, and accompanying your clients to any property-related meetings where your presence might be needed
3. No fixed salary: Real estate brokers mostly make money through commissions based on a successful transaction of selling a real estate property. This means that you could find yourself working for days without taking home any money. One also needs to share the commission among various people involved in this transaction process.

Average Salary of Real Estate Broker

The average salary of a real estate broker is around $70,000 a year. But that does not mean you will make this much. You make this salary when you manage between 9-13 realtors and how much commission you make from your agents. Most brokers do not make a salary. They make a commission off of their sales and their agent’s sales. But if you work for a major brokerage or real estate firm, then you are likely to make a salary depending on these things such as –

• If you sell a real estate property or not
• With how many agents you have working    
• How much real estate property do they sell?
• Whether your agents are full-time or part-time
• Owning a business or working for a larger company
• What brokerage position you are in
• Your overall experience as a real estate broker

Wrap Up

If you are already a real estate agent, a real estate broker is your next step in advancing your real estate career. One has different career options to choose for a broker career with a different salary. To know which broker job suits you, you need to analyze the salary of a real estate broker with the hours you work and the workload of the job. Regardless of the role you choose, you will be satisfied with your job as a real estate broker. 

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