The real estate industry is abundant with job opportunities that are a perfect match for almost anyone interested in following a new career path. A real estate agent and a real estate broker are the two most sought-after careers within the industry. And for good reason! Both careers as an agent and a broker have great potential for growth and have a competitive average salary.
Agents are seldom trapped behind a desk. Their days are filled with building relationships with clients and touring potential homes. They must work beneath a brokerage. Real estate brokers are capable of working independently to sell homes to clients or managing a brokerage and the agents who work for them.
There are many differences between real estate agents and real estate brokers. The salary is perhaps one of the most important aspects to consider when choosing a new career. But, with both career paths requiring different state-specific licensing and rules, it is difficult to decipher what each position makes on average per year.
How Much Do Real Estate Agents & Real Estate Brokers Earn?
For this analysis, we used a Bureau of Labor search tool to find the mean annual salary of real estate agents and brokers in each state. Here are the results.
|State||Agent||Broker||+/- national average for agents||+/- national average for brokers|
* This data was taken from a search tool that accessed 2019 census data. These numbers are the mean salary of real estate agents and brokers in each state. Connecticut, Iowa, Mississippi, Nebraska, Montana, New Jersey, North Dakota, Pennsylvania, Rhode Island, Tennessee, and West Virginia did not have available census data for the mean salary of real estate brokers in their state. For these states, we used self-reported salaries from ZipRecruiter.com.
Who Makes More Money, a Real Estate Agent or Broker?
According to our analysis, the median national salary for a real estate agent is $48,930.00. For a real estate broker, however, the median national salary is over $10,000 more at $59,720.00. On average, brokers make more annually than agents.
Where Do Real Estate Agents Make the Most Money?
Where Do Real Estate Agents Make the Least Money?
Where Do Real Estate Brokers Make the Most Money?
Where Do Real Estate Brokers Make the Least Money?
How to Make More Money as a Real Estate Agent
Even though real estate agents make a nationwide average of $48,930, every agent makes a different salary. Salary can range from $25,000 to over $1,000,000 a year! To make more money as a real estate agent, you will need to focus on gaining more experience, increasing your effort, and dedicating more time on your profession. Additionally, your location and your niche expertise will influence your salary potential as an agent or broker.
1. Gain Industry Experience
The first few years an individual works within the real estate industry, their salary may fall below the national average. Because a career in real estate is dependent on connections and relationships, it may take a few years for a new real estate professional to build a solid foundation and establish trust with their contacts.
Continue working on developing connections, and over time, you will gain more clients and your salary will start to increase.
2. Focus on Your Effort and Dedicate More Time to Your Profession
Though being a professional in the real estate industry allows a person to break away from the typical 9 to 5 workday, agents and brokers still need to put in a great amount of time and effort before they see lucrative results.
Time management is difficult when someone first breaks away from their jobs to pursue a career in real estate. People working in the real estate industry part time will most likely make a part-time salary.
Simply put, the more time and effort you put into your craft, the more money you will make.
3. Find a Lucrative and Profitable Location
As you can see from the salary chart above, real estate agents and brokers make different salaries in different locations. This is because the real estate market is different in every state.
An agent working in New York City or Miami may have more work and make more in commission from higher priced homes than a real estate agent working in a small town in Kansas.
Salaries may differ within different locations in each state. Higher demand and fast-paced purchases in a city are sure to garner more of a profit than the slower pace and lower demand in more rural areas.
If you are interested in making more money in real estate, find a location that has a high-demand for real estate agents and is within a booming market.
4. Pick the Right Niche
Agents have different types of nices that they work in. These different niches bring different commissions based on the demand and the current state of the market. Here are a few of the most popular types of niches for real estate agents.
Residential Real Estate
These agents usually work with families or individuals looking for a home. The most common property types are single-family homes, condominiums, co-ops, townhouses, duplexes, triple-deckers, quadplexes, high-value homes, multi-generational and vacation homes.
Luxury Real Estate
These agents usually work with ultra wealthy individuals who have assets of $30 million or more. They're among the world's wealthiest individuals and it is difficult to break into this field of real estate without connections or a network already established.
Commercial Real Estate
These agents usually work with clients interested in purchasing business properties. These properties include shopping centers, strip malls, medical centers, educational buildings, hotels, offices, and apartment buildings.
Industrial Real Estate
These agents usually work with clients interested in purchasing property for manufacturing and warehouses. These properties are commonly used for research, production, storage, and distribution of goods. The main difference between Industrial and commercial properties is in the zoning of the property and the construction of the buildings.
Land and Vacant Property Real Estate
These agents usually work with clients interested in purchasing land. These properties include vacant land, working farms, and ranches. Vacant land includes undeveloped, early development, reuse, subdivision, and site assembly parcels.
Written and Published by: VanEd