Summary List Placement
Real estate brokers oversee property transactions and arrange deals on behalf of their clients.
Brokers own brokerages, which employ real estate agents. They generally have more training than agents and handle more technical aspects of real estate transactions. But not all brokers take home the same paycheck.
According to the Bureau of Labor Statistics’ 2019 Occupational Employment Statistics data, the average annual salary for real estate brokers nationwide is $81,450, around $20,000 higher than the average agent’s yearly wage.
While the median annual broker salary sits at $59,720, there are significant differences in pay across the board.
Brokers in the top 10% earn $178,720 annually, while those in the lowest-earning 10% make about $23,600 a year.
Similarly, brokers in the 25th percentile earn $35,940 on average, while brokers in the 75th percentile earn an average of $95,790.
Regional differences and drivers of increased compensation
With brokers’ compensation directly correlated to the values of the listings of the agents they manage, it’s easy to see that there are regional differences when it comes to brokers’ salaries.
Home to some of the US’ most expensive zip codes and most populous cities, states like New York, Massachusetts, and California, as well as Washington DC, have the highest salaries for real estate brokers, likely a result of the high volume and value transacted by the agents that operate within these states’ brokerages.
New Mexico also tops the list of locations for high-earning brokers, potentially a result of the state recording only 80 brokers statewide, compared to New York’s 2,240 or California’s 6,320.
And though location is a huge factor impacting a broker’s paycheck, it isn’t the only factor that determines their compensation.
Experience, specialty, and firm size are also large determiners of broker pay, as a broker’s number of years in the business, the niche market they focus on, and the number of agents and transactions they oversee directly correlates to their income. Those who focus on luxury properties, for example, are well-poised to make more, and brokers with larger firms manage more agents, which means a higher volume of deals done on a regular basis.
A broker’s network matters, too, as brokers new to the field are forced to spend more time building relationships with clients and creating their brand, while experienced brokers can often rely on their prestige and existing market presence to build new business.
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Source:: Business Insider