Real estate brokers have two sources of income; a basic salary and commission. The basic salary is from the commissions the commission that an agent in the office gets. In the US, the agent gets 75%, and the broker gets 25%. This is called split.
There are also other companies that charge agents desk fees whether they have crossed a deal or not.
The amount paid to brokers can be high or low depending on the following:
- The average sale price of a property. Most real estate brokers are paid through commission, and the percentage in question depends on the amount that the house is going to be sold. If the state has a higher average sale price, the brokers will earn more.
- The ratio of the demand in the market and that of the available brokers. If an area has high demand and the number of brokers is few compared to the demand, they are going to earn more and vice versa.
- Difference preferences of a broker to continue presenting their client in the buying and selling of the property or not. Those that continue to represent clients tend to earn more because they earn a direct commission.
Who earns more between a broker and an agent?
As we have mentioned above, brokers with large brokerages and a large number of agents earn a pretty good amount; in addition, they can have all this and still decide to represent their clients. This means an additional amount since it will be a direct commission.
There are those brokers that have small brokerage and do not represent clients; this will have a decrease in money earned from the first one.
When it comes to agents, their salaries depend on the number of deals they close in a year.
According to research, the average real estate broker salary in the US is $68,256, and a basic salary of $42,000, to sum up to $110,256.
California is the highest on the list, with a gross salary of $127,556. This includes both salary and commission.