Yes, real estate brokers typically make more than agents in Florida. However, the increased commissions come with increased responsibilities. Is it worth getting a broker’s license in Florida? We’ll answer the question, “How much does a broker make a year?” and help you decide if earning your broker’s license is right for you.
Key Takeaways
- Real estate brokers in Florida typically earn more than agents. This increased earning comes from higher commission splits, brokerage ownership, and offering additional services like property management.
- A broker’s income can be influenced by controllable factors such as the number of hours worked and specializing in niches like eco-friendly properties or luxury homes, as well as uncontrollable factors like the overall state of the economy.
- Becoming a broker offers advantages such as higher income, more control over business operations, diversified income streams, and professional growth. However, it also presents challenges like regulatory compliance, increased liability, and potentially less client interaction.
- Deciding to become a broker involves weighing the increased income and control against the additional responsibilities and challenges.
How Much Does a Broker Make a Year in Florida?
According to the latest income data collected by Colibri Real Estate, the full-time average gross income for a real estate broker in Florida is $545,143. How does that compare with what you earn as a real estate salesperson? Of course, your income as a broker depends on many factors, which we will outline in the next section.
Factors Influencing Earnings for Real Estate Brokers
Your income as a real estate professional depends on your actions and decisions – as well as factors you cannot control. After all, the overall state of the economy and industry may cause peaks and valleys in your earnings. However, working more hours or focusing on an underserved niche can help weather a down market.
Here are factors you can control that may influence how much you can make as a real estate broker.
1. Number of hours you work per week
According to the Florida real estate income report, a real estate professional’s average income increases steadily the more hours they invest in their business per week. After downloading the report, you’ll notice that real estate professionals working more than 60 hours per week earn 91% more than those working 50 – 59 hours!
2. Niche or specialty
Real estate professionals who focus on one or more specializations earn more than those who don’t associate themselves with a particular niche. The most profitable specializations are green or eco-friendly properties, foreign investment, commercial properties, and luxury homes.
3. Other factors that influence earnings
Your location and length of time in the industry also may heavily influence your earnings.
Related: Florida’s Real Estate Boom: Navigating the 2024 Market Surge
Some Florida markets are growing faster than others (Polk County is hot now!). In addition, take heart in knowing that statistically, real estate professionals earn more with increased experience.
Have you survived at least two years in the competitive real estate industry? You may be considering increasing your earnings by becoming a broker. Let’s compare the earning potential of a broker vs an agent in Florida.
Comparing Earning Potential: Brokers vs. Agents
Real estate brokers must have at least two years of experience before earning this license designation. But it’s not simply experience that automatically increases a broker’s earning potential.
Here are a few reasons why brokers typically earn more than agents.
Higher commission splits
Brokers often can negotiate to keep a larger percentage of their sales commissions. They require less supervision since they can complete transactions on their own.
Brokerage ownership
Some brokers own their own brokerage firms or take leadership positions in their existing firms. This allows them to earn income from the overall profitability of the business, including fees from agents, property management, or other services the brokerage offers.
Advanced training and education
You must take 72 hours of broker license courses to become a broker in Florida. These classes may enable you to complete more complicated transactions and will help you improve your negotiation skills. Knowledge is power, and power yields higher commissions.
Additional services
Brokers can offer additional real estate services, such as property management. Some brokers become licensed to diversify their income.
Advantages and Challenges of Brokerage Ownership
It’s important to note that there are advantages and challenges that come with being a broker. Here are some to consider as you make decisions about your career.
Advantages of being a broker
Besides higher income potential, here are some additional advantages of becoming a real estate broker in Florida.
Makes you more marketable: Having a broker license makes you more marketable. Clients are more likely to trust you for commercial or luxury real estate transactions, which can increase your income even if you decide not to take a leadership role in your firm.
Control: Brokers have more control over business operations, policies, and the company’s overall direction. This includes setting commission splits, choosing marketing strategies, and managing the company culture.
Diversified income: Brokers can offer various real estate services, such as property management, training, and consulting. This allows for multiple revenue streams, which is essential in a slower real estate market.
Professional growth: Running a brokerage can enhance your personal and professional development and allow you to improve your leadership and management skills.
Challenges of being a broker
It won’t always be sunshine and roses when working as a broker – even though the Sunshine State is currently experiencing a hot real estate market. Here are some drawbacks of being a broker.
Regulatory compliance: Brokers must ensure their brokerage complies with all local, state, and federal real estate laws and regulations, which can be complex and time-consuming.
Liability and legal issues: Brokers are responsible for the actions of their agents, and any legal issues or disputes can result in significant liability and financial consequences for the brokerage.
Less time “doing” real estate: If your favorite part of being a real estate agent is working with clients, you may have less time to spend with them if you become a broker with a leadership position. Of course, this may be a benefit of becoming a broker if you are ready to be less client-facing.
Is It Worth Getting a Broker License in Florida?
We have shown that brokers tend to make more money, have more control of their business operations, and can diversify income streams. However, you may still wonder, “Is it worth getting a broker license in Florida?” While we can’t answer this highly personal question for you, we can tell you that becoming a real estate broker is easier than ever. Gold Coast Schools can help.
Gold Coast Schools has been Florida’s leader in real estate education since 1970. Advance your career to the next level by completing the Florida broker course at one of our in-person locations. You can also complete your 72-hour course from the comfort of your home or office by participating in livestream or at-your-own-pace online classes.
Questions? One of our Florida real estate licensing experts can help! Contact Gold Coast Schools today to learn more about earning your broker license in Florida.