Whether facilitating a $400,000 residential sale or closing a $20 million commercial lease, real estate brokers help buyers and sellers navigate everything involved in the process, from contracts and escrow accounts to negotiation strategy and marketing.
They play a key role in real estate transactions, acting as strategic guides, negotiators and relationship builders. In 2023, 89% of U.S. homebuyers enlisted a broker or licensed real estate agent, demonstrating the essential expertise they bring.
However, the term ‘broker’ can vary in meaning depending on local licensing requirements and regulations set by state agencies or national real estate associations. Below, we explore the expanded role of today’s real estate broker.
Defining the role: what is a real estate broker?
These licensed professionals are more highly qualified and have greater legal authority than real estate agents. Real estate brokers are qualified to run a real estate firm, supervise agents and manage operational risk across offers and listing contracts. Let’s look at what sets them apart.
Licensing, oversight and legal responsibility
To become a broker, candidates must first pass their real estate salesperson or agent exam. They then need to complete additional classroom hours, pass a separate broker licensing exam and fulfill experience requirements that often include verification of time working under a licensed broker.
Brokers must also comply with local real estate law and ongoing renewal fees. They have overall responsibility for supervising agent activity and ensuring every real estate listing and client interaction adheres to legal standards.
Brokerage leadership
Brokers often own real estate offices. Their responsibilities include hiring broker associates, managing staff and developing agency strategy. They define the firm’s direction – residential, commercial or specialty real estate sectors – establish operational processes (from listing services to escrow procedures) and build the firm’s reputation.
Commission management and financial duty
Real estate brokers design the commission structure, overseeing splits between agents and ensuring they are processed correctly. They manage escrow accounts, making sure deposits are safeguarded in accordance with regulatory board rules and consumer protection guidelines. Mishandling funds or miscalculating commission costs can lead to penalties or license suspension.
Professional mentorship
Beyond transaction oversight, brokers also serve as mentors. They train agents in negotiation, client management and MLS (Multiple Listing Service) listings, often hosting real estate courses, workshops and informal coaching sessions.
Senior brokers guide new agents through making offers, handling contracts and building relationships with buyers, helping them gain credibility and market knowledge.
For insights on preparing for these roles, read ‘What degree do you need for real estate?’
Types of real estate brokers and agents
There are many different career paths you can follow in this sector. Below are some key roles for brokers and agents:
- Residential brokerage services: involving properties for sale, home staging, running MLS listings, managing offers and guiding first-time home buyers through contracts
- Commercial real estate broker: handling complex leases and acquisitions. Commercial brokers may negotiate construction contracts, zoning approvals or property development finance
- Listing agent: represents sellers, overseeing marketing and property exposure
- Buyer’s agent: research listings, negotiate offers and manage financing terms on behalf of property purchasers
- Investment and international brokers: work with high-net-worth clients on real estate investments or Real Estate Investment Trust (REIT) deals, navigating cross-border due diligence, dual agency, luxury contracts and hospitality projects
These reflect the breadth of real estate licensing options and agency models in today’s urban and suburban property markets.
Daily responsibilities and required skills
A broker’s working week spans dozens of activities across listing services, client meetings and legal coordination. Their main duties include:
1. Sourcing and managing listings
Brokers constantly scan the market, reviewing what’s on sale, attending broker meetings or property tours, building networks with real estate firms and evaluating off-market opportunities.
2. Advising buyers and sellers
Managing client expectations is an integral element of a broker's role. They are responsible for aligning vendor expectations with local market conditions and often pre-qualify buyers to ensure they meet financing requirements and understand bidding strategies.
3. Mastering negotiation
Part of the job is securing the best return for clients, so brokers have to be skilled negotiators and understand buyer motivation and the rhythm of the market.
4. Handling contracts, compliance and inspections
A large part of brokers' work is related to regulations. That means ensuring documentation complies with legal standards, overseeing inspections, appraisals and title searches and working with real estate attorneys.
5. Marketing and relationship building
In 2023, brokers worked an average of 35 hours per week and closed about 10 residential and 3 commercial deals each year. To achieve this, they must spend significant time networking and promoting their services. This includes activities such as managing social media accounts, hosting open houses and taking part in local community events, all of which help strengthen their brand, grow their network and generate leads.
Commission structure and earning potential
The primary compensation model for real estate brokers continues to be commission-based:
- A standard 5–6% commission is taken on a property’s sale price, split between brokers and agents
- Brokerage splits vary, typically between 50/50 and tiered models based on agent/team performance
- Brokers receive additional revenue from escrow management or referral fees
Earnings in practice
A real estate broker’s income can vary significantly depending on their role, experience and business model. The following figures illustrate typical earning ranges:
- Median annual income (U.S. BLS, May 2024): Brokers: $72,280 | Agents: $56,320
- Mid-level brokers: $90,000–$103,000
- Tech-enabled brokerages (e.g., eXp, Compass): $90,000–$126,000, with top performers exceeding $127,000
Emerging models, such as flat fees, buyer-paid commission or salary-plus, are offering new flexibility. According to Business Insider, only 6% of sellers now go For Sale By Owner (FSBO), while 86% of buyers still rely on brokers. This landscape shift is shaping broker compensation models and consumer expectations.
Career pathways and long-term roles
A real estate broker’s career can be a launchpad to higher-level roles, new ventures and more focused roles. With the right combination of licensure, experience and professional networks, brokers can unlock new income levels and influence across the real estate industry.
1. Broker-owner or brokerage principal
For many real estate brokers, the ultimate goal is to open their own firm. This shifts the focus from individual transactions to building a business: hiring real estate agents, developing a brand and managing daily operations across one or multiple real estate offices.
As the leader of a brokerage firm, a broker-owner defines the company culture, sets commission structures and handles everything from regulatory compliance to digital marketing strategies. They also oversee licensing and ensure agents meet the educational requirements and pay the required renewal fees.
Top-performing boutique brokerages report six-figure and even seven-figure earnings for principals. These firms often blend residential brokerage services with consulting, development support and luxury real estate sales, creating multiple income streams beyond agent commissions.
2. Commercial real estate broker
Specializing in office space, retail developments, industrial facilities or mixed-use projects, commercial real estate brokers play a vital role in high-value transactions. These deals often involve complex lease agreements, due diligence and long-term client relationships with investors, developers and real estate investment companies.
According to Glassdoor, the average salary for a U.S. commercial real estate broker is $247,444, with top performers earning over $347,000. This total includes an average base pay of approximately $125,000, as well as a similar amount in additional compensation.
Commercial brokerage also requires a deep understanding of real estate law, contract negotiation and property valuation, usually supported by ongoing professional licenses and formal training in business, finance or economics.
3. Luxury and international property broker
Working with global investors, high-net-worth individuals and international buyers, these real estate professionals specialize in prestigious listings such as penthouses, estates, resorts and heritage properties. Their clients expect concierge-level service, sophisticated negotiation skills and complete discretion.
Transactions in this area may involve dual agency, cross-border financing and legal compliance across multiple jurisdictions. Brokers may collaborate with attorneys, developers and hospitality partners to facilitate the sale or acquisition of assets such as boutique hotels, branded residences or second homes abroad.
With uncapped commissions and high-value contracts, luxury brokers can earn substantial income from even a few successful closings per year. But competition is fierce and success requires years of experience, elite networking skills and expertise in the real estate process and global market dynamics.
4. Team leader or agency manager
Within mid-to-large brokerage firms, experienced professionals can move into management and training roles. A team leader or agency manager often supports associate brokers and licensed real estate agents by providing mentorship, evaluating performance and coaching on client service and sales growth best practices.
These roles involve shaping the training process, managing listings across teams and ensuring agent compliance with real estate licensing requirements. Compensation is often tied to team performance, blending base salary with overrides or bonuses.
Managers also build relationships with key industry players and help their teams navigate real estate activities, from new listings to complex closings.
Brokerage innovation and industry evolution
As real estate brokering becomes more digital, brokers must keep pace with innovations that boost productivity, improve consumer experiences and open new revenue streams.
PropTech and AI
Technology has reshaped the real estate industry and brokers who embrace these advances can gain a competitive advantage. According to Business Research Insights, the global PropTech market is projected to grow from $50.3 billion in 2024 to more than $407.5 billion by 2033.
Brokerages such as eXp Realty are leading the way, using AI-powered assistants such as Luna to streamline listing creation, automate follow-ups, manage calendars and respond to compliance queries. These innovations improve the speed and accuracy of communication between brokers and clients.
Listing enhancements and virtual tours
Modern brokers are now increasingly using 3D tours, drone footage and VR staging tools to differentiate their listings. Reports from Winsavvy suggest that 67% of buyers find virtual walk-throughs influence their decision making, a clear incentive for brokers to invest in immersive technology.
To improve the listing process, platforms such as Matterport and EyeSpy360 help brokers reduce time on market and boost buyer engagement, especially for properties priced above the local median.
CRM and digital marketing platforms
Social media, email automation and real estate customer relationship management (CRM) platforms allow brokers to stay connected with clients and manage large volumes of communication. A 2024 JLL survey showed 80% of real estate companies plan to increase their tech investment, with a focus on predictive analytics and client engagement.
Digital tools help brokers maintain a personalized relationship with prospective buyers, from first-timers to high-volume investors, throughout the sales funnel.
Education, licensing and growing your expertise
The foundation of a successful brokerage career is education and gaining the right licences, but continuous growth is equally important.
Licensing and entry pathways
To become a broker, candidates must typically hold a current salesperson license, complete a state-mandated number of classroom hours and pass a broker examination. Some states also require 30 days of active experience or a specified number of closed transactions.
Renewing a current broker license involves paying annual or multi-year fees and sometimes completing additional qualifying courses. Brokers must also update their mailing address, proof of insurance and record of formal training if applicable.
Advanced degrees and specialization
University or college qualifications are not a legal requirement everywhere, but having a background in finance, law or real estate adds credibility, particularly for commercial or investment sectors.
For those aiming for leadership roles or entering luxury markets, academic programs such as Glion’s Master’s in Real Estate Finance and Hotel Development provide an edge in strategy, deal structuring and industry knowledge.
Industry networks and continued development
Long-term success also depends on maintaining strong relationships with real estate associations, local boards and peer networks. Active brokers often join groups such as the National Association of Realtors or the Real Estate Institute of Canada.
Attending conferences, contributing to online brokerages or media outlets such as Estate News and Advice and participating in mentorship schemes all help brokers stay relevant, informed and connected.
Conclusion: the broker advantage
Real estate brokers are leaders, educators and innovators who drive the industry forward. With a mix of licensure, experience and digital fluency, today’s brokers serve as trusted advisors and strategic partners across every step of the real estate journey.
In an increasingly complex market where nearly 90% of transactions involve real estate licensees, brokers play a critical role in protecting clients, managing risk and unlocking value. And with younger professionals entering the field and new business models emerging all the time, the career outlook remains bright for those ready to adapt and lead.
Main Image - gettyimages Credit: Oscar Wong
