How Much Do Real Estate Brokers Make in Washington State?
Are you looking to earn more income? If so, real estate may be the career for you. But before you make the switch, you may wonder how much you can realistically expect to earn as a real estate professional.
This article outlines how much you can expect to earn as a licensed Washington real estate broker, how real estate brokers get paid, and which factors influence their income.
What Factors Go into
a Real Estate Broker’s Salary?
Understanding the factors that affect earning potential is essential for achieving long-term success for those just starting in the real estate industry. Three of the biggest factors affecting real estate broker income are years of experience, location, and commission rate.
Broker experience
One of the most significant factors influencing real estate broker income is years of experience. Typically, the more experience you have, the greater your income potential. The table below outlines the median annual income for Washington real estate brokers by years of experience.
Income By Real Estate Broker Experience
| Years of Experience | Median Annual Income |
| 0-1 | $128,000 |
| 1-3 | $139,000 |
| 4-6 | $155,000 |
| 7-9 | $157,000 |
| 10-14 | $159,000 |
| 15+ | $165,000 |
Location
Another factor contributing to broker income is location. Typically, brokers who work in areas with higher home prices earn more, which makes sense, considering most brokers work on commission. Thus, the higher the sale price, the higher the commission.
According to Indeed, the following are the highest-paying cities in Washington state for real estate brokers.
Highest-Paying Cities for Washington Real Estate Brokers
| City | Average Annual Income |
| Kirkland, WA | $115,391 |
| Everett, WA | $109,145 |
| Seattle, WA | $105,266 |
| Spokane, WA | $100,866 |
| Bellevue, WA | $96,371 |
| Bellingham, WA | $87,337 |
Commission rates
The vast majority of real estate brokers work on commission, meaning they earn a percentage of the proceeds when a real estate deal closes. Based on a survey of Washington real estate brokers, the typical commission rate in Washington is 5.25%, with the listing agent receiving approximately 2.75% and the buyer’s agent receiving approximately 2.51%. However, it’s important to remember that commission rates are negotiable. Top brokers can usually set a higher commission rate since they have a proven track record of success
Here’s what you can expect to earn as a broker for the median home price in Seattle, Washington, with a typical commission rate.
Typical Commission Rates for Washington Real Estate Brokers
| Median Home Price in Seattle, WA | Commission rate at 5.25% | Buyer’s agent commission (2.51%) | Seller’s agent commission (2.75%) |
| $824,995 | $43,312 | $20,625 | $22,687 |
Be advised that most brokers have a commission split agreement with their brokerages, so the broker doesn’t receive the full commission amount.
How Much Do Top Real Estate Brokers Make in Washington?
According to Glassdoor, the median total pay for real estate brokers in Washington (based on over 8,400 reported salaries) is $197,000. However, that’s just the median. Top earners reported earning up to $263,000 annually. Keep in mind that in real estate, there is no cap to your earning potential.
So, what does it take to be a top earner? Top real estate brokers typically work many hours each week, especially in the beginning, to generate a continuous funnel of clients. Additionally, top brokers work with high-earning clients who own high-end or luxury homes. This market tends to be more competitive, especially for newly licensed brokers. Luckily, Rockwell Institute’s sister school, The Institute for Luxury Home Marketing, offers training from industry experts to help you break into this lucrative market.
Do Real Estate Brokers Make a Base Salary or Hourly Pay?
Typically, real estate brokers do not earn a base salary or hourly wage. Instead, they receive a commission, which only results in the event of a sale. However, depending on the contract between the broker and the client, brokers may receive compensation if the client takes their home off the market.
While most brokers have a commission-based compensation agreement with their brokerages, some, like Redfin, offer brokers a base salary plus bonuses earned from real estate transactions. This compensation model may be more attractive to newly licensed brokers looking for guaranteed income as they start out.
How Long Does it Take to Start Earning Money as a Real Estate Broker?
Real estate brokers start earning money once they close a deal, which could happen in the first week of receiving your license. Alternatively, it could be months before you receive your first check. While some factors (such as the strength of the local market) are out of a broker’s control, there are some factors you can control to start earning as soon as possible. For instance, choosing a brokerage that provides training or mentoring can help new brokers start their careers on the right foot. Fortunately, Rockwell Institute offers students access to Career Expos, facilitating networking with local brokerages.
Additionally, it may be a good idea to have some money saved up (typically 2-3 months’ worth of expenses), just in case it takes a while for you to get that first commission check. This financial buffer will help alleviate some of the stress of starting a new career. The important thing is not to get discouraged. Since real estate is a largely referral-based industry, once you get your first client, they will likely recommend you to friends and family, creating a steady stream of future clients.
Do Real Estate Brokers Get Benefits?
Some brokerages offer benefits such as health insurance and employer-sponsored retirement plans. However, real estate is considered an entrepreneurial career, so it’s not uncommon for brokers to cover benefits that a corporate employer would typically cover.
How Rockwell Institute Can Help You Meet Your Income Goals
Starting a new career can be intimidating, but you don’t have to go it alone. With over 50 years of experience in real estate education, Rockwell Institute has helped more than 150,000 students launch successful careers in Washington real estate. Start your real estate career today!
Source:
“The Average Washington Real Estate Commission: 2024 Data.” Clever Real Estate, May 17, 2024. https://listwithclever.com/average-real-estate-commission-rate/washington/.
Start Your Real Estate Career Today
Starting a new career can be daunting, but you don’t have to go it alone. At Rockwell Institute, we’re dedicated to helping you build a successful real estate career.
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