How Much Do Real Estate Brokers Make in Texas?

The average base salary for a real estate broker in Texas is $77,628. According to Zillow, the housing market all over Texas saw an over 20% increase in home prices. This is because the demand for homes with more space and better neighborhoods grew quickly out of the pandemic.

So, this would explain the friendly-looking real estate broker salary for someone out of Texas. But there is more to the story. Texas actually saw its first $2 Billion agents who broke world records out of Dallas.

Wouldn’t we all like to sell $2 Billion worth of homes in one year? Well, it is certainly a possibility when you become a real estate broker in Texas. So let’s take a deep dive into some of the top earners and which cities make a difference around the state.

A Tour Throughout the Cities

Zillow noted that it wasn’t just big cities that were seeing hot housing market trends and increases in their home value. It was a state as a whole. Having said that with more properties located in a city it can be easier for a broker to sell them than in the middle of nowhere. So let’s take a look at some different areas for comparison.

Dallas

Dallas, Texas is considered to be a different section in terms of real estate than Dallas-Fort Worth. Dallas has an average salary of $80,409 whereas Dallas-Fort Worth reports having an average salary of $78,152. Interestingly enough, Dallas happens to be home to the top real estate agent in the world for the year 2018.

Case Study: Ben Caballero

If someone told Ben Cabellero, owner and broker of HomeUSA.com that he would swell $2,270,911,643 in one year, he’d probably laugh. He has been the #1 ranked real estate agent in the United States for nearly a decade and it’s easy to see why others would want just a fraction of his success. The brokerage is based out of Addison, Texas but actually manages properties all over the state and in major cities like Houston, Dallas, and San Antonio.

Austin

Austin, Texas has been the go-to city for many these last few years thanks to its eclectic scene and a good time. It attracts all demographics which is why it’s a great spot for real estate brokers to make their mark. The average salary here for a Texas real estate broker is slightly higher at $80,524 per year.

Case Study: Matt Menard

Matt Menard is the owner and real estate broker of Austin Real Estate Experts. While he doesn’t have as many transactions as Ben Caballero he certainly still has a lot for the state of Texas. The Wall Street Journal Real Trends ranked him the #2 agent in the U.S. in 2020 and #8 in 2021. His total transactions for a single year were recorded at 483 with a lot of his deals coming right out of the Austin and surrounding area.

El Paso

It’s worth taking a look at El Paso because it is a different city. While it is filled with inhabitants it sits right on the border of Mexico and the general cost of living is lower down here. The average salary for a broker coming out of this area is $68,278. Having said that there are still a few people we can look at who lead very successful careers in the industry.

Let’s quickly note that Dennis Estep of El Paso, was able to make 176 home transactions in a single year. This is still some serious seller commission averaging more than 17 homes a month.

FAQs for Those Looking to Become a Texas Broker

All sorts of questions come to mind when we look at how on real estate broker in Texas can make over $2 billion in sales. It also makes us wonder whether it is worth becoming a broker in the State of Texas and what kind of benefits that means. But without all the answers we may not be ready to jump ship.

It’s common to have some hesitancy even if it is a step upgrade in your career. With more money comes responsibility which is why this section is dedicated to answering the most frequently asked questions about being a Texas real estate broker.

Is it better to franchise as a broker or start from scratch?

One of the most common questions that come up when someone approaches getting their license is whether they should start their own business from scratch or try to pony off of the name of a major recognized real estate brokerage. Both have their advantages and disadvantages. Franchising can cost a lot of money sometimes around $200,000 because you are likely to get a lot of clients just from the name.

However, when you franchise you will have to abide by how they run the company which limits some of the freedom you wish to have as a broker. Some brokers wait to branch out until their portfolio is strong enough to bring their own clients.

How long will it take me to become a broker in Texas?

It is worth checking out our full comprehensive guide on becoming a real estate broker in Texas. Having said that here are the overview facts you should be aware of.

You need to have experience as an agent for four years
You need to surpass the required number of points by the Texas point system
You likely have to take a number of classes to even register for the exam (exempt if you have a bachelors in real estate or other qualified majors)
Pass the exam

The time period is different for everyone based on their experience. You do need some experience as an agent in or to level up.

Can I make more money as an agent or as a broker?

Typically speaking, it is more common to make more money as a broker than it is to be an agent. This is because agents pay their broker’s percentage fees when they close a deal. When you are the broker you are collecting these fees rather than having to pay them. However, a successful agent under a successful broker may earn a better salary than a broker who can’t get their business off the ground. This is why it is important to start a brokerage when you’re ready to do so.

Ready To Earn?

It’s fascinating to look at different real estate brokers in the state of Texas and across the United States as a whole. It’s one of the few positions where you are not limited by the number of hours you have. Salary caps don’t exist which is why many people find themselves trying to figure out just how must real estate brokers make. This number can swing in a variety of directions because brokers really are entrepreneurs.

You might see new brokers in debt and earning a salary of $20,000 a year in Texas while others are closing $2 Billion in sales! That’s crazy to think about! The average however falls around $80,000 which is still a great salary, especially with the cost of living in Texas.

Remember that in order to become a broker you need to put the investment in first. This means both financially and with your time. After you pass the exam and meet the requirements you could be on your way to big-figure salaries like Mr. Caballero!