Do Brokers Make More Than Agents in Ohio?

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real estate broker poses in front of home – do brokers make more than agents in ohio

Yes, real estate brokers typically make more than agents in Ohio. However, the increased commissions come with increased responsibilities. Is it worth getting a broker’s license in Ohio? We’ll answer the question, “How much does a broker make a year?” and help you decide whether earning your broker’s license is worth it.

Key Takeaways

  • In Ohio, real estate brokers typically earn more than agents, with an average gross income of $152,300 annually. This higher income comes with increased responsibilities and the potential for greater control over business operations.
  • Becoming a broker offers advantages such as higher income potential, more control over business operations, and diversified revenue streams. However, it also involves challenges like being responsible for compliance with real estate laws, liability for agents’ actions, and potentially less time spent with clients.
  • Obtaining a broker’s license in Ohio requires completing specific courses and gaining experience.

HOW MUCH DOES A BROKER MAKE A YEAR IN OHIO?

According to the latest income data collected by Colibri Real Estate, the full-time average gross income for a real estate broker in Ohio is $152,300. How does that compare with what you earn as a real estate salesperson? Does this figure inspire you to earn your Ohio broker license?

FACTORS INFLUENCING EARNINGS FOR REAL ESTATE BROKERS

Since you already work in the industry, you understand that the income of a real estate professional depends on your actions and decisions – as well as factors you can’t control. After all, the overall state of the economy and industry may cause peaks and valleys in your earnings. At the same time, working more hours or specializing in an underserved niche can increase your commissions – regardless of the economy.

Here are factors you can control that may influence how much you can make as a real estate broker.

Number of hours you work per week

According to the Ohio real estate income report, a real estate professional’s average income increases steadily the more hours they invest in their business per week. Our income guide shows that those who dedicate 40 to 50 hours a week almost triple the earnings of those who work less than 20 hours.

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 in Ohio are commercial properties and investment properties.

Other factors that influence earnings

Your location and length of time in the industry may also heavily influence your earnings. Growing a real estate business takes time, and the salary data proves this.

Additionally, some Ohio markets are growing faster than others. Take a look at the top real estate markets in Ohio.

Comparing Earning Potential: Brokers vs. Agents

Real estate brokers must have at least two years of experience within the last five years before earning this license designation. There are also transaction requirements. But it’s not simply experience that automatically increases a broker’s earning potential. Here are a few reasons brokers typically earn more than real estate agents.

Brokers earn higher commission splits.

Brokers often can negotiate to keep a larger percentage of their sales commissions. After all, they require less supervision since they can complete transactions independently.

Brokers can own their own firms.

Some brokers establish their own brokerage firms or assume leadership roles in existing ones. This enables them to generate income from the business’s overall profitability, which includes fees from agents, property management, and other brokerage services.

Brokers receive advanced training and education.

If you earned your Ohio real estate license on or after January 3, 1984, you must complete the following courses to earn your broker license:

  • Ohio Real Estate Law (40 hours)
  • Ohio Real Estate Principles & Practices (40 hours)
  • Real Estate Appraisal (20 hours)
  • Real Estate Finance (20 hours)
  • A Financial Management course
  • A Human Resources or Personnel Management course
  • An Applied Business Economics course
  • A Business Law course
  • A minimum of two years of post-secondary education

The information you learn in these courses will enable you to complete more complicated transactions and help you improve your negotiation skills.

Brokers earn more income by providing 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 career decisions.

Advantages of being a broker

Besides higher income potential, here are some additional advantages of becoming a real estate broker in Ohio.

  • Having a broker license makes you more marketable. Clients are more likely to trust brokers 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.
  • Brokers have more control over business operations, policies, and the brokerage’s overall direction. This includes setting commission splits, choosing marketing strategies, and managing the company culture.
  • Brokers can have diversified revenue streams.  Brokers can offer various real estate services, such as property management, training, and consulting. Having other sources of income is essential in a slower real estate market.
  • Running a brokerage can enhance your personal and professional development. Being a broker will allow you to improve your leadership and management skills.

Challenges of being a broker

There are some disadvantages to becoming a broker – even during a hot real estate market.

  • Brokers must ensure their brokerage complies with all local, state, and federal real estate laws and regulations. This can be stressful and time-consuming.
  • Brokers are responsible for their agents’ actions. Legal issues or disputes can result in significant liability and financial consequences for the brokerage.
  • Brokers spend 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, becoming a broker may be worthwhile if you are ready to spend less time with clients.

Is It Worth Getting a Broker License in Ohio?

We have shown that brokers tend to make more money, have more control of their business operations, and can enjoy diverse income streams. However, you may still wonder, “Is it worth getting a broker license in Ohio?” While we can’t answer this highly personal question, we can tell you that becoming a real estate broker is easier than ever. Hondros College can help.

Hondros College offers convenient, flexible, and affordable Ohio broker license courses for those ready to advance their careers. You’ll learn from industry leaders and can complete your degree as a part-time or full-time student. Hondros College also offers payment plans with no fees or interest!

Questions? Contact a Hondros College enrollment advisor for assistance.

Source:

Real Estate & Professional Licensing (REPL). Accessed July 8, 2024. https://com.ohio.gov/divisions-and-programs/real-estate-and-professional-licensing.

 

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