What is the Difference Between a Real Estate Broker and an Agent and How Much Does a Broker Make?

There is a lot of terminology in the Real Estate industry and one might wonder what the difference between a real estate agent and a real estate broker is.  Do they make different earnings?

There is plenty of information online about how to become a real estate agent, but you might wonder what does one have to do to become a real estate broker in Utah after they are an agent?

Real Estate Agent vs. Real Estate Broker

When a person first gets their real estate license, they are licensed as a real estate agent.  In Utah and many states, a real estate agent must work for a real estate broker. This is one way to ensure that the agent is getting the supervision to ensure he is doing everything correctly.

A broker, on the other hand, can operate independently without supervision.  Brokers also can set up their own real estate brokerage and have real estate agents working in that firm splitting commissions with the broker for providing supervision, office space and support services.

A real estate broker who owns an agency can also hire other licensed real estate brokers to be supervising brokers in the office to provide the direction to the agents while the owner broker manages the firm.

Does a Real Estate Broker Earn More?

Someone who is a real estate agent might wonder whether it is worthwhile taking a real estate broker’s course to become a real estate broker.  The big question is whether they will make more income by taking the next step.  Is it worth the hassle to become a real estate broker?

National Association of Realtor annual income date from 2016 show that a median income for a sales agent is $33,790 whereas a broker with his agency who is also selling made a median income of $90,990.  Just managing an agency without selling, a broker’s median income was $54,670.

Why would a real estate broker make so much more? A real estate agent is required to work under a broker and must pay a negotiated percentage of his commissions to the broker.  The real estate broker is not only earning full commission on any properties he sells but he is also earning a share of the commissions from the agents he is supervising.

It might be easier for an agent to just have to worry about only what he is doing and selling.  However, there is a business axiom that you never get rich just working for yourself. You do so by having others working for you and making money off what they are doing.

Real Estate Broker License

At this stage, you might be asking what one must do to become a real estate broker.  It varies by state but in Utah, a licensed real estate agent must do the following to be able to apply for a real estate broker’s license.

  • Have at least 3 years of experience working as a real estate agent.
  • Have a minimum of 60 experience points.
  • Take a 120-hour real estate broker course.
  • Pass the Real Estate Broker state examination.

It might sound like a lot of work, but it is a necessary step if one is really considering real estate as a long-term career.  As a real estate broker, you not only would make a higher income, but you will have more control over your destiny.


As a real estate broker, you can make one to two times more in income that you can as a real estate agent.  You can keep all your commission for real estate sales and if you choose to set up your own agency, you earn part of the commissions generated by agents that you are supervising.

Deciding to take the extra education to qualify for a Real Estate Broker’s License is a big decision but an essential step for someone considering a long-term career in real estate.  Choose wisely in selecting a Utah Real Estate Brokers course to get that license to ensure you have all the skills and training necessary to succeed.