| Option | Typical Cost |
|---|---|
| Small / solo | $20,000–$25,000 |
| Small | $33,334–$54,167 |
| Medium | $46,666–$75,833 |
| Large | $75,000+ |
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| Expense | Cost |
|---|---|
| Broker license (exam + courses) | $500–$2,000 |
| E&O insurance | $1,000–$3,000/year |
| Office lease (first year) | $12,000–$36,000 |
| MLS membership | $500–$1,500/year |
| Technology (CRM, website, tools) | $500–$2,000/month |
| Marketing | $5,000–$20,000/year |
Total startup: $20,000–$70,000. A brokerage earns money through commission splits with agents — typically 70/30 to 80/20 (agent/brokerage) for experienced agents, 50/50 for new agents. A 10-agent brokerage with each agent closing 12 transactions/year at $400,000 average price and 2.5% commission generates $1.2M in gross commission. At a 25% brokerage split, that is $300,000 in brokerage revenue. Virtual brokerages (eXp Realty model) eliminate office costs entirely and are the fastest-growing segment. Check if your homeowners or auto insurance policy covers any portion of the expense before paying out of pocket.
The total cost of real estate brokerage depends on your approach to launch. A bootstrapped startup focusing on essentials will spend a fraction of what a fully-equipped operation requires. The key decision is how much infrastructure you need before generating revenue versus what can be added as the business grows.
Ongoing costs are often underestimated relative to startup costs. Monthly expenses like rent, utilities, insurance, software subscriptions, marketing, and payroll add up quickly. Model your monthly burn rate carefully and ensure you have sufficient runway to reach profitability.