How Much Does It Cost to Start a Real Estate Agency?
Last updated: May 2026
National Average
Low
$10,000
Medium
$28,000
High
$70,000
Start a real estate brokerage or agency representing buyers and sellers in residential and commercial transactions.
Time to Launch
2-5 months
Profit Margins
25-50%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Real Estate Agency in Nationally
Budget:
$2,500
$1,500
$1,500
$1,500
$3,000
$1,500
$2,000
$6,000
$8,000
Options
Employees:
Startup Costs
$27,500
Monthly Costs
$5,000
First Year Total
$87,500
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $7,700 | $21,560 | $53,900 | $50 | 7.0% |
| West Virginia | $7,700 | $21,560 | $53,900 | $100 | 6.0% |
| Oklahoma | $8,000 | $22,400 | $56,000 | $100 | 4.5% |
| Alabama | $8,100 | $22,680 | $56,700 | $200 | 4.0% |
| Arkansas | $8,100 | $22,680 | $56,700 | $45 | 6.5% |
| North Dakota | $8,200 | $22,960 | $57,400 | $135 | 5.0% |
| Iowa | $8,300 | $23,240 | $58,100 | $50 | 6.0% |
| Kansas | $8,300 | $23,240 | $58,100 | $160 | 6.5% |
| Missouri | $8,300 | $23,240 | $58,100 | $50 | 4.2% |
| South Dakota | $8,300 | $23,240 | $58,100 | $150 | 4.2% |
| Kentucky | $8,400 | $23,520 | $58,800 | $40 | 6.0% |
| Louisiana | $8,400 | $23,520 | $58,800 | $100 | 5.0% |
| Wyoming | $8,400 | $23,520 | $58,800 | $100 | 4.0% |
| Nebraska | $8,500 | $23,800 | $59,500 | $105 | 5.5% |
| Indiana | $8,600 | $24,080 | $60,200 | $95 | 7.0% |
| Michigan | $8,800 | $24,640 | $61,600 | $50 | 6.0% |
| Ohio | $8,800 | $24,640 | $61,600 | $99 | 5.8% |
| New Mexico | $9,000 | $25,200 | $63,000 | $50 | 4.9% |
| South Carolina | $9,000 | $25,200 | $63,000 | $110 | 6.0% |
| Wisconsin | $9,100 | $25,480 | $63,700 | $130 | 5.0% |
| Tennessee | $9,200 | $25,760 | $64,400 | $300 | 7.0% |
| Texas | $9,200 | $25,760 | $64,400 | $300 | 6.3% |
| Georgia | $9,400 | $26,320 | $65,800 | $100 | 4.0% |
| Minnesota | $9,400 | $26,320 | $65,800 | $155 | 6.9% |
| Illinois | $9,500 | $26,600 | $66,500 | $150 | 6.3% |
| Idaho | $9,600 | $26,880 | $67,200 | $100 | 6.0% |
| North Carolina | $9,600 | $26,880 | $67,200 | $125 | 4.8% |
| Pennsylvania | $9,600 | $26,880 | $67,200 | $125 | 6.0% |
| Montana | $9,700 | $27,160 | $67,900 | $35 | 0.0% |
| Utah | $10,000 | $28,000 | $70,000 | $54 | 6.1% |
| Delaware | $10,400 | $29,120 | $72,800 | $110 | 0.0% |
| Nevada | $10,500 | $29,400 | $73,500 | $425 | 6.8% |
| Virginia | $10,700 | $29,960 | $74,900 | $100 | 5.3% |
| Vermont | $10,900 | $30,520 | $76,300 | $125 | 6.0% |
| Arizona | $11,000 | $30,800 | $77,000 | $50 | 5.6% |
| Colorado | $11,000 | $30,800 | $77,000 | $50 | 2.9% |
| Florida | $11,200 | $31,360 | $78,400 | $125 | 6.0% |
| Oregon | $11,200 | $31,360 | $78,400 | $100 | 0.0% |
| Rhode Island | $11,200 | $31,360 | $78,400 | $150 | 7.0% |
| Maine | $11,400 | $31,920 | $79,800 | $175 | 5.5% |
| New Hampshire | $11,700 | $32,760 | $81,900 | $102 | 0.0% |
| Washington | $11,800 | $33,040 | $82,600 | $200 | 6.5% |
| Connecticut | $11,900 | $33,320 | $83,300 | $120 | 6.3% |
| Maryland | $12,100 | $33,880 | $84,700 | $100 | 6.0% |
| New Jersey | $12,500 | $35,000 | $87,500 | $125 | 6.6% |
| Alaska | $12,700 | $35,560 | $88,900 | $250 | 0.0% |
| New York | $13,900 | $38,920 | $97,300 | $200 | 4.0% |
| California | $15,200 | $42,560 | $106,400 | $70 | 7.3% |
| Massachusetts | $15,400 | $43,120 | $107,800 | $500 | 6.3% |
| Hawaii | $19,300 | $54,040 | $135,100 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$21,560
- West Virginia$21,560
- Oklahoma$22,400
- Alabama$22,680
- Arkansas$22,680
5 Most Expensive States
- Hawaii$54,040
- Massachusetts$43,120
- California$42,560
- New York$38,920
- Alaska$35,560
Frequently Asked Questions
Starting a real estate brokerage typically requires a low-to-mid five-figure investment, including broker licensing, MLS/NAR membership, E&O insurance, CRM software, and marketing. A working-capital reserve in the low-to-mid five-figure range is critical for cash flow gaps between closings.
Yes — to operate a real estate brokerage that represents clients and employs agents, you must have a broker's license. Requirements vary by state but typically include 1-3 years as an active agent plus additional coursework and a broker exam.
Agents earn commissions calculated as a meaningful share of the sale price, typically split between buyer's and seller's agents. As a broker, you keep a portion of every agent's commission plus your own commissions. A solo broker completing roughly a dozen transactions at typical mid-market home prices earns well into six figures gross before expenses.
Most brokers start solo, then recruit 2–5 agents in year two. Recruiting spreads overhead but requires training and transaction oversight. Solo practices are simpler but limit transaction volume to one person's time.