Best Cities to Start a Real Estate Agency in 2026

Starting a real estate brokerage costs $10,000-$50,000 including broker's license and education ($1,000-$5,000), E&O insurance ($1,000-$5,000/year), MLS and NAR fees ($1,000-$3,000/year), CRM and tech stack ($200-$1,000/month), office space ($500-$3,000/month), and marketing ($2,000-$10,000).

Requirements vary by state but typically include: 2-3 years as a licensed real estate agent, completing additional broker education courses (60-150 hours), passing the state broker exam, and meeting any experience requirements (transaction count or volume). Some states allow direct broker licensing without agent experience.

Brokerages earn commission splits from agents (typically 20-50% of agent commissions), desk or monthly fees from agents, transaction fees ($200-$500 per closing), property management fees, and ancillary services (title, mortgage referrals). A brokerage with 10-20 agents can generate $200,000-$1,000,000+ in gross commission income.

Virtual brokerages have 70-80% lower overhead but less agent loyalty and brand visibility. Physical offices build community and attract walk-in clients but cost $2,000-$10,000/month. Many new brokerages start virtual and add a physical presence after reaching 10+ agents and stable cash flow.