Real Estate Agent vs. Realtor: What's the Difference?

Compare Real Estate Agent vs. Realtor

When dealing with the intricate world of real estate, it becomes quite common to hear terms like real estate agent and Realtor. These two professionals, although most of the time used interchangeably, have some marked differences, specifying their functions based on different qualifications and responsibilities. You will be better placed to make the right call of moves when buying or selling, knowing the difference between a real estate broker and a Realtor. The two key terms appearing in the above definitions helped define: real estate agents and Realtors.

Human Relations: Understanding Real Estate Agents

A real estate agent is a professional who is licensed to help people buy, sell, or rent property. Some steps to becoming a real estate agent include completing pre-licensing education, working in different aspects of real estate, and then passing a state exam to become licensed under the state's real estate governing body. How to actually become a licensed real estate agent varies from state to state, but it generally involves courses on real estate principles, practices, and laws.

Real estate agents may represent either a buyer or a seller. An agent on the seller side is known as a listing agent, while an agent representing a buyer is referred to as a buyer's agent. Real estate agents engage in a lot of work like marketing properties, negotiating deals and contracts, advising clients during the process of a transaction, and so many other things. They are compensated a commission that is usually a percentage of the property's price, and this is shared between the buyer's agent and the listing one.

Define a Realtor

What is a Realtor? It is a member of the National Association of Realtors (NAR), the largest trade association of the United States. To be a Realtor, one must enjoin himself to the membership of NAR and keep himself to its Code of Ethics and Standards of Practice, which are at very strict levels. The code offers higher ethical standards, considerations for a number of parties, and deals with the duties a licensee owes to their clients, the public, and other licensees.

As a Realtor, one enjoys a number of privileges that accompany the membership to NAR: professional development, market data, and various tools and resources that help deploy it in serving the clients best. Being a Realtor signifies an individual's commitment to ethical practices and furthering education within the profession. This membership sets a Realtor apart in terms of proven credibility and professionalism indicated thus far by that real estate practitioner.

Differences Between Real Estate Agents and Realtors

The main difference between a real estate agent and a Realtor is the professional bodies to which they are members. All Realtors are real estate agents, but not all real estate agents are Realtors. Realtors carry higher accountability because of their membership in the NAR and are mandated by a professional code of conduct. This adherence to ethical behavior and professionalism can be a big positive for clients in need of a trustworthy and highly informed representative in this area of real estate.

Apart from this, being a Realtor and being affiliated with the NAR makes them more adequate in marketing properties, finding the right listing for clients, and staying updated about the trends within that specific industry and within new laws that could affect that specific industry. Such resources can give a Realtor an edge in the provision of all-inclusive services to clients.

Who Pays the Real Estate Agent Commission?

Choosing Between a Real Estate Agent and a Realtor

So, whether one needs a real estate agent or a Realtor all comes down to the level of service and ethical standards one demands. Realtors—because they follow the NAR's Code of Ethics and have more at their disposal—may just bring higher levels of professionalism and experience to the table. This can be particularly valuable in complex transactions or competitive markets where extensive knowledge and ethical conduct are crucial.

Many very competent real estate agents operate in business without being a Realtor, but many different Realtors' provide very high levels of professional competency. The important point here is to check the validity of claims of competence and ethical standards by interviewing and researching in depth into the background, ethics, and competencies of the professional desired, be he or she a Realtor or a real estate sales agent. Ensure to look for those with positive client reviews, who have a good track record in your area, and who clearly show a commitment to ethical practices.

The Difference Between Real Estate Agents, Brokers, and RealtorsⓇ

Conclusion

One should understand the difference between the real estate agent and the Realtor to facilitate making an informed decision in the real estate market. A real estate agent or Realtor can help one buy, sell, or lease the property, with the only difference between these two being the affiliation of the latter with the National Association of Realtors, which follows a strict Code of Ethics. This promise of above-code ethics and the availability of more tools and resources can be extra helpful to the client. By laying out your needs and desires, you can then determine which real estate expert will best be able to help you through this most important process.

References

National Association of Realtors. (2023). "Code of Ethics & Professional Standards." Accessed from https://www.nar.realtor/about-nar/governing-documents/code-of-ethics

Investopedia. (2022). "Real Estate Agent vs. Realtor: What's the Difference?" Accessed from https://www.investopedia.com/articles/mort

Realtor.com. (2023). "What Is a Realtor?" Retrieved from https://www.realtor.com/advice/buy/what-is-a-realtor/

The Balance. (2023). "What Is a Real Estate Agent?" Retrieved from https://www.thebalance.com/what-is-a-real-estate-agent-1798901

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