If you’re planning to buy or sell a home, you’ve likely encountered the terms “real estate agent” and “Realtor.” At first glance, these titles may seem interchangeable. However, there are distinct differences between them that can significantly affect your real estate experience. Understanding these roles is crucial for making informed decisions and ensuring you work with the right professional.
In this article, we’ll break down the definitions, responsibilities, qualifications, and ethical obligations that separate a real estate agent from a Realtor. We’ll also explore how these differences can impact buyers, sellers, and industry professionals alike. By the end, you’ll have a clear understanding of the topic: Real Estate Agent vs Realtor – What’s the Difference?
What is a Real Estate Agent?
Definition and Role
A real estate agent is a licensed professional who helps clients buy, sell, and rent properties. They act as intermediaries between buyers and sellers and assist in negotiating deals, handling paperwork, and facilitating property transactions.
Licensing Requirements
To become a real estate agent, individuals must:
- Complete state-approved pre-licensing education
- Pass a state licensing exam
- Submit a background check
- Affiliate with a licensed real estate broker
The specific requirements can vary by state, but all agents must hold a valid license to legally practice real estate.
Responsibilities
Real estate agents are involved in nearly every stage of a property transaction. Their duties often include:
- Listing and marketing properties
- Conducting open houses
- Coordinating showings
- Advising clients on offers and negotiations
- Preparing contracts and disclosures
- Assisting through inspections and appraisals
Agents typically specialize in residential, commercial, or rental properties and work under the supervision of a licensed broker.
Types of Real Estate Agents
- Buyer’s Agent: Represents the interests of the buyer in a real estate transaction.
- Seller’s Agent (Listing Agent): Works on behalf of the seller to list, market, and sell a property.
- Dual Agent: Represents both buyer and seller in a single transaction (only legal in certain states).
- Transaction Coordinator: Assists with documentation and communication but doesn’t represent either party directly.
What is a Realtor?
Definition and Trademark
A Realtor is a real estate agent or broker who is an active member of the National Association of Realtors (NAR). The term “Realtor” is a registered trademark and can only be used by members who adhere to NAR’s strict Code of Ethics.
NAR Membership
To become a Realtor, an agent must:
- Hold an active real estate license
- Join a local Realtor association
- Pay annual dues to NAR
- Complete ethics training every three years
This membership provides Realtors with valuable resources and professional development opportunities.
Code of Ethics
One of the most significant differences is the obligation to follow the NAR Code of Ethics. This code includes 17 articles that govern how Realtors interact with clients, the public, and other real estate professionals. Key principles include:
- Honesty and integrity
- Loyalty to clients
- Disclosure of conflicts of interest
- Fair treatment of all parties
Realtors are held to these standards by their local association and can face disciplinary action for violations.
Advantages of Working with a Realtor
Realtors often have access to additional tools and services, such as:
- Comprehensive Multiple Listing Services (MLS)
- Market data and research tools
- Legal assistance and professional development
- Enhanced marketing support
These resources can give Realtors an edge in representing clients more effectively.
Real Estate Agent vs Realtor – What’s the Difference?
Although every Realtor is a real estate agent, not all real estate agents are Realtors. Here are the core distinctions:
Feature |
Real Estate Agent |
Realtor |
|---|---|---|
Licensing |
Required |
Required |
NAR Membership |
Not required |
Required |
Code of Ethics |
Varies by state |
Mandatory under NAR |
Use of “Realtor” Title |
Prohibited |
Permitted |
Access to NAR Tools & Training |
Limited |
Full Access |
Ethical Standards |
State-regulated |
NAR-regulated (national) |
Why This Matters
Working with a Realtor means partnering with a professional who is committed to higher standards and ongoing education. For clients, this can lead to smoother transactions, more ethical representation, and better overall outcomes.
Understanding Real Estate Brokers
What is a Broker?
A real estate broker is someone who has completed additional education and licensing beyond that of an agent. Brokers can work independently, open their own brokerage, and supervise other agents.
Types of Brokers
- Principal Broker: Holds the highest license and manages the brokerage firm.
- Managing Broker: Oversees office operations and agent performance.
- Associate Broker: Has broker credentials but works under another broker.
Broker vs Agent vs Realtor
Role |
License Required |
Can Operate Independently |
NAR Membership Optional |
Agent |
Yes |
No |
Yes |
Broker |
Yes (Advanced) |
Yes |
Yes |
Realtor |
Yes |
Maybe (if also a broker) |
No (Required) |
While many brokers are also Realtors, not all choose to join NAR. Membership remains optional unless they want to use the Realtor title and access associated benefits.
Benefits of Working with a Broker
Working with a broker (especially one who is also a Realtor) can provide advantages such as:
- Higher level of experience and training
- Ability to resolve complex issues
- Supervision of junior agents
- Direct access to decision-making authority
Why the Difference Matters to Consumers
Ethical Commitment
Realtors must abide by the NAR Code of Ethics, ensuring greater accountability and a strong commitment to professional conduct. This code protects consumers by setting expectations for honesty, loyalty, and transparency.
Superior Access to Resources
Realtors may have more comprehensive tools at their disposal:
- Up-to-date MLS listings
- Property valuation tools
- Legal and contract assistance
- Real estate technology platforms
These resources enhance their ability to price, market, and close deals efficiently.
Disciplinary Oversight
Realtors are held to a strict standard by their local boards and NAR. Consumers who experience unethical behavior can report it and expect a formal review. This structure adds a level of accountability that may not exist with non-Realtor agents.
Informed Negotiation
Training and ethical guidelines often equip Realtors to manage negotiations more effectively. This can lead to better deals, fewer disputes, and smoother closings.
Consistency Across Markets
Because the NAR Code of Ethics is a national standard, clients can expect a similar level of professionalism from Realtors regardless of geographic location.
How to Choose Between a Real Estate Agent and a Realtor
Step 1: Verify Credentials
Start by confirming whether your agent is a Realtor. Ask directly or check their status on the NAR website. Many professionals will display the Realtor® logo in marketing materials.
Step 2: Review Track Record
Examine their experience, reviews, and recent transactions. Look for specialization in your property type or neighborhood.
Step 3: Ask About Ethics
Find out how they handle dual agency, conflicts of interest, and client confidentiality. This helps gauge their commitment to ethical conduct.
Step 4: Understand Their Network
Ask whether they have relationships with lenders, inspectors, attorneys, or contractors who can help facilitate a successful transaction.
Step 5: Match to Your Goals
Whether buying or selling, choose someone who understands your goals, timeline, and preferences. A strong personal and professional fit can be just as important as credentials.
Frequently Asked Questions
Can all real estate agents become Realtors?
Yes. Any licensed real estate agent can join NAR and become a Realtor by agreeing to follow the Code of Ethics and paying annual dues.
Is a Realtor better than a real estate agent?
While both can provide excellent service, Realtors offer added benefits such as ethical oversight, enhanced tools, and continuing education. These advantages can contribute to a more professional experience.
Are all Realtors real estate agents?
Most are, but some Realtors are also brokers or appraisers. What unites them is their NAR membership and ethical obligations.
Can a real estate agent call themselves a Realtor without NAR membership?
No. The term Realtor is trademarked and restricted to active members of the National Association of Realtors.
How can I verify if someone is a Realtor?
Check the NAR website or contact your local real estate board for confirmation.
What is the benefit of the MLS and do all agents have access?
The MLS (Multiple Listing Service) is a tool used to share property listings among agents. While some agents may have access through their brokerage, Realtors typically have full MLS access, offering a broader selection of listings and faster updates.
What happens if a Realtor violates the Code of Ethics?
NAR has a formal process for investigating complaints. Violations can result in penalties ranging from reprimands to suspension or expulsion from the association.
Conclusion
Understanding the distinction between a real estate agent and a Realtor can greatly enhance your real estate journey. While both are licensed to guide you through buying or selling property, Realtors offer a deeper level of professionalism, ethical commitment, and access to valuable resources.
When asking yourself, Real Estate Agent vs Realtor – What’s the Difference?, remember that working with a Realtor means more than hiring a salesperson. It’s about aligning with a professional who is bound by a nationally recognized code of ethics and supported by ongoing training and tools.
Choosing the right real estate professional is an investment in your financial and personal goals. Ask the right questions, do your research, and make an informed decision based on your specific needs and expectations.
Whether you work with a real estate agent or a Realtor, the most important factor is their dedication to representing your best interests. Make that your top priority when making your choice.
