Many new people in the property business think “agent” and “Realtor” are synonyms. At first glance, they do look like they can be used interchangeably. However, once you get past the surface, you will see that a large part of the meaning of each word is unique from the others.
As a buyer, seller, or investor, understanding the differences between an agent and a realtor will help you make better decisions and avoid costly mistakes.
We have clearly outlined and explained the difference(s) between agents and Realtors without using technical terminology, so you can confidently determine which type of real estate professional you need to engage.
Realtors are members of the National Association of Realtors (NAR) and must follow a strict Code of Ethics. Buyers and sellers can also review consumer guidance and housing resources from the U.S. Department of Housing and Urban Development (HUD) before making real estate decisions.
Understanding the Role of a Real Estate Agent
Licensed Real Estate Agent Roles
A real estate agent does lots of different things. They:
- Make real estate deals run smoothly.
- Are managed by a Managing Broker or Principal Broker at a brokerage firm;
- Work as a buyer’s agent or seller’s agent, depending on the situation;
- Help with setting prices, open houses, negotiations, and paperwork;
- Explain to buyers the nature of the real estate market and recent market trends.
Agents working with rental, commercial, and residential properties are absolutely indispensable in making complicated real estate transactions straightforward for buyers and sellers.
Real Estate Agent Training
To start your real estate career requires dedication and education:
- Complete all necessary courses through an accredited real estate school (usually online).
- Pass the state-approved license exam.
- Comply with all real estate licensing requirements, including passing all background checks, before being issued a Real Estate license under a sponsoring Broker.
After obtaining their licenses, agents become real estate salespersons or sales agents and advance with experience.
What Is a Realtor and What Makes Them Unique?
What Is the Role of Realtors in the Real Estate Industry?
Realtors are members of NAR, the largest trade association in the United States, the National Association of Realtors. They are:
- Licensed agents
- Licensed brokers
- Property managers
- Professionals in commercial real estate
Their dedication to the NAR Code of Ethics, a stand-alone document outlining their professional obligations, is one of the traits that differentiates them from other agents.
How to Get a Rockstar Realtor?
Here is a basic outline of the minimum requirements to become a Realtor:
- Join a local association affiliated with NAR
- Pay annual membership dues
- Maintain an active real estate license
The perks are quite attractive:
- Participate in Local MLS listings and other marketing initiatives
- Liaise with a large community of real estate professionals
- Enhance your skills with ethics training and other complementary trainings
- Get your questions answered by a well-established realtor association
Most first-time homebuyers, as well as seasoned investors who are a little apprehensive, find this higher level of professionalism quite comforting.
Real Estate Agent vs Realtor: What Sets Them Apart?
Distinguishing between a real estate agent and a realtor is the right first step to save you from confusion and some dollars along the way.
Licensing and Membership Differences
- A real estate agent who is licensed is only required to pass the licensing exam and fulfill the state requirements
- In order to become a Realtor, besides holding the license, a person also needs to be an NAR member and adhere to the NAR Code of Ethics
- Through the NAR Code, a realtor agrees to a higher level of standards and even the standard practice norms
Majorly: Realtor vs real estate agent = Membership + Ethics
Specialized Roles and Ethical Standards
Realtors have the potential to become:
- Broker associates or associate brokers
- Listing agents for the property owners
- Experts in commercial property or property management
On the other hand, agents could be more:
- The buyer’s agent role
- To assist Homebuyers with decision-making in their purchase
Sometimes the gap lies not in ability but in a sense of responsibility and adherence to ethical standards, particularly in situations that create conflicts of interest.
The Importance of Brokers in the Real Estate Business
Each successful agent or realtor should be grateful for the broker who appeared behind the scenes to help them.
Licensed Brokers and Their Responsibilities
Real estate brokers, who have a broker license or a real estate broker license, may:
- Operate their own real estate brokerage
- Supervise and ensure the agents’ compliance
- Close the real estate deals, handling contracts, closing costs, and legalities
They could be:
- Managing Broker
- Principal/designated brokers
- Broker associate
How Brokers Enhance the Real Estate Career
Brokers grant:
- Cases of real estate salespeople, which are still growing, have this as a mentorship
- Commercial real estate and investment experts
- More comprehensive knowledge of the market and strong negotiation skills
Besides helping agents to proficiently guide clients in various types of real estate transactions
Factors to Consider When Hiring a Real Estate Professional
Whether to go with a realtor or a real estate agent will depend on your preferences.
Here are some things you may want to consider:
- The number of years they have worked in the field and their performance
- The level of their understanding of the local real estate market
- Clear discussion of the commission rates, sale price, and closing costs
- Enrollment in NAR or not
- Capability to work in rental properties, residential, or commercial real estate
- How well they communicate, e.g., how quickly they respond, and if their phone number is accessible
At the end of the day, top-notch service counts for way more than a title, but a title can show that someone is dependable.
Choosing the Right Real Estate Professional for Your Needs
Both agents and Realtors have their strengths. However:
- Realtors are typically held to higher ethical standards because of the NAR’s Code
- Agents with an in-depth knowledge of the market can still achieve very good results
- Brokers have more experience and can provide supervision
The appropriate choice is the one that matches your level of comfort, financial plan, and the intricacy of your transaction.
If you are investing in land or looking for property opportunities, having the right mentor is crucial. Get in touch with us today!
FAQs
Q1. Is a realtor better than a real estate agent?
A1. Not really better, but Realtors adhere to the NAR Code of Ethics that might help establish additional trust and accountability.
Q2. Can a real estate agent become a realtor?
A2. Certainly, any agent with an active real estate license is eligible to join NAR and become a Realtor.
Q3. Do realtors charge higher commission rates?
A3. No, not necessarily. Commission rates usually depend on the market and the parties’ agreement, not on the title of the person.
Q4. What should Homebuyers choose, an agent or a realtor?
A4. If ethics and accountability are most important to you, then choose a Realtor. However, A competent agent can still lead you to good results.
Ginis Garcia is a seasoned real estate investor with over 14 years of experience helping both new and experienced investors achieve their goals in the housing and land markets. He started doing deals here and there in 2008. In 2011, He started working for a major real estate investor. He got his real estate license in 2012.
