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

When you’re diving into the world of real estate—whether buying your first home or investing in luxury properties—you’ll likely encounter the terms “realtor” and “real estate agent.”

While they are often used interchangeably, they represent distinct roles within the industry. Understanding the difference can help you choose the right professional for your real estate needs.

This guide explores the key distinctions between a realtor and a real estate agent, their unique qualifications, and how to decide who to work with.

Understanding the Basics

What is a Real Estate Agent?

A real estate agent is a licensed professional authorized to assist in buying, selling, or renting properties. They must pass a state-specific licensing exam and complete ongoing education to maintain their credentials.

Agents can specialize in various niches, such as:

• Residential properties
• Commercial real estate
• Property leasing
• Real estate investing

What is a Realtor?

A realtor is a real estate agent who is a member of the National Association of Realtors (NAR), the largest trade association in the U.S. Realtors adhere to a strict Code of Ethics, which sets them apart from non-member agents.

Key Differences Between Realtor and Real Estate Agent

Aspect	Real Estate Agent	Realtor
Membership	Not affiliated with NAR	Member of NAR
Ethical Standards	Follows state laws	Adheres to NAR’s Code of Ethics
Training Requirements	State licensing requirements only	Additional training and certifications offered by NAR
Designation	General term for licensed professionals	Exclusive to NAR members

The NAR Code of Ethics: A Realtor’s Edge

The NAR Code of Ethics is a key distinguishing feature of realtors. It ensures that members operate with integrity, fairness, and professionalism. Some of the principles include:

• Loyalty to Clients: Always act in the best interests of clients.
• Honesty in Advertising: Provide accurate and truthful property information.
• Cooperation with Other Professionals: Work ethically with peers to ensure smooth transactions.

This code provides an additional layer of trust for clients working with a realtor.

Education and Certifications

Real Estate Agent Licensing

To become a real estate agent, one must:

1. Complete pre-licensing courses (varies by state).
2. Pass a state licensing exam.
3. Undergo continuing education to renew the license periodically.

Realtor Training

Realtors receive additional training through NAR, including certifications like:

• Accredited Buyer’s Representative (ABR®): Specializing in representing buyers.
• Certified Residential Specialist (CRS): Focusing on residential sales.
• Seniors Real Estate Specialist (SRES®): Assisting senior clients with unique housing needs.

Roles and Responsibilities

Both realtors and real estate agents perform similar roles, but their approaches might differ based on ethics and training.

Core Duties of Both Professionals:

• Listing properties for sale.
• Assisting buyers in finding suitable homes.
• Negotiating deals on behalf of clients.
• Coordinating with other professionals, such as home inspectors and appraisers.

Why Work with a Realtor?

If ethical standards and advanced certifications matter to you, a realtor might be the better choice. For instance, if you’re a first-time homebuyer, a Certified Residential Specialist (CRS) realtor can provide tailored guidance.

When to Choose a Real Estate Agent vs. a Realtor

Choose a Real Estate Agent If:

• You need basic real estate services.
• Budget constraints are a concern (some non-realtor agents might charge lower fees).
• You’re dealing with a straightforward transaction, such as renting a property.

Choose a Realtor If:

• Ethical standards are a priority for you.
• You’re buying or selling high-value or luxury properties.
• You need specialized services, like senior housing or international transactions.

FAQs: Realtor vs. Real Estate Agent

1. Do all realtors charge higher fees than real estate agents?

Not necessarily. Fees depend on the agent or realtor’s experience, location, and market dynamics.

2. Can a real estate agent become a realtor?

Yes, any licensed real estate agent can apply for NAR membership and become a realtor by agreeing to follow the Code of Ethics and paying annual dues.

3. Are realtors better than real estate agents?

It depends on your needs. Realtors bring additional ethical oversight and specialized certifications, making them ideal for complex transactions.

Finding the Right Professional for Your Needs

To find the right professional:

1. Research Credentials: Check if they are licensed and if they hold any certifications.
2. Read Reviews: Look for testimonials on platforms like Zillow or Realtor.com.
3. Ask Questions: Inquire about their experience, specialization, and approach to client service.

Real-Life Scenario: Realtor vs. Real Estate Agent

Imagine you’re selling a $3 million luxury home in a competitive market. In this scenario:

• A real estate agent might offer general marketing and negotiation skills.
• A realtor with a Luxury Homes Certification could provide advanced market analysis, exclusive listings, and high-end staging expertise.

Choosing the realtor could yield a higher sale price and a faster closing process.

The Future of Real Estate Professionals

With digital transformation and evolving consumer expectations, both realtors and real estate agents are adopting new technologies like:

• Virtual tours and AI-powered property matchmaking.
• Blockchain for secure transactions.
• Data analytics for market forecasting.

These advancements ensure better service, regardless of the designation.

Conclusion

While both realtors and real estate agents help clients navigate the real estate market, their differences lie in ethics, training, and affiliations. Understanding these distinctions can empower you to choose the right professional for your needs.

If ethical practices and advanced certifications resonate with you, working with a realtor might be the way to go. For straightforward real estate needs, a licensed real estate agent could suffice.

Further Reading:

• Joe Williams Shares His Secrets for Success and the Next Big Real Estate Boom
• Becoming a Real Estate Agent – Real Estate Express
• Top 11 U.S. Cities Requiring Over $200,000 Income for Typical Home Purchase

Choosing the right real estate professional is a significant step in achieving your property goals. Make an informed decision and enjoy a seamless journey through the market!