When it comes to buying or selling a property, the terms Realtor and real estate agent are often used interchangeably. However, these two are not the same. Understanding their differences can help you make informed decisions and choose the right professional for your real estate needs.
What is a Real Estate Agent?
A real estate agent is a licensed professional authorized to help clients buy, sell, or rent properties. Their license is issued by the state after completing required courses and passing a licensing exam. Real estate agents often work under a broker’s supervision and their expertise can vary based on experience, local market knowledge, and training.
Key Points About Real Estate Agents:
- Licensed by the state to conduct property transactions.
- Must follow state laws and regulations.
- Can work under a brokerage or independently (depending on the license level).
- Expertise may vary depending on experience.
What is a Realtor?
A Realtor is a real estate agent or broker who is a member of the National Association of Realtors (NAR). This membership is not just a title—it comes with a commitment to a strict Code of Ethics and professional standards that go beyond state requirements.
Key Points About Realtors®:
- Must be a licensed agent or broker.
- Membership in NAR is mandatory to use the title “Realtor.”
- Bound by a strict Code of Ethics to ensure integrity and professionalism.
- Often holds additional certifications or designations.
Realtor vs Real Estate Agent: Side-by-Side Comparison
| Feature | Real Estate Agent | Realtor® |
|---|---|---|
| Licensing | State-licensed professional | Licensed agent or broker + NAR member |
| Membership | Not required | Must be a member of NAR |
| Ethics | Must follow state laws | Must adhere to the NAR Code of Ethics |
| Professional Standards | Varies | High emphasis on ethics and professionalism |
| Broker Supervision | Often required | Can work independently or supervise agents |
Why Choosing a Realtor Can Be Beneficial
While all Realtors are real estate agents, their membership in NAR ensures higher professional standards. Clients often prefer Realtors® because they are:
- Ethically accountable: Realtors® are bound by a strict code.
- Trusted advisors: NAR membership signifies commitment to professionalism.
- Better networked: Access to more tools, resources, and listings through NAR.
