When it comes to buying or selling property, terms like Realtor and real estate agent are often used interchangeably. While both professionals work in the real estate industry, there are some important distinctions between the two roles. Understanding the difference can help you choose the right person to assist with your real estate transactions.
In this article, we will break down the differences between a Realtor and a real estate agent, explore their qualifications, and explain how each can support you throughout the process of buying or selling property.
1. What Is a Real Estate Agent?
A real estate agent is a licensed professional who helps clients buy, sell, or rent properties. To become a real estate agent, an individual must complete the necessary coursework and pass a state exam to obtain their license. Real estate agents are typically employed by a real estate brokerage, which provides the necessary resources and tools to help them conduct transactions on behalf of clients.
While real estate agents assist with the buying and selling process, their role primarily involves representing clients, negotiating deals, providing advice, and handling paperwork related to real estate transactions. However, they may only have limited access to certain industry tools or resources, depending on the brokerage they work with.
Key Responsibilities of a Real Estate Agent:
- Assisting clients in buying or selling properties
- Guiding clients through the process of making offers, negotiating prices, and closing deals
- Showing homes to prospective buyers
- Helping sellers prepare their homes for sale, including staging and pricing
- Preparing and submitting necessary documentation and contracts
While real estate agents play a vital role in the buying and selling process, they do not need to be members of a specific professional organization. This leads us to the next distinction: what makes a Realtor different from a real estate agent.
2. What Is a Realtor?
A Realtor is a real estate agent who is a member of the National Association of Realtors (NAR), a professional organization that enforces a strict code of ethics and provides additional resources to its members. Being a Realtor means the individual has voluntarily agreed to abide by the NAR’s code of ethics, which outlines specific guidelines for fair and professional conduct.
Realtors have access to a wider array of resources and tools than non-Realtor real estate agents. For example, Realtors have access to the Multiple Listing Service (MLS), which is a database that contains detailed listings of properties for sale. This system allows them to stay updated on available properties and share listings with clients, making it easier to find suitable properties or market homes to potential buyers.
Key Responsibilities of a Realtor:
- Similar to a real estate agent, a Realtor assists in buying and selling properties
- Realtors are bound by the NAR’s code of ethics, which sets standards for professionalism and ethical conduct
- Realtors have access to the MLS and other industry resources to better serve clients
- Realtors often have additional certifications or specializations in specific types of real estate transactions (e.g., commercial real estate, luxury homes)
The main distinction between a Realtor and a real estate agent is that all Realtors are licensed real estate agents, but not all real estate agents are Realtors.
3. Key Differences Between a Realtor and a Real Estate Agent
While both Realtors and real estate agents perform similar roles in assisting clients with real estate transactions, the differences lie in their affiliation, professional obligations, and available resources. Here’s a quick summary of the key differences:
1. Membership and Affiliation
- Real Estate Agent: A licensed professional who may or may not be a member of the National Association of Realtors (NAR).
- Realtor: A real estate agent who is a member of the NAR and adheres to their strict code of ethics.
2. Code of Ethics
- Real Estate Agent: Not bound by a specific code of ethics beyond the state licensing requirements.
- Realtor: Must follow the NAR’s code of ethics, which includes principles of honesty, integrity, and professionalism in real estate transactions.
3. Access to Resources
- Real Estate Agent: May have access to some industry tools, depending on the brokerage, but may not have full access to the MLS.
- Realtor: Has access to the MLS and other resources provided by the NAR, allowing them to provide clients with more comprehensive real estate services.
4. Education and Specialization
- Real Estate Agent: Must complete the state-required coursework and pass an exam to obtain a license.
- Realtor: Realtors often continue their education by attending additional training and certifications through NAR, which allows them to specialize in certain types of real estate transactions.
5. Marketability and Credibility
- Real Estate Agent: May not have the same level of recognition or credibility as a Realtor, especially when it comes to clients seeking a high level of professionalism.
- Realtor: Being a member of the NAR adds credibility and can make a Realtor more appealing to clients who want a real estate professional who adheres to a higher standard.
4. Why Choose a Realtor Over a Real Estate Agent?
While both Realtors and real estate agents are qualified to assist with buying or selling property, there are several reasons you may want to consider working with a Realtor:
1. Adherence to Ethical Standards
Realtors are held to a higher standard due to the NAR’s code of ethics, which ensures that they provide honest, fair, and professional service to their clients. If ethical conduct and integrity are important to you, working with a Realtor gives you peace of mind that they are committed to these principles.
2. Access to More Resources
Realtors have access to the MLS, which gives them a competitive edge when it comes to finding properties or selling homes. The MLS is a powerful tool that is only available to members of the NAR, so working with a Realtor ensures you have access to the most up-to-date and accurate information in the market.
3. Ongoing Education and Training
Realtors often pursue additional certifications and specializations in specific areas of real estate. This means that, depending on your needs, you could benefit from a Realtor’s advanced expertise in areas such as commercial properties, luxury homes, or investment properties.
4. Increased Professionalism
Realtors are typically well-versed in the latest real estate trends, laws, and market conditions due to their ongoing education and membership in the NAR. This professionalism can be especially valuable during complex transactions, where expert guidance is required.
5. Do Realtors Have More Legal Protections?
While both Realtors and non-Realtor real estate agents are subject to state laws and regulations governing the real estate industry, Realtors benefit from the additional oversight and legal protections offered by the NAR’s code of ethics. This code includes provisions for resolving disputes, handling conflicts of interest, and protecting both clients and professionals from unethical behavior.
Realtors are also required to maintain professional liability insurance, which offers added protection in case of legal disputes related to real estate transactions. This added security can give clients greater confidence in working with a Realtor.
6. What Should I Look for in a Realtor or Real Estate Agent?
Whether you’re working with a Realtor or a real estate agent, it’s important to find someone who aligns with your needs and has a proven track record of success. Look for a professional who:
- Is experienced and knowledgeable about the local real estate market
- Communicates effectively and listens to your needs
- Has a strong reputation and positive client reviews
- Demonstrates professionalism and a commitment to ethical conduct
- Can provide references or testimonials from past clients
Conclusion
While both Realtors and real estate agents assist with buying and selling properties, the key differences lie in their professional affiliations, access to resources, and adherence to a code of ethics. Realtors, as members of the National Association of Realtors, bring added expertise, ethical standards, and access to valuable tools that can benefit you during your real estate transaction. Whether you choose to work with a Realtor or a real estate agent, it’s important to find a qualified professional who meets your needs and can help guide you through the complexities of the real estate market.
FAQs
1. Do I have to work with a Realtor to buy or sell a home?
No, you can work with a real estate agent who is not a Realtor, but choosing a Realtor may offer additional benefits, such as access to the MLS and adherence to a strict code of ethics.
2. Can a real estate agent become a Realtor?
Yes, a real estate agent can become a Realtor by joining the National Association of Realtors (NAR) and agreeing to abide by their code of ethics.
3. Is it more expensive to work with a Realtor?
The cost of working with a Realtor is generally the same as working with a non-Realtor real estate agent. Realtors typically earn commissions based on the sale price of the property, but their membership in the NAR does not increase their fees.
4. How do I find a Realtor or real estate agent in my area?
You can find a Realtor or real estate agent through referrals, online reviews, or by searching the NAR’s directory of Realtors. It’s important to meet with them first to ensure they’re the right fit for your needs.
5. What are the benefits of working with a Realtor instead of a real estate agent?
Realtors have access to more resources, including the MLS, and are held to a higher ethical standard. This ensures they provide professional and fair service, which can be especially valuable in complex transactions.