Realtor vs. Real Estate Agent: What’s The Difference?
If you are relatively new to real estate, chances are you have asked yourself about the differences between today’s most popular real estate professions. You may have noticed various industry titles being thrown around, such as real estate agent, Realtor, broker, or salesperson. This can get very confusing, especially as some of these titles are often used interchangeably, even though there are distinct differences. Understanding the distinctions between “Realtor vs. real estate agent,” as well as real estate broker, can clarify what type of real estate professional may best suit your needs.
Difference Between Real Estate Agent And Realtor
The biggest difference between a real estate agent and a Realtor comes down to the certifications for each. You may have heard the terms used interchangeably, and perhaps you have wondered what the difference is between the two. Simply put, while they complete similar jobs, they are held to different standards as established by the National Association of Realtors. To better understand “Realtor vs. agent,” let’s take a closer look at the role of a real estate agent, followed by the role of a Realtor and the qualifications necessary for each.
What Is A Real Estate Agent?
A real estate agent is a professional who assists in the buying and selling properties and has obtained a real estate license to do so. Real estate agents can work with residential as well as commercial properties depending on their specialty. Agents can also practice with a certain focus like a listing or buyer’s agent and a rental agent. The difference between a listing and buyer agent comes down to their primary clientele: listing agents work with sellers to list a home, while buyer’s agents help aspiring homeowners search for properties. On the other hand, Rental agents work with potential tenants to find rental units within a given area.
To become a real estate agent, professionals must pass a state examination after taking the required coursework. Although licensing requirements vary by state, the average real estate agent will have completed 30 to 90 hours of coursework and must become knowledgeable about local, state, and national real estate laws and practices. Depending on the state, agents are often required to continue their education and renew their licenses every one to two years.
What Is A Realtor?
A Realtor is a real estate agent who is an active member of the National Association of Realtors (NAR). Founded in 1908, the NAR is the largest trade association in the United States. Active real estate agents who would like to join the organization must have a valid real estate license and an immaculate professional conduct record. Real estate agents have an incentive to join due to its good reputation, attracting more clients. All Realtors are required to adhere to an extensive Code of Ethics, so consumers may feel at ease knowing that they are working with agents who are thoroughly vetted and have sworn to uphold certain professional standards.
According to the NAR, about half of all real estate agents in the United States are certified Realtors. Many real estate agents choose this path because the organization actively works to protect its members’ interests. As a trade association, the NAR has strong bargaining power in both state and federal governments. This influence can be used to obtain better legal protections and benefits for Realtors across the country. Essentially, while it is not required to become a Realtor, some real estate agents will find this path to be in their best interest.
Two other ways Realtors are different than real estate agents is that they abide by a Code of Ethics as well as 17 additional Articles.