REALTOR® vs. Real Estate Agent: What's the Difference?
A REALTOR® is a licensed real estate agent who is an active member of the National Association of REALTORS®.
You’ve likely heard the terms “REALTOR®” and “real estate agents” when discussing a licensed professional who assists buyers and sellers with their real estate transactions. Have you ever wondered what the difference was between a REALTOR® and real estate agent?
It can be unclear whether or not these terms mean the same thing, or if there is something that differentiates a REALTOR® from a real estate agent.
Buyers and sellers who will be hiring a real estate professional to guide them through their real estate transaction processes should know the difference between a REALTOR® vs. real estate agent. This understanding will help you choose the right professional to represent you in your upcoming home purchase or sale.
What Defines a “Real Estate Agent?”
A real estate agent is a professional who has been trained and licensed to assist buyers and sellers with their real estate transactions.
Real estate agents most often work for a larger real estate team called a brokerage, which is led by a real estate broker.
At the onset of a real estate deal, a buyer or seller hires a real estate agent to represent them in the transaction. The real estate agent creates a custom strategy for their client, helping them establish, progress, and close their transactions. Real estate agents are paid on commission from the transactions they complete.
To legally work as a real estate agent, the agent must follow the state’s guidelines for obtaining a valid real estate license. This typically includes completing educational courses for a set amount of hours and passing a state licensing exam for real estate.
Once licensed, a real estate agent may work to sell or rent buildings, properties, and land for clients. A residential real estate agent works with consumers and residential properties, while a commercial real estate agent works with businesses and commercial properties, such as retail, industrial, or office buildings.
Real estate agents may represent more than one client at a time. A successful agent helps their clients achieve their transaction goals while fostering a streamlined and efficient transaction process.
What Does “REALTOR®” Mean?
Once a real estate agent has their active real estate license, they have the option to join the industry’s trade association. The official real estate trade association in the United States is the National Association of REALTORS®, commonly known as NAR.
The term “REALTOR®” is the official title of an agent who is a member of the National Association of REALTORS®. In that context, REALTOR® has a trademark symbol when written.
As a member of the National Association of REALTORS®, REALTORS® have vowed to abide by the strict NAR Code of Ethics.
NAR provides access to continuing education courses, ensuring that its members are at the cutting edge of the real estate service industry. NAR also offers training and professional designations and certifications for special skills, such as:
- Accredited Buyer's Representative / ABR®
- Accredited Land Consultant / ALC
- Certified Residential Specialist / CRS
- NAR's GREEN Designation / GREEN
- Seniors Real Estate Specialist® / SRES®
REALTOR® vs. Real Estate Agent: What’s Right For You?
Both titles, real estate agent and REALTORS®, identify talented real estate experts who have been trained to help buyers and sellers navigate their transactions.
Now that you know the difference between REALTOR® vs. real estate agent, here are some considerations that can help you decide which is the best fit for you.
You may want to choose a REALTOR® if:
- You’re a first-time home buyer or seller who wants additional support for their transactions.
- You have unique personal circumstances that may impact your transaction.
- Your local market is highly competitive and favoring the position of the opposite transaction party. For example, you’re buying a home in a hot seller’s market.
- You require a real estate professional with specialized knowledge, skills, and training. For example, if you’re in the military and relocating to a new city, it could be beneficial to work with a REALTOR® who has NAR’s Military Relocation Professional certification.
You may want to choose a real estate agent if:
- You’re an experienced home buyer or seller.
- Your upcoming transaction is relatively simple and straightforward.
- Your market activity is balanced or in your best interest. For example, you’re buying a home when the market is favoring buyers.
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