What is the Difference Between a Realtor and a Real Estate Agent?

The terms “realtor” and “real estate agent” are often used interchangeably, leading to confusion among those unfamiliar with the difference between them. However, they are distinct designations that reflect different levels of experience, education, and affiliation with professional organizations.

A real estate agent is someone who holds a license to buy or sell real estate and is authorized to represent buyers and sellers in transactions. To obtain a license, a person must complete government-approved courses and pass a state license exam. Once licensed, a real estate agent can work for a brokerage and assist clients with the purchase or sale of property.

A realtor, on the other hand, is a real estate agent who is a member of the National Association of Realtors (NAR), the largest trade association in the United States. To become a realtor, an agent must first obtain a real estate license and then join NAR by paying a one-time application fee and annual membership dues. The term “realtor” is trademarked and can only be used by members of NAR.

In addition to offering access to educational resources, discounts, and career development opportunities, NAR also enforces a code of ethics that realtors must abide by throughout their careers. The code of ethics sets a high standard for realtors and ensures that they are held accountable for their actions in the industry.

Furthermore, a real estate broker is a step above a real estate agent and has completed additional training, passed a broker license exam, and has at least two years of experience as a licensed real estate agent. Brokers are able to run their own brokerage and are not required to split their commission with other offices.

In conclusion, the distinction between a realtor, real estate agent, and real estate broker is important to understand when working with someone to buy or sell property. While all three designations are licensed to participate in real estate transactions, each has different levels of experience, education, and affiliation with professional organizations.