The Difference between a Real Estate Agent and a Realtor

When you step into the world of real estate, either as a first-time home buyer or with previous experience, you'll encounter two key players: real estate agents and Realtors^® (which you will also see written as REALTOR^®s). Though many use these terms interchangeably, there are some important distinctions between the two. While they share many of the same roles and responsibilities in guiding you through the buying or selling process, the difference is in their affiliations and official ethical codes. (We'll get into this more in a bit.)

Whether you're a homebuyer, a seller, or even eyeing a career in real estate, understanding the differences between agent vs. Realtor is crucial. This knowledge will help you make informed decisions and ensure you find the right support for your real estate needs. Let's dig into how these roles differ so you'll be armed with accurate information.

What is a Realtor?

The Realtor Distinction

Many people think all real estate agents are Realtors. However, a Realtor is a licensed real estate agent who is also a member of the National Association of Realtors (NAR). NAR has legally trademarked the word Realtor to define a real estate professional who is a member of the organization and subscribes to its code of ethics.

This is the key difference between Realtors and real estate agents. This membership requires them to uphold the NAR's standards, emphasizing professionalism, client interest, and ethical standards. Not sure what that means? Here are a few examples of potential ethical issues:

• An agent could encourage a buyer to make an offer on a home if they're also the selling agent on that same home. This dual agency is legal in many states, but pushing a buyer this way could be considered unethical because it may not represent the buyer's best interest.
• An agent might use older photos of a home they were selling when it was in better condition. This could be considered deceptive marketing, which is unethical and may be illegal.

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What is a Real Estate Agent?

Roles and Responsibilities

Real estate agents are professionals licensed to assist in buying or selling property. Your agent will guide you through listings, negotiations, and transactions to ensure everything goes smoothly. They represent your needs and interests, whether you're a buyer or a seller.

Qualifications and Licensing

To become a real estate agent, one must complete several courses and pass a licensing test. The requirements vary by state, but all agents must adhere to state-specific real estate laws and regulations.

Agent vs. Realtor: Similarities and Differences

Are all real estate agents Realtors? It's a common question, and agents and Realtors have many similarities. Both must fulfill state-specific educational requirements and pass a licensing exam. All agents are bound by state laws and regulations, regardless of whether they are members of NAR. They also have access to the Multiple Listing Service (MLS), which has vital tools for listing and finding properties.

The difference is where things get a little more intricate:

• Code of ethics: While agents and Realtors must adhere to real estate law, the National Association of Realtors has a stringent code of ethics. As members, all realtors are required to follow this code – and while many real estate agents do, they aren't required to unless they're members of the NAR.
• Listing benefits: While all agents have access to the Multiple Listing Services, realtors may have a more extensive network. It's one of the benefits of being a Realtor vs. a real estate agent. There are exclusive Realtor resources, including a more extensive MLS system. These networks and additional connections can be helpful during a transaction.

While those may be a couple of the broader benefits of hiring a Realtor vs. a real estate agent, that doesn't mean a Realtor is always the right choice. Many real estate agents follow a similarly high standard of ethics, and finding the right person to work with may be more important for you than their membership in NAR.

How Should I Decide?

Whether you work with a Realtor or a real estate agent, the same factors apply when weighing your options. Consider the following to help with your choice:

Experience and track record: Whether you work with a real estate agent or a Realtor, their experience matters. Choose a professional you've heard good things about or who you personally know and trust. Alternatively, knowing that a Realtor adheres to the NAR code of ethics may provide extra comfort.

Local market knowledge: Choose a Realtor or agent who's local to your area or at least knows it well. They'll better understand home values in your city, fair asking prices, and even neighborhoods with features you care about.

Communication: When it comes to communication, it's important to find a real estate pro with a communication style that works for you. You should also know their availability to ensure they're available at times that work for you.

Reviews and references: If possible, choose an agent referred to you by a trusted friend or family member. If not, check out online reviews. They may help you select an agent who's a good fit. You may elect to meet several before you decide whom to hire.

Related: Guide to selecting the best home warranty

Ask About Real Estate Home Warranty

Whether you're buying or selling a home, your agent can set you up with home warranty coverage. If you're selling, the warranty will cover your home for the listing period. And if you're buying a home, the coverage for your new home begins as soon as the keys are in your hands. To learn more, check out our article on Real Estate Home Warranties.

Are you a real estate agent or Realtor? Check out these resources:

Real Estate Agents and Home Warranties

The contents of this article are provided for general guidance only. First American Home Warranty does not assume any responsibility for losses or damages as a result of using this information.