Are you confused about the difference between a Realtor and a real estate agent? A quick fact: Not all agents are Realtors, but all Realtors are real estate agents. This article will clear up this confusion by explaining these roles in simple words.
Keep reading to learn more about the difference between a realtor and real estate agent!
Key Takeaways
- Realtors are members of the National Association of Realtors (NAR) and must follow a strict Code of Ethics.
- Real estate agents help rent, buy and sell real estate properties but aren’t required to join NAR or follow its code.
- Becoming a Realtor has costs like 2024 NAR dues of $201 but offers benefits such as better marketing tools and resources.
- Both real estate agents and Realtors earn income through commissions from property sales.
- A good agent connects buyers with sellers, which is why they are also referred to as a seller’s agent; a good Realtor also commits to ethical standards.
Defining Real Estate Agent and Realtor
A real estate agent helps people buy, sell, or rent real estate properties. A Realtor is a member of the National Association of Realtors (NAR) and follows their Code of Ethics.
Defining a Real Estate Agent
A real estate agent is a professionals engaged in the real estate business. They are licensed to help people buy, sell, or rent properties. Agents can work in several sectors like residential, commercial, rental, or industrial real estate. Working with a real estate agent is advised for individuals who require related to real estate domain.
To become a real estate agent, one must complete a specific number of hours of real estate coursework and pass a real estate exam, i.e., a licensing exam. They also need to pass a background check. Real estate agents play a key role in the market by connecting buyers and sellers.
Defining a Realtor
A Realtor is a member of the National Association of Realtors (NAR). This group requires members to follow a strict Code of Ethics. Only NAR members can use the term Realtor, making it a trademarked designation exclusive to them.
Being part of NAR gives Realtors access to extra resources and tools. These include marketing support, real estate market data, and political action committees. A Realtor can work in areas like home inspections or property management with these real estate pros or benefits. Their goal is often to make real estate transactions smoother for their clients.
Realtor vs Real Estate Agent: Main Difference Between A Realtor and Real Estate Agents
Realtors have a closer link to the National Association of Realtors (NAR). Real Estate Agents are not required to join NAR or follow its strict Code of Ethics.
Relationship with the National Association of Realtors (NAR)
Real estate agents can choose to join the NAR. NAR is the largest trade group in America, with over 1.5 million members. It was founded in 1908 and has grown since then. To join, agents must pay membership dues. For 2024, these dues are $154 plus a special fee, making a total of $201.
Members get many benefits from joining NAR. They gain access to resources like training and marketing tools. They also have access to multiple listing services (MLS). This helps them better serve their clients in buying or selling homes.
Commitment to the Code of Ethics as a Real Estate Professional
Realtors must follow the National Association of Realtors®’ (NAR) Code of Ethics. This code was adopted in 1913 and has 17 articles. The rules cover duties to clients, customers, the public, and other Realtors.
The Code ensures ethical conduct and professionalism. Realtor® members promise to act fairly toward all parties in a transaction. They also commit to maintaining trust funds, like escrow accounts, properly. Following these guidelines helps protect consumers during homebuying or selling processes.
Educational Requirements for Realtors and :Licensed Real Estate Agents
Both real estate agents and Realtors must meet educational requirements. Real estate agents must complete specific coursework for their state. They also have to pass a state real estate licensing exam. This education covers topics like contracts, property laws, and most importantly how to practice real estate.
Realtors go a step further in their education by joining the National Association of Realtors (NAR). They follow the NAR’s Code of Ethics and may take extra professional development courses. These real estate courses help them stay updated on all things happening within the real estate industry, including trends, and improve their skills. Joining local associations related to the real estate business is also necessary for becoming a Realtor, adding more layers to their qualifications.
Roles and Responsibilities in Real Estate
Real estate agents and Realtors both help clients buy, sell, or rent homes. They show properties, negotiate prices, and handle contracts at real estate firms.
Responsibilities of a Real Estate Agent
Real estate agents help clients buy, sell, or rent properties. They conduct market research and property evaluations to give accurate prices. Agents show properties to potential buyers or renters and negotiate real estate dealings. They also prepare real estate contracts and ensure all paperwork related to any piece of real estate is done correctly. Some agents specialize in residential, commercial, rental, or industrial real estate.
Real estate agents may also help with credit checks for tenants or manage leasing agreements. Agents often use the Multiple Listing Service (MLS) to find the best matches for their clients’ real estate needs. This helps them provide up-to-date real estate listings and property information.
Responsibilities of a Realtor
A Realtor performs the same tasks as a real estate agent. They help clients buy, sell, or rent properties. Realtors must also follow the National Association of Realtors (NAR) Code of Ethics. This code ensures they act honestly and fairly in all transactions.
Realtors have access to NAR’s resources and network. They utilize extra marketing tools provided by NAR for better property listings and advertising campaigns. Continuous professional development is crucial for a Realtor’s success, so they often take additional courses offered by NAR to stay current in the market.
Financial Considerations
Real estate agents and Realtors often earn through commissions. Becoming a Realtor involves extra costs but offers more advantages.
Compensation of Real Estate Agents
Real estate agents earn income through commissions from real estate sales. Below is a detailed breakdown of the compensation of a real estate salesperson:
| Detail | Information |
|---|---|
| Commission Rate | 5% to 6% of sale price |
| Split with Broker | Ranges from 50-50 to 80-20 |
| New Regulation Effective | August 17, 2024 |
Costs and Advantages of Becoming a Realtor
Becoming a Realtor involves certain costs and offers specific advantages. The table below outlines these aspects:
| Aspect | Details |
|---|---|
| Costs | NAR membership dues for 2024 are $154. Additional special assessment brings the total to $201. Local real estate association dues vary by region. Continuing education expenses are required. |
| Advantages | Access to NAR’s professional development opportunities. Exclusive marketing tools. Competitive edge due to adherence to the Code of Ethics. Networking opportunities through local realtor associations. |
Comparing Earnings: Realtors versus Real Estate Agents
Comparing the earnings of Realtors and real estate agents reveals key differences and similarities between different types of real estate aspects. Here is a detailed comparison:
| Aspect | Real Estate Agent | Realtor |
|---|---|---|
| Compensation Structure | Earn commissions | Earn commissions |
| Commission Rate | Typically 5% to 6% of sale price | Typically 5% to 6% of sale price |
| Access to Marketing Tools | Basic tools | Better marketing tools |
| Potential Earnings | Varies based on performance | Potentially higher due to better tools |
| Market Conditions | Income varies | Income varies |
| Additional Costs | Licensing fees | Licensing fees + NAR membership fees |
Income for both groups depends on market conditions and individual performance. Realtors may earn more due to better marketing tools and networks.
Eligibility Criteria for Becoming a Realtor
To become a Realtor and have an official real estate career, you must first hold a real estate license. You also need to join a local association of Realtors. This is vital for gaining access to resources and networks.
Paying membership dues is required. For 2024, the National Association of Realtors (NAR) charges $154 in dues plus an extra special assessment, making it $201 in total. Commitment to the NAR’s Code of Ethics and Standards of Practice is mandatory as well.
Conclusion
Understanding the difference between a Realtor and a real estate agent is crucial and our detailed blog explains the differences precisely. Realtors belong to the National Association of Realtors and follow strict ethical codes. They also have extra resources and tools for their job. While all Realtors are agents, not all agents are Realtors. Depending on your requirements, you can get in touch with a realtor or real estate agent for assistance.
FAQs
1. What’s the difference between a real estate agent and a Realtor?
A real estate agent has a valid real estate license to help people buy, sell, or lease properties. A Realtor is a real estate agent but they must also be a member of the National Association of Realtors (NAR) and follow its code of ethics.
2. Can both Realtors and real estate agents handle commercial real estate?
Yes, both can handle commercial real estate transactions if they have the proper licensure and experience in that area.
3. What roles do buyer’s agents and listing agents play?
A buyer’s agent represents buyers in purchasing homes or rental properties. A listing agent helps sellers list their property for sale by owner on platforms like realtor.com.
4. Do Realtors have more access to MLS databases than regular agents?
Realtors often have better access to Multiple Listing Service (MLS) databases due to their membership with NAR, which provides extensive resources for finding listings.
5. Are there differences in how dual agency works for Realtors vs. licensed real estate brokers?
Both realtors and real estate brokers can act as dual agents representing both buyer and seller; however, realtors and brokers must disclose this relationship fully to avoid conflicts of interest under informed consent rules.
