What’s the difference between a REALTOR® and a real estate agent?
If you're in the market to buy or sell a home, you may have heard the terms "REALTOR®" and "real estate agent" used interchangeably. While both professionals work in the real estate industry and usually accomplish the same job, there are some key differences between the two.
Real Estate Agent
A real estate agent is a licensed professional who helps clients buy, sell, or rent real estate. To become a real estate agent, individuals must complete pre-licensing education requirements and pass a state licensing exam. Once licensed, real estate agents can work independently or as part of a team.
REALTOR®
A REALTOR® is a real estate agent who is a member of the National Association of Realtors (NAR), a professional organization that represents the interests of real estate professionals. To become a REALTOR®, individuals must complete the same education and licensing requirements as real estate agents, but must also agree to abide by the NAR's code of ethics, pass a test to prove they know this code of ethics inside and out, and pay annual dues to remain a member.
Differences Between REALTORS® and Real Estate Agents
While REALTORS® and real estate agents both help clients buy and sell real estate, there are some key differences between the two:
Code of Ethics: REALTORS® are bound by the NAR's code of ethics, which requires them to uphold certain standards of conduct and professionalism. In essence, it forces them to not only act in their client’s best interest (a responsibility of both real estate agents and REALTORS® alike) but to be held to a measurably higher moral standard. REALTORS® are required to cooperate with one another, and to treat all parties fairly.
Access to Resources: REALTORS® have access to a wide range of resources and tools provided by the NAR, including educational programs, research data, and legal resources. Additionally, through their NAR membership, REALTORS® have access to more than 1,400 local boards and more than 50 state and territory associations. Many brokerages require that their agents belong to a local real estate association, which, in turn, requires that they be active members of the NAR. This ensures a consistently high standard across the brokerage, and provides a base level of qualification for anyone whose name is attached to that brokerage.
Designation: REALTORS® can earn additional designations and certifications through the NAR, such as the Certified Residential Specialist (CRS) designation, which indicates expertise in residential real estate. Additional certifications are available outside of the NAR, but those within the NAR are exclusive to NAR members.
Final Thoughts
While the terms "REALTOR®" and "real estate agent" are often used interchangeably, there are some important differences between the two. Both professionals can help you buy or sell a home, but REALTORS® are held to a higher standard of conduct and have access to additional resources and tools through their membership in the NAR. A REALTOR® designation also attests to the fact that a person has invested extra time, effort, money, and energy into demonstrating their professional expertise. When choosing a real estate professional to work with, consider their experience, expertise, and reputation, regardless of whether they are a REALTOR® or a real estate agent.
