The Difference Between a Realtor® and a Real Estate Agent

Folks who want to practice selling residential real estate sometimes have a choice between these two terms. While some States make it mandatory to be a Realtor® to practice real estate. While these terms are interchangeable by clients, as a practitioner, it’s essential to understand the difference between them.

Knowing the distinction will not only help you position yourself in the market, but also help you decide if becoming a Realtor® is the right move for your career.

What is a Real Estate Agent?

A real estate agent is anyone who holds a valid State-issued license to practice real estate. To become an agent, you’ve already completed your required pre-licensing courses, passed your State and National exam. As a real estate agent, your primary role is to assist clients with buying, selling and possibly renting properties.

Real estate agents work under a brokerage, and they can represent either buyers or sellers (or both if dual agency is legal in that State). Your responsibilities include:

Helping Clients Find or Sell Properties: You’ll be working closely with buyers to find the right property, or with sellers to market and sell their home.
Negotiating Offers: One of your main duties will be negotiating on behalf of your clients to get the best possible deal, whether they’re buying or selling.
Manage Paperwork: Each real estate transaction involves legal contracts, disclosures, and other paperwork that you’ll help manage, ensuring everything is signed and filed properly.
Scheduling Inspections: You will coordinate inspections and third party opinion on the property’s condition.

What is a Realtor®?

A Realtor® is a real estate agent who is a member of the National Association of Realtors, also referred to as NAR. Said, N-A-R, not “Nar”. While all Realtors® are real estate agents, not all agents are Realtor®. Becoming a Realtor® means you’ve taken the extra step beyond simply obtaining your real estate license by joining NAR and agreeing to adhere to its strict Code of Ethics. The term “Realtor®” is a trademarked designation, so only members of NAR can use it and it must be accompanied by either a registered mark (®) or written in all caps, REALTOR.

Key Advantages of Being a Realtor®:

Code of Ethics: As a Realtor®, you are bound by the NAR’s Code of Ethics, which sets the standard for ethical behavior and professionalism in all your real estate dealings. This includes upholding honesty, fairness, confidentiality, and a commitment to act in your client’s best interest. This includes putting your client above yourself, your business and your commission. The NAR Code of Ethics encourages Realtors® to act fairly and professionally with other agents and clients, which can be an important differentiator in a competitive market.
Ongoing Education: NAR offers a variety of educational opportunities to help Realtors® stay up to date with industry changes, new laws and best practices.
Access to Tools and Resources: NAR states that Realtors® gain access resources, including exclusive marketing materials, legal updates and data tools that can help you stay ahead of the industry. Although, many of these come at an added cost above your membership fee. It is also important to note that while NAR is the nation’s largest trade organization that commits to represent Realtors®, it also administers a for-profit division.
Professional Recognition and Trust: The NAR claims being a Realtor® signals to potential clients that you’re committed to maintaining high standards of professionalism.

Key Differences Between a Realtor® and a Real Estate Agent

The distinction between a Realtor® and a real estate agent is more than just a matter of terminology. Here are the key differences:

Membership in the National Association of Realtor® (NAR):
- Real Estate Agent: As a real estate agent, you don’t have to be a NAR member to practice real estate. You’re simply required to pass your State and National licensing exam and meet regulatory requirements. (As mentioned, in some States it is mandatory to be a Realtor® because the NAR owns the State’s MLS.)
- Realtor®: To become a Realtor®, you must join NAR. Membership requires paying annual dues and agreeing to follow NAR’s Code of Ethics, which is a set of guidelines designed to ensure professionalism and ethical conduct in the industry.
Adherence to Ethical Standards:
- Real Estate Agent: Real estate agents are bound by state and local real estate laws and regulations, but they’re not required to adhere to a universal code of ethics beyond what’s mandated by law.
- Realtor®: Realtors® are expected to adhere to the NAR’s Code of Ethics, which is more detailed and comprehensive than state law. This code covers everything from how to handle client relationships to how to treat colleagues and competitors. If a Realtor® violates the Code, they can be disciplined or even expelled from the organization. For that to happen, one would need to point to an actual provision in the code that has been violated by the opposing party.
Access to Professional Development and Networking:
- Real Estate Agent: Real estate agents have access to training and tools provided by their brokerage. The agent is dependent on the skill and knowledge of the broker level managers for education, which can vary from world-class, to non-existent. Agents can pay to join local BNI groups.
- Realtor®: Above your paid membership, NAR offers conferences, online courses and an extensive network of professionals. It can be difficult to access information about developing your craft in real estate, so these resources are found to be valuable by many.
Reputation and Branding:
- Real Estate Agent: If your client is familiar with NAR, they may prefer to work with a Realtor® over an agent who is not a member.
- Realtor®: NAR claims the term “Realtor®” is well-recognized by the public and can immediately elevate your reputation as a trusted, ethical and knowledgeable professional.

Should You Become a Realtor®?

The answer to this depends on your career goals, personal preferences and your State’s MLS policies. Here are some things to consider:

Find out if it’s mandatory: In some states, becoming a Realtor® is mandatory to legally operate, effectively making Realtor® membership a prerequisite for obtaining or maintaining a real estate license.
Find out if it’s mandatory by your brokerage: Your Brokerage may require all agents who hang their license with them to be an NAR member.
If you are looking for more resources and networking opportunities, attending real estate conferences can positively impact your business.

Here are some more resources to help you understand the difference between a real estate agent and a Realtor®.

Want to learn more about how to sell residential Real Estate? Check out these resources on OnTrack Agent.

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