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Ever wondered about the difference between a Realtor and a real estate agent? In a market that’s constantly shifting, knowing who does what can make all the difference. Case in point: existing home sales surged 4.8% in November 2024, reaching a seasonally adjusted rate of 4.15 million—the fastest pace since March—and marked a 6.1% year-over-year increase, the largest since June 2021.
So, what sets a Realtor apart?
While all Realtors are real estate agents, not all real estate agents are Realtors. A Realtor is a member of the National Association of Realtors (NAR), which means they adhere to a strict Code of Ethics and gain access to tools and training that enhance their expertise.
Whether you’re looking to buy, sell, or build a career in real estate, understanding these differences is essential. Let’s explore what makes these roles unique.
Which Real Estate Path Fits Your Career Goals?
- If you want to start your real estate career: Become a real estate agent by completing pre-licensing education, passing your state’s real estate exam, and working under a licensed broker. It’s the fastest way to enter the industry and gain experience.
- If you want to enhance your credibility and access more resources: Become a Realtor by joining the National Association of Realtors (NAR). This commitment adds ethical standards, professional training, and networking opportunities to your career.
- If you’re aiming to build a strong reputation in real estate: Realtors stand out by adhering to a strict Code of Ethics and gaining access to tools and connections that can give you a competitive advantage.
What Is a Realtor?
A Realtor is a real estate professional who is an active member of the National Association of Realtors (NAR), the largest trade association in the U.S. While all Realtors are real estate agents, not all real estate agents are Realtors. Here’s what sets them apart:
- Membership Requirements: To join NAR, you must already hold a valid real estate license and agree to follow their Code of Ethics.
- Ethical Standards: NAR’s Code of Ethics goes beyond state requirements, ensuring members uphold high professional behavior and treat all parties fairly.
- Annual Fees and Training: Realtors pay annual membership dues and must complete ethics training every few years to maintain their status.
- Advantages: Being a Realtor can open doors to additional resources, networking opportunities, and credibility in the real estate industry.
What Is a Real Estate Agent?
A real estate agent is a licensed professional who helps clients buy, sell, or rent property. Think of them as the front line of real estate—they’re the ones guiding you through showings, negotiations, and closing deals. But what makes a real estate agent different from a broker or Realtor? Here’s what you need to know:
Education and Licensing: Real estate agents complete pre-license education, pass the state real estate exam, and obtain a license to practice. The education focuses on property ownership, contracts, and ethical standards. Unlike brokers, they don’t undergo additional coursework for advanced licensure.
Roles: Real estate agents work under the supervision of a licensed broker, who oversees their transactions and ensures compliance with state regulations. Their responsibilities include:
- Listing homes for sale.
- Helping buyers find properties.
- Assisting with rental agreements.
Independence: Unlike brokers, real estate agents cannot work independently. They must be affiliated with a broker who manages the legal and logistical aspects of transactions.
Real estate agents are essential to the process of buying and selling homes, providing hands-on assistance while gaining experience that could one day lead to becoming a broker.
Realtor vs Real Estate Agent: Quick Comparison
Real Estate Agent: The Starting Point
To become a real estate agent, you must meet specific state requirements to get licensed. These include:
- Education: Complete a state-approved real estate course program covering contracts, property law, and basic real estate principles.
- Examination: Pass the real estate license exam, which includes state-specific and national real estate topics.
- Licensing: Apply for and maintain a valid real estate license through your state’s regulatory board.
Realtor: A Step Above
Becoming a Realtor involves meeting the real estate agent requirements and committing to additional standards:
- NAR Membership: Join the National Association of Realtors (NAR), which includes being an active member of your local Realtor association.
- Ethics and Professionalism: Adhere to NAR’s Code of Ethics, ensuring fairness and professionalism in all real estate transactions.
- Training and Dues: Complete ongoing ethics training and pay annual membership fees to maintain your status.
Realtors gain access to exclusive resources, networking opportunities, and tools that can give them an edge in the competitive real estate industry.
Timeline for Becoming a Real Estate Professional
If you’re considering a career in real estate, here’s a general timeline for each role:
Real Estate Agent
- Complete pre-licensing education (4-6 months).
- Pass your state’s real estate exam.
- Find a sponsoring broker to work under.
Realtor
- Obtain a valid real estate license.
- Join a local association of Realtors and pay annual membership dues.
- Complete NAR’s ethics training (every 3 years).
NAR Membership vs. Real Estate Agent Status Debate
Sometimes, the best insights come from real-world conversations, and a recent Reddit thread sparked a fascinating debate: Is it worth being a Realtor, or is staying a real estate agent without NAR membership the smarter move?
Here’s the gist of the discussion and what you can learn from it:
Pros and Cons of NAR Membership
Many participants pointed out that being a Realtor, which requires joining the National Association of Realtors (NAR), comes with significant costs. One user stated, “I’d drop NAR tomorrow if I could. Unfortunately, my MLS requires me to be a member.”
This sentiment was echoed by others who highlighted that the MLS (Multiple Listing Service) access is often tied to NAR membership, leaving agents little choice but to pay the dues.
The Ethics Debate
A common argument in favor of NAR membership is its emphasis on ethics, but not everyone was convinced. “I’ve worked with scummy Realtors, so the ethics class feels like a pay-to-play thing,” said one commenter.
That said, some saw the mandatory ethics training as a useful baseline for accountability in the industry.
Alternatives to NAR Membership
Some agents explored life outside NAR and found it viable. One user shared their experience as a non-member agent: “I pay about $20 more per quarter for MLS access, but I don’t miss NAR one bit.” Others suggested negotiating with local MLS boards to allow non-member access.
For those willing to forgo NAR membership, the trade-off often includes additional fees and a lack of access to standardized forms, tools, and resources. As one agent summed it up, “If you’re willing to rebuild your entire system, you can leave, but it’s a lot of work, and costs can add up.”
The Verdict
The Reddit thread revealed a clear divide:
- Some agents find NAR membership necessary for MLS access and resources like standardized forms.
- Others view it as a “money grab” and would leave if given a realistic alternative.
As one user put it, “The general public doesn’t care if I’m a Realtor or not—they just want me to get the job done.”
Final Thoughts
Understanding the differences between a real estate agent and a Realtor is key to making informed decisions about your real estate career. Starting as a licensed real estate agent allows you to gain valuable experience and begin working with clients. Taking the extra step to become a Realtor by joining the National Association of Realtors provides additional credibility, ethical standards, and access to resources that can elevate your career.
Whether you choose to remain an agent or take on the added professionalism of becoming a Realtor, both paths offer opportunities to build a successful and fulfilling career in real estate.
FAQ
No. All Realtors are real estate agents, but not all real estate agents are Realtors. Realtors are members of the National Association of Realtors and follow its Code of Ethics.
Pay is based on commissions rather than titles. However, Realtors might have access to more resources that could increase their earnings potential.
In Canada, the term “Realtor” is trademarked and refers to members of the Canadian Real Estate Association who follow specific ethical guidelines.
No, real estate agents must work under a broker’s supervision.
Typically, 2-3 years as an agent plus 6 months to 1 year of additional coursework.
