You’ve probably seen them on yard signs. You’ve probably hired one to sell your house. But do you actually know the difference between a real estate agent and a Realtor?
It’s a common point of confusion. Most people use the terms interchangeably. They shouldn’t.
The word Realtor is a trademark. It refers specifically to someone who is an active member of the National Association of Realtors (NAR). A real estate agent is simply someone licensed by the state to help consumers buy and sell commercial or residential property.
Here is the kicker: not all real estate agents are Realtors. And not all Realtors are necessarily real estate agents.
Home appraisers. Property managers. Real estate counselors. Real estate brokers. They can all be members of the NAR. They all earn the title.
Зміст
The Licensing Barrier
In the United States, each state sets its own requirements for becoming a licensed real estate agent. It’s not a national standard. It’s local.
Most states require a minimum of 30 to 90 hours of classroom instruction. This must come from an accredited college, university, or technical school. You study real estate fundamentals. You learn the ropes.
After you finish school, you have to pass an official exam. This test covers real estate standards and practices. It also covers national real estate law and specific state laws.
Once you pass, you pay an annual fee for your license. This license must be renewed every one or two years. Some states require a certain amount of continuing education just to keep that license active.
If you meet those criteria, you are a real estate agent.
The NAR Membership Hurdle
Only about half of all licensed real estate agents in the U.S. are Realtors or members of the NAR.
To become a member, you need to join your local real estate board or association. These associations are often organized by county or region. You can look up your local board in the phone book or by searching the NAR website.
Once you’re a member of your local board, you’re automatically extended membership into the national organization.
It’s not free. Membership in a local real estate board or association requires an annual fee. That fee covers dues for the NAR and any state-level real estate associations.
But there’s more to it than just writing a check. New NAR members must take an online course on the ethics code and pass an exam. Current members are required to take an online ethics refresher course every four years.
The Code of Ethics
To qualify for membership, you must agree to adhere to NAR’s strict code of ethics and standards of practice.
The official ethics code is revised yearly to reflect the latest issues in real estate law and practice. Its core message is simple.
“Treat all parties honestly.”
Although the primary responsibility of a buying or selling agent is to their client, Realtors promise never to mislead or withhold information from anyone involved in the transaction. That includes the other real estate agent and their clients.
The NAR ethics code is what separates Realtors from non-member real estate agents.
The study of ethical principles is included in many state education and licensing programs. But the NAR code obligates Realtors to follow a specific code of ethics and standards of practice that goes beyond state minimums.
Part of the incentive for becoming a Realtor is to capitalize on the good reputation of NAR members. The idea is that consumers will opt to work with a real estate agent who has sworn to treat all parties fairly and honestly.
Why It Matters to You
Like other trade organizations, the NAR offers members the benefit of a collective voice. They lobby state and federal governments for improved legal protections.
Through local associations, NAR members can network. They learn best practices for their communities. Annual conferences and continuing education courses allow Realtors to polish their skills.
They improve their chances of success in this highly competitive industry.
So when you’re standing in your living room, trying to figure out how to sell your house, does it matter?
Let’s look at exactly what a Realtor can do for someone who wants to sell his or her house.
