Real Estate Agent, Realtor, and Broker: What’s the Difference?
If you’ve ever been in the process of buying or selling a home, you’ve probably heard the terms real estate agent, Realtor, and broker used — sometimes interchangeably. But did you know they aren’t the same thing? Each title comes with different qualifications, responsibilities, and levels of expertise. Understanding these differences can help you choose the right professional for your real estate journey. Let’s break it down.
If you’ve ever been in the market to buy or sell a home, you’ve probably heard the terms “real estate agent” and “Realtor” used interchangeably. While they may seem like the same thing, there’s an important distinction between the two. Understanding the difference can help you choose the right professional for your real estate needs.
What Is a Real Estate Agent? A real estate agent is a licensed professional who helps people buy, sell, and rent properties. To become a real estate agent, one must complete the required coursework and pass a state licensing exam. Once licensed, agents can join a brokerage and begin representing clients in real estate transactions.
Real estate agents can specialize in different areas, such as residential, commercial, or rental properties. They provide valuable market insights, negotiate deals, and guide clients through the often-complex buying and selling process.
What Is a Realtor? A Realtor is a real estate agent who is also a member of the National Association of Realtors (NAR). This membership comes with additional responsibilities and standards, as Realtors must adhere to the NAR’s strict Code of Ethics. This code ensures that Realtors conduct business with integrity, professionalism, and a commitment to their clients’ best interests.
Realtors often have access to exclusive market data, tools, and educational resources that help them stay ahead in the industry. By working with a Realtor, you can feel confident that you’re getting expert guidance from someone who upholds the highest standards.
Key Differences at a Glance:
Licensing: Both real estate agents and Realtors are licensed professionals.
Membership: Only Realtors are members of the National Association of Realtors.
Code of Ethics: Realtors follow a strict ethical code; real estate agents are not required to.
Resources: Realtors often have access to more market data and educational tools.
Which One Should You Choose? When deciding between a real estate agent and a Realtor, it’s essential to consider their experience, reputation, and dedication to their clients. While both can help you achieve your real estate goals, working with a Realtor offers the added assurance of ethical standards and a commitment to professionalism.
Real Estate Broker: A real estate broker is a step above an agent in terms of qualifications and responsibilities. Brokers must have additional education, pass a more advanced licensing exam, and often have years of experience as an agent. A broker can work independently, start their own real estate firm, and supervise other agents.
Key Responsibilities:
-Overseeing real estate transactions
-Managing and mentoring agents
-Ensuring legal and ethical compliance
-Handling complex negotiations
Which Professional Do You Need?
-If you’re buying or selling a home and need guidance, a real estate agent or Realtor can provide excellent support.
-If you want the assurance of working with someone who upholds the highest ethical standards, choose a Realtor.
A broker may be your best bet if your transaction is more complex or you’re looking for someone with advanced expertise.
Simply put:
When you pass the state exam, you become a licensed real estate agent.
A real estate agent (or broker) who is a member of the National Association of Realtors (NAR) is called a REALTOR® — a title that reflects a commitment to higher ethical standards and professionalism.
When it comes to real estate transactions, only a licensed broker can operate independently and take full legal responsibility for the deal.
A broker can work independently and often takes on multiple roles. Some brokers may also hold the titles of Broker/REALTOR®/Owner, running their own real estate company.
Working as a real estate agent requires being affiliated with a real estate company, also known as a brokerage.
That’s why real estate agents and REALTORS® must work under a broker — and why the commission from a transaction is typically split between the broker and the agent.