Realtor vs. Real Estate Agent: What’s The Difference?

If you’re looking to buy or sell property, you’ve probably heard the terms Realtor vs. real estate agent used interchangeably. But did you know there’s a key difference between the two? On the surface, each help people to navigate the real estate market. However, not all real estate agents are Realtors.

So, in this article, we’ll break down the Realtor vs. real estate agent debate in simple terms. This way, you can understand what sets them apart and which one is the best choice for your real estate journey. Read along to learn more.

Table of Contents

• Realtor vs. Real Estate Agent, Explained
• Pros and Cons of Realtors vs. Real Estate Agents

Realtor vs. Real Estate Agent, Explained

As the most experienced and reliable property management team in Washington, D.C., we’re here to demystify the biggest real estate misconceptions out there. Let’s start with explaining the difference between a Realtor vs. Real Estate Agent.

A real estate agent is a licensed professional who helps clients buy, sell, and lease properties. A Realtor, on the other hand, is also a real estate agent—but with an added credential. They are members of the National Association of Realtors (NAR) and must adhere to a strict code of ethics. Let’s explain this more in-depth:

Explaining Realtors

A Realtor is essentially a real estate agent who chooses to join the National Association of Realtors (NAR)—a professional organization that sets high ethical and professional standards in the industry. Since this is the key distinction, let’s take a closer look at how being a NAR member enhances their services and benefits them.

For one thing, Realtors can use the Multiple Listing Service (MLS)—a special database that makes it easier to find and share property listings. In some areas, only NAR members have access to this. This exclusive access helps Realtors stay ahead of the competition and find prime homes.

Next, Realtors can take special courses to sharpen their skills and gain specialized designations and credentials, such as being a Certified Residential Specialist.

Explaining Real Estate Agents

Generally, a real estate agent has the same duties as Realtors, just without the NAR membership. Again, both are licensed professionals who help people buy, sell, or rent properties. More specifically, each of them does the following:

• List properties for sale or rent – Each of them helps sellers put their property on the market so that it reaches potential buyers. They create property listings with photos and descriptions to pique buyers’ interest. Also, they advise sellers on pricing strategies they can use to increase their property’s value.
• Find properties for buyers – Each of them helps people search for properties to buy. They tailor this search according to the client’s specific needs and preferences. Then, they provide a curated list of properties that match the buyer’s criteria. In addition, they can schedule property viewings to explore each choice further.
• Negotiate deals – Each represent sellers or buyers to get the best price possible in a transaction.  They handle counteroffers and negotiations to ensure a fair deal. In addition, they work with their clients to ensure they understand the deal agreement’s terms and conditions. In essence, they act as intermediaries.
• Handle paperwork – Each manages all the dealmaking paperwork, from signing contracts to closing the sale, so that all of the documents involved are accurate and complete. On a related note, they keep track of deadlines and important dates. This way, everyone is up to speed.
• Give real estate advice – Each helps their clients get a better feel for market trends so they can make smarter decisions. For instance, they advise their client on the best times to buy or sell properties. Furthermore, they can pinpoint which properties could serve as ideal investment opportunities, which property improvements might boost the home’s value, or tax loopholes to remember. Put another way, they act as consultants.
• Coordinating: Each works closely with lawyers and inspectors by keeping the lines of communication open and sharing all the property and transaction details along the way. They make sure all the paperwork is done right and on time. Plus, they team up to tackle any problems that pop up during the buying or selling process. The goal is to make sure everything goes smoothly, and the property sale wraps up without a hitch.

Note: Whether someone is a Realtor or a real estate agent, they earn their income the same way—through commission on successful property transactions, which is 5-6%.

Pros and Cons of Realtors vs. Real Estate Agents

If you’re thinking of buying or selling a home, you might be wondering who to choose between realtors vs. real estate agents. Let’s break down the pros and cons of each so you can decide who’s the best fit for your journey!

Pros of Working with Realtors

• Realtors play by the rules—literally! – Realtors must follow the NAR Code of Ethics, which means honesty, fairness, and professionalism are non-negotiable. This code ensures they conduct business with the highest standards of integrity. Plus, they stay ahead of the game with specialized training and certifications, keeping them updated on market trends and real estate laws. This ongoing education helps them provide the best possible service to their clients.
• They get exclusive access to property listings. In some areas, only Realtors can access the Multiple Listing Service (MLS), which contains the latest available properties. This exclusive access allows them to find the best properties for their clients before they’re widely advertised. It also helps them stay informed about market trends and property values.
• They have a wider network. Since Realtors are part of NAR, they often have better connections with lenders, inspectors, and other agents, which can make transactions smoother. These relationships can be invaluable when it comes to navigating the complexities of buying or selling a property. A strong network can lead to quicker, more efficient transactions and better outcomes for their clients.

Cons of Working with Realtors

• They might charge higher fees. Because of their extra training and certifications, some Realtors may charge slightly higher commission rates than regular agents. These additional costs can be justified by their expertise and the potential for better results in your property transaction. However, it’s always a good idea to discuss fees upfront and ensure you understand what you’re paying for.
• Not every Realtor is automatically better. While all Realtors follow NAR’s ethics, each individual has different skillsets. Some might not have the specific specialties you need, such as experience with luxury homes or large multi-family properties. So, you need to find the person who meets your needs, no matter the designation.

Pros of Working with Real Estate Agents

• They can be more affordable. Since they are not required to pay NAR membership fees, some real estate agents may offer lower commissions. This can make working with them a cost-effective option. Lower commissions can mean more savings for buyers and sellers.
• They are still licensed professionals. Even without NAR membership, real estate agents must pass exams and follow state laws to help buyers and sellers. They are trained and knowledgeable in real estate transactions. This ensures they can provide competent and reliable service.
• Independent and flexible. Many real estate agents work independently, which means they may be more available and flexible with your schedule. This can be a big advantage for clients with busy or irregular schedules. To boot, independent agents can often provide more personalized attention and service.

Cons of Working with Real Estate Agents

• No NAR Code of Ethics – While most agents are honest, they are not required to follow NAR’s ethical standards. This means they may not adhere to the same strict guidelines that Realtors do. However, many non-NAR agents still maintain high ethical standards and professionalism.
• Might have limited access to listings – In certain areas, agents who are not Realtors may have a harder time accessing the best property databases. This can limit their ability to find the most up-to-date and comprehensive listings for their clients. As a result, their clients might miss out on some great properties.
• Fewer advanced training opportunities – Since they are not NAR members, some agents may not have access to extra real estate courses and certifications. This can mean fewer opportunities to gain specialized skills and knowledge. However, many non-NAR agents still pursue professional development through other channels.

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