The difference between a real estate agent and a realtor is significant if you are new to the industry. If you are a seasoned real estate professional, you may have noticed that the various titles used in the industry, such as broker, salesperson, or agent, are often interchangeably used. This can be confusing, especially since these titles have distinct differences.
Understanding the various titles used in the industry, such as realtor and real estate broker, can help you choose the right one for your needs.
Key Differences
One of the most significant differences between real estate agents and realtors is the type of certifications they have. While they may work in the same field, the two are held to different standards. This means that while they may be able to offer the same services, they are not held to the same standards. To better understand the roles of real estate agents and realtors, we will take a closer look at the two.
Real Estate Agents
A real estate professional is a person who helps individuals buy or sell properties. They can work with various types of residential and commercial properties. They can also practice with a specialization in one area. For instance, they can be a buyer or rental agent.
The primary difference between a buyer’s agent and a listing agent is the client’s immediate need. For instance, a buyer’s agent helps people find homes, while a listing agent helps sellers sell their properties. On the other hand, a rental agent helps potential tenants find properties.
After passing the state examination, real estate professionals can start working as agents. In most states, agents must complete at least 30 to 90 hours of coursework to maintain their licenses. They are also required to keep up with the latest changes in the industry and be knowledgeable about all the laws in the country.
Realtors
A realtor is a member of the National Association Of Realtors, the largest trade organization in the US. To be an active member of the organization, an agent must have a valid license and a clean, professional record. The main reason why realtors join the organization is that it has a good reputation. The National Association Of Realtors Code of Ethics requires all members to follow specific ethical standards. This ensures that consumers work with agents committed to upholding the highest standards.
Both real estate agents and realtors do precisely the same when helping people buy or sell a property. The difference is that the latter is a part of an organization that upholds higher ethical standards. The National Association Of Realtors states that about half of all real estate professionals in the country are certified. Many agents choose to be part of this organization due to its efforts to protect their client’s interests. As a trade association with a lot of power in both federal and state governments, the NAR can also influence the policies of both parties.
Through its various activities, the National Association Of Realtors can also help improve the legal status of real estate professionals. While they are not required to become a real estate agent, some agents may choose to be part of this organization due to its benefits.
Unlike real estate agents, Realtors must follow the organization’s Code of Ethics and 17 additional articles. These standards are in addition to the ones real estate professionals are already following. The National Association Of Realtors established the Code of Ethics to help ensure that real estate professionals follow the organization’s ethical guidelines. It states that they must perform their duties in a manner that is above and beyond what is expected of them by their clients and the public.
The 17 articles of the Code of Ethics cover various professional standards that are required to be followed. The first nine of these are dedicated to the duties of real estate agents. The 14th article states that real estate professionals must act in their client’s best interests.