Realtor vs. Real Estate Agent: The Key Differences That Matter

Choosing the right professional impacts your profit. While all Realtors are agents, not all agents are Realtors. The key difference? A Realtor is bound by a strict Code of Ethics and has superior resources. Discover why this distinction is critical for a successful, secure, and more profitable real estate transaction.

When you're venturing into the world of real estate, whether to buy or sell a property, you’ve probably encountered the terms “Realtor” and “real estate agent.” At first glance, they may seem like two sides of the same coin, but there are crucial differences between them that could impact your experience in the property market. 

If you’re looking for a smooth, successful transaction, understanding these distinctions could help you make the right choice for your needs.

What is a real estate agent?

Let’s start with the basics. A real estate agent is a licensed professional who helps clients buy, sell, or rent properties. Real estate agents typically work for a brokerage and are required to complete specific educational courses and pass a licensing exam in their jurisdiction. Their role can involve a variety of tasks, including:

• Helping clients find or sell properties: Whether it’s guiding buyers through a home search or helping sellers price their home and market it effectively, a real estate agent facilitates the process.
• Negotiating deals: Real estate agents are often responsible for negotiating the terms of a sale or purchase between buyers and sellers, including price, conditions, and closing dates.
• Managing contracts: They help prepare and manage contracts, disclosures, and other paperwork involved in the transaction.
• Coordinating with other professionals: Real estate agents often work closely with home inspectors, mortgage brokers, appraisers, and attorneys to ensure all aspects of the transaction are handled properly.

What is a realtor?

A Realtor, on the other hand, is a specific type of real estate agent who is a member of the National Association of Realtors (NAR) or an equivalent professional organisation in their respective country. While all Realtors are real estate agents, not all real estate agents are Realtors.

The main difference is that Realtors are bound by a Code of Ethics established by the NAR, which goes beyond the standard licensing requirements for real estate agents. This code ensures that Realtors act in the best interests of their clients and work to maintain high standards of professionalism. The key aspects of this code include honesty, integrity, transparency, and fairness. It’s not just about making a sale, it’s about doing it ethically and in the most professional way possible.

Realtors also have access to additional resources, education, and support through their membership with the NAR. These resources can help them stay on top of market trends, legal changes, and best practices, which ultimately benefits their clients.

Key differences between a realtor and a real estate agent

Now that we've outlined the basics of each, let's dive into the key differences that matter when deciding whether to work with a Realtor or a real estate agent.

1. Membership with professional organisations

As mentioned earlier, the most significant difference between a Realtor and a real estate agent is that a Realtor is a member of the National Association of Realtors (NAR) or another recognised professional organisation. This membership requires Realtors to follow strict ethical guidelines and stay updated on changes in the industry.

While real estate agents are also licensed professionals, they don’t necessarily belong to such an organisation. Being a member of the NAR (or a similar body) demonstrates a commitment to higher standards of practice, which can be important for buyers and sellers seeking a trusted, ethical representative.

2. Code of ethics and accountability

Realtors are held to a Code of Ethics that is overseen by the NAR. This code is quite comprehensive and covers everything from fair treatment of clients and colleagues to a commitment to transparency in all dealings. Realtors must treat clients fairly, keep their best interests in mind, and avoid conflicts of interest.

Real estate agents, however, do not have to follow such a detailed code unless they are members of a similar professional organisation. While most real estate agents still work ethically, the absence of such a code leaves some room for ambiguity. Realtors, on the other hand, are required to uphold these principles at all times, giving clients an additional layer of protection.

3. Specialised knowledge and resources

Because Realtors are required to complete additional professional development and stay current with industry trends, they tend to have more specialised knowledge than non-Realtor agents. Their membership with organisations like the NAR gives them access to:

• Industry updates: Realtors receive regular updates on market trends, changes in real estate laws, and new tools and technologies that can enhance the buying and selling process.
• Networking opportunities: Realtors have access to exclusive networks of other professionals in the real estate industry, including brokers, mortgage lenders, home inspectors, and more.
• Advanced tools and resources: Realtors typically have access to resources such as the Multiple Listing Service (MLS), which provides detailed property listings not available to the general public. They also may have additional marketing tools to help sellers get their homes noticed.

4. Training and education

Realtors often have access to more comprehensive training and educational opportunities than standard real estate agents. Through the NAR and other professional bodies, Realtors can attend workshops, webinars, and conferences that keep them informed on the latest market trends, legal changes, and other important aspects of the real estate world.

Although all real estate agents must complete mandatory licensing courses and exams, they are not necessarily required to continue their education after obtaining their licence. In contrast, Realtors must engage in ongoing professional development to maintain their membership status.

5. Access to MLS and property listings

The Multiple Listing Service (MLS) is a key tool that Realtors have access to, which gives them detailed and up-to-date information about properties for sale. The MLS is an essential resource for buyers and sellers because it ensures that agents have access to the latest listings, helping them find or sell a property faster.

Real estate agents who are not Realtors may have limited access to MLS or may have to work through a broker to get similar information. Realtors, however, enjoy direct access to these comprehensive databases, giving them an edge when it comes to property searches.

6. Legal and ethical support

In addition to the practical benefits, working with a Realtor provides you with a legal and ethical safety net. If you feel that your Realtor has violated the ethical code or you’ve encountered an issue in your transaction, you have access to a system for filing complaints and resolving disputes through the NAR.

In contrast, real estate agents who are not Realtors may not have the same kind of oversight or resources when it comes to resolving ethical issues. While they can still be held accountable through the state licensing board, the process may not be as straightforward as with Realtors who have access to additional support.

Realtor vs. real estate agent: Comparison Table

Why does it matter to you as a buyer or seller?

So, what does all of this mean for you as a buyer or seller? Ultimately, the choice between working with a real estate agent or a Realtor may depend on your personal preferences and what kind of support you’re looking for.

• If you want an agent with a high level of professionalism, ethical standards, and access to more resources, Working with a Realtor is a great option. Their extensive training and commitment to ethical practices can give you peace of mind as you navigate the often complex process of buying or selling a home.
• If you want someone who is qualified to help you but doesn’t necessarily need to be a member of a professional organisation, A real estate agent can also be a suitable choice. While they may not have the same level of access to resources or commitment to a strict code of ethics, many are still well-qualified and experienced in the industry.

Final thoughts

While the terms “Realtor” and “real estate agent” are often used interchangeably, understanding the key differences between them can have a significant impact on your experience in the property market. Realtors are held to higher ethical standards, enjoy access to additional tools and resources, and typically have specialised knowledge that can be crucial in helping you buy or sell a home.

Ultimately, whether you choose to work with a Realtor or a real estate agent, the most important factor is ensuring you feel comfortable with the professional you’re working with and confident in their ability to guide you through your real estate journey. By choosing someone who has the expertise, resources, and commitment to your best interests, you’re more likely to have a successful and smooth transaction.