Like talking about the same in property, truly understanding each and every part and the professionals involved in real estate transactions would be very confusing indeed. Most confusing among the many would be the difference between Realtor and real estate agent which creates all the amalgamation of concepts and definitions. For though the two may be used interchangeably most of the times, in reality they refer to different qualifications and functions. The difference between them is very important to be known so that it can help you in taking an informed decision while being faced by any real estate transaction. Here’s a short introduction into what-characterizes Realtor from an agent.
Real Estate Agent
A real estate agent is an individual who is qualified to sell or rent properties on behalf of his client. The requirements for becoming real estate agents vary from state to state but generally include a certain coursework hours, background check and state licensing exam.
Real estate agents represent property buyers or sellers across residential, commercial or rental real estates. An agent might specialize in just some types of property such as luxury residential or industrial properties. They may work independently or under a brokerage firm, according to their clients’ needs, and assist throughout the real estate transaction with information and expertise regarding the market.
Realtor Definition
An active member of the National Association of Realtors, or NAR, is a legal designation for a realty agent or broker. This designation comes with particular obligations; primarily, it requires the realty professional to abide by the NAR Code of Ethics and Standards of Practice. This is the main distinguishing point between a Realtor and an ordinary agent.
In addition, Realtor membership provides tools, resources, and education unavailable to non-member Realtors. Numerous MLSes are also accessible for Realtors, and this tool has great importance in property listing and searching. Other advantages for Realtors from NAR include networking, continuing education, and professional development.
So not all licensed real estate professionals are Realtors. The key factor is being NAR listed and abiding by their ethical standards.
Key Differences Between a Realtor and a Real Estate Agent
NAR Membership: The main distinction here is that Realtors are members of the National Association of Realtors, whereas real estate agents may or may not be.
The Code of Ethics: All realtors abide by NAR Code of Ethics policy, in which the highest standards will ensure ethics in business dealings with clients, customers, and even fellow professionals. Although real estate agents are required to comply with the state regulation of the respective country, they are not obliged to adhere to this code unless they become realtors.
Other Facilities : Realtors are also given facilities like tools, data, and resources for marketing not available to non-member agents of real estate. This also includes opportunities for professional development and several advanced tools to help clients make informed decisions.
Care of Professionalism: Being an NAR member is treated under various professional conduct codes, and they may be held accountable once proven guilty to such. Certain States register their own guidelines for real estate agents and do not fall in line with a specific standard of accountability unless the agent happens to be registered as a Realtor.
Functions Assigned to Real Estate Agents and Realtors
As with all professions, one of the primary responsibilities of real estate agents and Realtors is as follows:
Valuation and Pricing of Property: Pricing properties on behalf of clients according to market trends and conditions. Selling Negotiations: The third party dealing with the buyer and seller will serve as the negotiator between the two towards making a deal together.
Marketing: Marketing properties through various channels: listings and open houses; social media and traditional marketing.
Client Support: Support and advice are given to various aspects of the process of transaction: legal paperwork, mortgages, and market conditions.
If a real estate agent is a Realtor, they are required to keep up licensing, complete ethics training on a regular basis, and pay dues to remain a member of NAR.
How Are Real Estate Agents Paid?
Almost always, real estate agents make money by earning a commission income based on the property sale price. Commissions are usually around 5-6% of the actual selling price of the property split between the buyer’s agent and seller’s agent.
Most agents work under a supervising real estate broker with whom the commission gets split. This is variable, as some agents secure splits based on experience or sales volume.
Due to recent changes in the industry because of the Sitzer-Burnett case settlement, very important changes are being made in the commission structure. Brokers are no longer allowed to offer commissions in the MLS, and commissions that are paid to buyers’ agents must now be negotiated on a case-by-case basis.
Why Use a Realtor?
In considering the supports available in the highly complex real estate sphere today, Realtors can provide indispensable benefits. Their affiliation with the National Association of Realtors not only offers a stamp of professionalism but also signifies a sense of integrity and expertise that is an added assurance for the client.
Here are several reasons why a Realtor may be helpful:
Code of Ethics: Realtors function by a Code of Ethics. This ensures that Realtors work in a transparent manner.
Professional Development: NAR arms Realtors with all required tools and education for Realtors to stay knowledgeable on market trends and best practices.
Advocacy: Being a member of NAR, Realtors voice their opinions in policy-making affecting property owners’ interests and the real estate industry.
Access to MLS and Tools: Realtors hold the edge, as they usually have access to MLS listings and other industry tools that can help grant clients an edge in tracking down the right property.
Take steps to becoming a Realtor. First, get a real estate license. You can get eligibility to get the real estate license after getting the required education and passing a licensing exam. Now, you setup with the application of become members of NAR.
Membership dues for NAR, 2024 were $154 (special assessment brings it to $201) but these dues support lobbying activities, conduct research and encourage best practices in the real estate industry.
Conclusion
When choosing a professional who can help you through your property transactions, you should have an understanding of the difference between being a Realtor and being a real estate agent. Every Realtor is a real estate professional, but not all real estate agents are Realtors. They work with extra peace of mind and with smooth, successful transactions because they have added benefits of ethical standards, industry resources, and professional accountability. This would help you in better decision-making and finally clarity of your real estate goals, whether buying or selling.
Looking for Professional Assistance?
Taking that next step in the real estate journey-whether buying, selling, or investing-would not be the same without the right professional by your side. Contact us to set up an appointment or to get one-on-one personalization from our seasoned Realtors. We are here every step of the way!