Realtor vs. Real Estate Agent: Professional Differences That Matter

Many people use the terms “Realtor” and “real estate agent” as if they mean the same thing. While both work in real estate, they are not identical titles.

The difference comes down to professional membership, ethical standards, and access to resources. Understanding the distinction helps clarify how professionals in the industry operate.

This article explains the key differences between Realtors and real estate agents, including how each one is licensed, what they do, and how their roles compare.

What Is a Real Estate Agent?

A real estate agent is a licensed professional who helps people buy, sell, or rent property. Anyone who completes the required education and passes their state’s licensing exam can become a real estate agent.

Each state has different requirements for getting a real estate license. Most states require:

• Pre-licensing education (typically 60-90 hours)
• Passing a state licensing exam
• Background check
• Application fees

Real estate agents work with clients throughout the entire property transaction process. They typically work under a supervising broker and cannot operate independently unless they obtain a broker’s license.

Key responsibilities include:

• Property listings: Marketing homes for sellers and finding properties for buyers
• Market research: Analyzing property values and neighborhood trends
• Negotiations: Representing clients in price discussions and contract terms
• Paperwork: Helping with contracts, disclosures, and other required documents

Real estate agents earn money through commissions on completed transactions. The commission is usually a percentage of the property’s sale price, which is split between the agents and brokers involved.

What Is a Realtor, and How Are They Different?

A Realtor is a real estate professional who is a member of the National Association of Realtors (NAR). The term “Realtor” is a registered trademark that can only be used by NAR members.

All Realtors are licensed real estate agents or brokers, but not all real estate agents are Realtors. This is the fundamental difference between Realtor and real estate agent — it’s about professional membership, not job function.

To become a Realtor, a real estate professional must:

1. Hold an active real estate license
2. Join a local NAR-affiliated real estate association
3. Pay membership dues
4. Agree to follow NAR’s Code of Ethics

Comparison: Realtor vs. Real Estate Agent

The real estate agent versus Realtor difference isn’t about what they can do for clients — both can help buy and sell property. The difference is in the professional standards they follow and the resources they can access.

Why Does NAR Membership Matter?

The National Association of Realtors (NAR) is America’s largest trade association for real estate professionals. Founded in 1908, NAR now has over 1.5 million members nationwide.

NAR membership offers benefits to both real estate professionals and their clients. Understanding these benefits helps explain the realtor vs real estate agent distinction.

1. Higher Ethical Standards

Realtors must follow the NAR Code of Ethics, which goes beyond state licensing requirements. This code has been in place since 1913 and is regularly updated.

The Code of Ethics covers:

• Duties to clients and customers
• Duties to the public
• Duties to other Realtors

For example, Realtors must disclose if they have any personal interest in a property they’re showing to clients. They must also present all offers and counteroffers quickly and honestly. These rules create a higher standard of practice than what’s legally required of non-NAR agents.

2. Professional Resources

NAR provides members with tools and resources to improve their service quality. These include:

• Market data and research reports
• Legal updates and risk management resources
• Educational courses and designations
• Technology tools and property databases

Many local Multiple Listing Services (MLS) are connected to NAR membership, though this varies by location. The MLS is a database of properties for sale that helps agents find homes for buyers and market sellers’ properties.

3. Industry Influence

NAR advocates for policies that affect real estate at local, state, and national levels. This advocacy can benefit both real estate professionals and property owners.

NAR lobbies for:

• Property rights
• Mortgage availability
• Tax benefits for homeowners
• Fair housing policies

This political involvement gives Realtors a voice in shaping laws that affect real estate transactions and property ownership.

Real Estate Broker vs. Realtor vs. Agent

The real estate industry has three main professional roles that are often confused: agents, brokers, and Realtors. Understanding the differences helps clarify who does what in real estate transactions.

1. Real Estate Broker

A real estate broker has advanced beyond the agent level by completing additional education and passing a broker’s exam. They can work independently and hire agents to work for them. Brokers have more responsibility and liability than agents.

Requirements vary by state but typically include:

• 1-3 years of experience as an agent
• Additional education courses (often 60-90 hours)
• Passing a broker’s licensing exam

Brokers can:

• Own a real estate brokerage
• Hire and manage agents
• Work independently without supervision
• Handle trust accounts and earnest money deposits

The difference between broker and Realtor is that “broker” refers to a license level, while “Realtor” refers to NAR membership. A broker can be a Realtor if they join NAR, but not all brokers are Realtors.

2. Realtor

A Realtor can be an agent or broker who has joined NAR. The term refers to membership status, not job function. This professional designation crosses license levels and indicates a commitment to NAR’s standards.

Realtors have access to:

• NAR’s Code of Ethics training
• Professional development resources
• Networking opportunities with other members
• Political advocacy through NAR

A newly licensed agent who joins NAR is a Realtor, while a 20-year veteran who isn’t a NAR member is not a Realtor.

3. Agent

A real estate agent is the entry-level position in the industry. After getting licensed, agents must work under a broker who supervises their activities and transactions.

Agents typically:

• Work with clients directly
• Show properties and host open houses
• Prepare market analyses
• Help with paperwork and negotiations

The difference between Realtor and agent is that “agent” refers to a license level and job function, while “Realtor” indicates NAR membership. An agent can become a Realtor by joining NAR.

How Following a Code of Ethics Shapes Professionalism

The NAR Code of Ethics is a key factor that separates Realtors from non-member real estate agents. This code establishes professional standards that all NAR members must follow.

The Code of Ethics contains 17 Articles covering different aspects of real estate practice. Each Article has supporting Standards of Practice that provide specific guidance.

Realtors receive training on the Code when they join NAR and must complete ethics training every three years to maintain membership. This ongoing education helps ensure that Realtors understand their ethical obligations.

1. Client First Principle

The Code of Ethics requires Realtors to put their clients’ interests above their own. This fiduciary responsibility means Realtors must:

• Protect client confidentiality
• Provide honest advice even when it might reduce their commission
• Disclose all known facts about a property
• Avoid conflicts of interest

For example, if a Realtor knows about a problem with a property that might lower its value, they must tell their buyer client even if it means losing the sale and commission. This client-first approach builds trust in the real estate process.

2. Fair Treatment

The Code requires Realtors to treat all parties fairly, regardless of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.

This commitment to fair treatment goes beyond federal Fair Housing laws. Realtors pledge to:

• Provide equal professional service to everyone
• Not discriminate in real estate practices
• Use inclusive language in advertising
• Educate themselves about fair housing

These standards help ensure that all clients receive the same quality of service, regardless of their background or characteristics.

3. Accountability

The Code of Ethics includes an enforcement mechanism that holds Realtors accountable for their actions. Local Realtor associations handle complaints and can discipline members who violate the Code.

The accountability process includes:

• Filing a complaint with the local association
• Ethics hearings before a panel of peers
• Potential discipline including fines, education, or suspension

This system provides an additional layer of oversight beyond state licensing boards. Clients who have concerns about a Realtor’s conduct can file an ethics complaint, which isn’t an option with non-NAR agents.

Should You Become a Realtor?

If you’re a licensed real estate agent or planning to become one, you might be wondering whether it’s worth joining the National Association of Realtors (NAR) and becoming a Realtor.

Pros:

• Credibility: The Realtor title can build client trust.

• MLS Access: Some regions limit full access to Realtors.

• Professional Development: Resources, training, and networking opportunities.

Cons:

• Cost: Membership dues and continuing education.

• Not Required: You can succeed as a non-Realtor agent, especially with strong local knowledge and client service.

Key Takeaways About Realtors and Real Estate Agents

Understanding the difference between Realtor and real estate agent helps clarify the professional landscape in real estate. Here’s what you need to remember:

All Realtors are real estate agents or brokers, but not all real estate agents or brokers are Realtors. The title “Realtor” indicates membership in the National Association of Realtors and commitment to its Code of Ethics.

Both Realtors and non-NAR agents must be licensed by their state. The basic qualification to work in real estate is a state license, which both groups must obtain.

NAR membership provides additional resources and requires additional commitments. Realtors gain access to professional tools but must also follow the NAR Code of Ethics and pay membership dues.

For real estate professionals, building a strong online presence is essential regardless of NAR membership status. A professional website showcases your expertise and helps clients find you online.

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Frequently Asked Questions About Realtors vs. Real Estate Agents

Do all MLS providers require you to be a Realtor?

No, not all Multiple Listing Services require NAR membership. Some local MLS organizations allow access through local associations without requiring Realtor status, though policies vary by location.

Can real estate agents work independently without joining a brokerage?

No, newly licensed agents must work under a broker’s supervision according to state laws. Agents cannot operate independently until they obtain a broker’s license, regardless of whether they’re Realtors.

Does becoming a Realtor typically increase an agent’s income?

While NAR membership involves fees, many Realtors report that the networking, educational resources, and credibility often lead to increased business opportunities that can offset the cost of membership.

Are Realtors required to complete more education than non-Realtor agents?

Yes, Realtors must complete NAR’s Code of Ethics training every three years in addition to any state-mandated continuing education, giving them additional professional development requirements.