The question of whether "real estate agent" and "Realtor" are the same thing often comes up, especially for those who aren't in the real estate business. People working in real estate know they're different, but only some people outside the industry know it. Many people aren't clear on what sets a real estate agent apart from a Realtor or if there's even a real difference. Understanding the distinction between the two can help demystify the roles they play.
You might be in the market to buy, sell, or rent a property, so the help of a real estate professional is crucial. The real estate market is competitive, and finding the right professional that fits your needs might be a challenge. However, understanding the difference between a real estate agent and a Realtor is vital before you start reviewing agents.
Let's break it down and get a clearer picture of what makes a real estate agent different from a Realtor.
What is the difference between a real estate agent and a Realtor?
In real estate, there are two main terms you'll often hear: real estate agent and Realtor. While they may seem interchangeable, they have distinct differences.
A real estate agent is anyone licensed to help individuals or businesses buy and sell properties, whether commercial buildings or residential homes. They facilitate transactions, provide guidance on market trends, and handle negotiations between buyers and sellers.
On the other hand, a Realtor is a specific type of real estate agent who holds membership in the National Association of Realtors (NAR), the largest trade association for real estate professionals in the United States. Being a Realtor involves adhering to a strict code of ethics and standards of practice set forth by the NAR.
So, why the confusion? The term "real estate agent" can be cumbersome and wordy. Many people use "Realtor" to streamline conversations as a catch-all for anyone buying and selling real estate.
However, it's essential to understand the difference between a real estate agent and a Realtor. While all Realtors are real estate agents, not all real estate agents are Realtors. The distinction lies in their NAR membership and commitment to upholding its principles and guidelines.
How to become a real estate agent?
To become a licensed real estate agent, you need to meet specific requirements set by your state. These requirements can vary, but generally, you'll need to complete a set number of classes and pass a state-administered exam.
Aspiring agents must attend anywhere from 30 to 90 hours of classroom instruction from an accredited institution, like a college or technical school. The exact hours depend on where you're applying for your license.
Once you've completed your coursework, you must pass an exam covering national and state-specific real estate laws and practices.
Remember, obtaining a license isn't a one-time thing. You'll need to pay an annual fee to keep your license active and renew it every one or two years, depending on your state's regulations. Additionally, some states require you to take continuing education courses before you can renew your license.
The benefits of hiring a real estate agent are numerous, from market knowledge to marketing skills. Opting for one might be a good choice, but we’ll discuss this later on.
How to become a Realtor?
Based in Chicago, NAR boasts over 1 million members nationwide, and it's not just for real estate agents and brokers. Membership is open to property managers, appraisers, real estate counselors, and others in the real estate field.
If you're interested in joining NAR, you'll need to start by joining one of NAR’s 1,400 local real estate associations. There's a one-time application fee, and once the Board of Directors approves your membership, you'll pay prorated membership dues.
To join NAR, you'll need a valid real estate license, active involvement in the real estate business, a clean record with no history of professional misconduct, and no recent or ongoing bankruptcy proceedings.
Suppose you're the owner or principal of a real estate firm, such as a sole proprietor, partner, corporate officer, majority shareholder, or branch office manager representing the principal. In that case, you'll need to join a Realtor association before non-principal members can join.
Choosing between a real estate agent and a Realtor
When deciding between a real estate agent and a Realtor, a few key factors can help you make an informed decision.
Firstly, consider the level of expertise and experience that you're looking for. Both real estate agents and Realtors may vary in terms of their background and knowledge of the market. Some may specialize in specific properties or areas, while others may have a more general skill set. Take the time to research potential professionals and find someone who has the expertise to meet your needs.
Trust and rapport are also essential when choosing between a real estate agent and a Realtor. Buying or selling a home is a significant financial transaction, so it's necessary to feel comfortable with the person you're working with. Take the time to meet with potential professionals and see how well you click. Communication is vital, so make sure you can trust and rely on them throughout the process.
Costs and fees are another consideration when choosing between a real estate agent and a Realtor. Both typically work on commission, meaning they only get paid when a transaction is completed. However, commission rates can vary, so you must discuss fees upfront and ensure you understand how much you'll pay for their services.
Conclusion
In conclusion, while the terms "real estate agent" and "Realtor" are often used interchangeably, there's a clear distinction between the two. A real estate agent is licensed to facilitate property transactions. In contrast, a Realtor is a real estate agent who is a member of the National Association of Realtors (NAR), adhering to a strict code of ethics.
When choosing between a real estate agent and a Realtor, consider factors such as expertise, trust, rapport, and costs. Researching potential professionals and finding someone with the proper knowledge and personality fit can significantly impact your real estate experience. Additionally, discussing fees upfront ensures transparency and helps you understand the financial aspects of working with either a real estate agent or a Realtor.
Whether you opt for a real estate agent or a Realtor depends on your preferences and needs. Both can provide valuable assistance in buying or selling property, but understanding the nuances between the two can help you make an informed decision that aligns with your goals and expectations.
