Real Estate Agent Versus Realtor: Key Differences for Buyers & Sellers

When you decide to buy or sell a home, you'll quickly encounter various professional titles. The terms "real estate agent" and "Realtor" are often used interchangeably, but they don't mean the same thing. Understanding the debate of real estate agent versus realtor is crucial because the distinction involves standards of practice, ethics, and accountability that can directly impact your transaction. While every Realtor is a licensed real estate agent, not every real estate agent has earned the title of Realtor.

This difference stems from membership in the National Association of REALTORS® (NAR), the largest trade association in the United States. This membership binds a professional to a higher ethical standard than what state law requires, offering you an additional layer of confidence and protection. Knowing this distinction helps you make a more informed decision when choosing someone to guide you through one of the biggest financial decisions of your life.

Quick Summary

• All Realtors Are Agents, But Not Vice Versa: A real estate agent is a professional licensed by their state to facilitate property transactions. A Realtor is a licensed agent who is also a member of the National Association of REALTORS® (NAR).
• The Code of Ethics is the Key Difference: The primary distinction is that Realtors voluntarily agree to abide by the NAR's strict Code of Ethics, which sets a higher standard of professional conduct than state licensing laws.
• Membership Provides Resources: Realtors have access to a vast network of resources, including advanced educational opportunities, market data, and transaction management tools, which can benefit their clients.
• Dispute Resolution: The Code of Ethics includes a formal process for handling disputes between clients and Realtors or between Realtors themselves, often involving mediation or arbitration, which can be faster and less costly than legal action.

Real Estate Agent vs. Realtor: A Side-by-Side Comparison

To understand the core differences at a glance, this table breaks down the essential distinctions between a real estate agent and a Realtor.

Feature	Real Estate Agent	Realtor®
State License	Required	Required
NAR Membership	Not Required	Required
Code of Ethics	Must follow state real estate laws	Must follow state laws AND the NAR Code of Ethics
Title Usage	Can use "real estate agent," "salesperson," or "broker"	Can use the trademarked term "Realtor®"
Dispute Resolution	Handled through state licensing boards or courts	Handled through local Realtor association's arbitration/ethics committees
Continuing Education	State-mandated hours required for license renewal	State-mandated hours PLUS NAR-mandated ethics training

What is a Real Estate Agent?

A real estate agent is a professional who has earned a license to help people buy, sell, or rent all sorts of housing and real estate. To obtain this license, an individual must complete a certain number of state-approved coursework hours and pass a comprehensive licensing exam. These requirements ensure that the agent has a fundamental understanding of real estate laws, principles, and practices within their specific state.

The responsibilities of a real estate agent are broad. For buyers, they find properties that match their criteria, schedule viewings, provide market analysis to determine a fair offer price, and guide them through the negotiation and closing process. For sellers, they help set a competitive listing price, market the property to potential buyers, host open houses, and negotiate offers to get the best possible terms.

Every state has a real estate commission or board that governs the licensing and conduct of agents. These bodies set the minimum legal and ethical standards that agents must follow to maintain their license. If an agent violates these state regulations, they can face penalties ranging from fines to license suspension or revocation. However, their obligations are primarily defined by state law, which is the baseline for professional conduct in the industry.

What is a Realtor®?

A Realtor is a licensed real estate agent (or broker, appraiser, or property manager) who has taken an additional step to become a member of the National Association of REALTORS® (NAR). This is not a default title; it's a professional designation that signifies a commitment to a higher standard of conduct. By joining NAR, these professionals voluntarily agree to be bound by the association's strict Code of Ethics and Standards of Practice.

The term "Realtor" is a registered trademark owned by NAR and can only be used by its members. This distinction is a key part of the realtor vs real estate agent conversation. The NAR Code of Ethics, first adopted in 1913, was one of the first codes of ethical duties established by any business group. It outlines a Realtor's duties to clients, the public, and other Realtors, and it often goes above and beyond what state law requires.

For example, the Code requires Realtors to put their clients' interests above their own, provide equal professional services to all people without discrimination, and be truthful in their advertising. This commitment is not just a suggestion; it's enforceable. Clients who feel a Realtor has acted unethically can file a complaint with the local Realtor association, which will investigate the matter and can discipline the member if they are found to be in violation. This accountability mechanism is a significant benefit for consumers working with a Realtor.

The Core Differences Between Real Estate Agents and Realtors

While both professionals are licensed to help you with real estate transactions, the differences are significant and center on three key areas: membership, ethical obligations, and accountability.

1. Membership in the National Association of REALTORS® (NAR)

This is the foundational difference. A real estate agent is simply a licensee of the state. A Realtor is a licensee who has also joined a three-tiered organization: their local association or board, their state association, and the National Association of REALTORS®. This membership requires paying annual dues and officially subscribing to the organization's principles.

This membership connects them to a network of over 1.5 million professionals across the country. It provides access to a wealth of resources, including market statistics, educational courses for advanced certifications, and powerful advocacy on behalf of homeowners and the real estate industry in Washington, D.C.

2. Adherence to the NAR Code of Ethics

This is arguably the most important distinction for consumers. The NAR Code of Ethics contains 17 articles that detail a Realtor's professional responsibilities. These articles cover duties to clients and customers, duties to the public, and duties to other Realtors.

For example, Article 1 requires Realtors to "pledge themselves to protect and promote the interests of their client." This is known as a fiduciary duty, which is a higher standard than what is sometimes required by state law. Article 11 requires Realtors to only provide services within their field of competence, preventing them from giving advice on matters they aren't qualified for, such as legal or structural engineering issues.

3. Accountability and Dispute Resolution

If you have a dispute with a real estate agent who is not a Realtor, your primary recourse is typically the state licensing board or the court system. This can be a slow and expensive process. However, if you have an issue with a Realtor, you can file a complaint with their local Realtor association. These associations have established procedures for handling ethics complaints and arbitrating financial disputes. This process is often faster and more cost-effective than litigation, providing consumers with a practical way to hold their representative accountable.

Legal Requirements for a Real Estate Agent

Becoming a licensed real estate agent involves a rigorous, state-regulated process designed to ensure a baseline level of competency and knowledge. While the specific requirements vary from state to state, they generally follow a consistent path.

First, an aspiring agent must meet the basic eligibility criteria, which typically include being at least 18 or 19 years old, holding a high school diploma or GED, and being a legal U.S. resident. Some states also have specific residency requirements.

Next is the pre-licensing education. Every state mandates a specific number of hours of approved real estate coursework. This can range from as little as 40 hours in some states to over 180 hours in others, like Texas. These courses cover essential topics such as real estate law, contract law, property rights, financing, and state-specific regulations.

The goal is to provide a solid foundation in the principles and practices of the real estate industry.

After completing the coursework, the candidate must pass the state's official real estate licensing exam. This exam is typically divided into two parts: a national section covering general real estate principles and a state-specific section covering local laws and regulations. A passing score on both sections is required to move forward. Finally, the applicant must pass a criminal background check and officially apply for their license with the state's real estate commission, often requiring sponsorship from a licensed real estate broker who will supervise their initial work.

Additional Requirements to Become a Realtor

Meeting the state's legal requirements is just the first step for someone who wants to become a Realtor. Once an individual holds an active real estate license, they can choose to pursue the Realtor designation by joining the National Association of REALTORS®.

The process begins at the local level. The agent must join a local Realtor association or board. Membership in the local board automatically extends membership to the state association and the National Association of REALTORS®. This three-tiered structure ensures that members are connected to the industry at every level.

Upon joining, the new member must formally agree to subscribe to the NAR's Code of Ethics. This is not a passive agreement; Realtors are required to complete periodic training on the Code of Ethics to ensure they remain current with its principles and applications. As of 2024, this training is required every three years. This ongoing educational requirement reinforces the ethical standards that distinguish Realtors from other licensees.

Finally, becoming a Realtor involves a financial commitment. Members must pay annual dues to their local, state, and national associations. These dues fund the associations' activities, including professional development programs, industry research, advocacy efforts, and the enforcement of the Code of Ethics. This entire process demonstrates a voluntary commitment to a higher level of professionalism and accountability.

The Tangible Benefits of Hiring a Realtor

When you're deciding between an agent or realtor, understanding the practical benefits of the Realtor designation can make the choice clearer. The commitment to the NAR Code of Ethics isn't just symbolic; it translates into real-world advantages for you as a client.

One of the most significant benefits is the enhanced fiduciary duty. While state laws often require agents to be fair and honest, the NAR Code of Ethics explicitly states that Realtors must put the client's interests first. This means they are ethically bound to protect your financial position, maintain confidentiality, and act as your dedicated advocate throughout the entire transaction. This higher standard provides an extra layer of assurance that your best interests are being prioritized.

Another key benefit is the robust system for dispute resolution. If you encounter a problem with a Realtor, you don't have to immediately resort to expensive and time-consuming legal action. You can file a complaint with the local Realtor association. This triggers a formal review process by a panel of the Realtor's peers.

This system is designed to be impartial and efficient, offering solutions like mediation or arbitration that can resolve conflicts without the need for a lawsuit.

Furthermore, Realtors have access to a vast array of resources that non-member agents do not. This includes comprehensive market data, advanced professional training and certification programs (like Accredited Buyer's Representative or Certified Residential Specialist), and a nationwide network of other professionals. An agent who invests in these resources is often better equipped to provide expert advice, navigate complex transactions, and ultimately achieve a better outcome for their clients.

Clearing Up Common Misconceptions

Several myths and misconceptions surround the realtor vs real estate agent topic. Clarifying these can help consumers make more confident decisions.

Misconception 1: "Realtor" is just a fancy word for any real estate agent.
This is the most common misunderstanding. As detailed above, "Realtor" is a professional designation for members of NAR who adhere to its Code of Ethics. It's a mark of commitment to a higher standard, not a generic job title. Using the term to refer to any agent is incorrect and diminishes the value of the designation.

Misconception 2: Hiring a Realtor is more expensive than hiring a non-member agent.
Compensation in real estate is typically commission-based and is always negotiable. Whether an agent is a Realtor or not has no direct bearing on their commission rate. The commission is determined by the agreement between the seller and their listing brokerage. The value a Realtor brings through their ethical commitment and access to resources can often lead to a smoother transaction and better financial outcome, making their service a strong investment.

Misconception 3: The Code of Ethics has no real teeth.
Some people may assume the Code of Ethics is merely a set of suggestions. In reality, it is a living document that is strictly enforced by local Realtor associations across the country. Violations can result in serious consequences for the Realtor, including mandatory training, fines, letters of reprimand, and even suspension or termination of their membership. This enforcement mechanism ensures that the ethical standards are upheld and provides real protection for the public.

The Role and Importance of the National Association of Realtors (NAR)

The National Association of REALTORS® is more than just a membership organization; it's a powerful force that shapes the real estate industry in America. Founded in 1908, NAR has grown to become the nation's largest trade association, representing professionals in all aspects of residential and commercial real estate.

One of its most crucial functions is advocacy. NAR has a significant presence in Washington, D.C., where it lobbies Congress on issues related to homeownership and real estate. It champions policies that protect private property rights, promote affordable housing, and maintain a stable housing market. For example, NAR has been a strong advocate for preserving the mortgage interest deduction and other tax benefits that make homeownership more accessible for millions of Americans.

This work benefits not just its members, but all homeowners.

NAR is also a hub for professional development and research. It provides its members with a vast library of educational resources, including webinars, workshops, and certification programs that allow Realtors to specialize in specific niches like green real estate, international properties, or working with seniors. The association's research division produces some of the most widely cited reports on housing market trends, providing Realtors with the data and insights they need to advise their clients effectively.

Finally, NAR is the guardian of the Realtor brand and the Code of Ethics. It ensures that the term "Realtor" remains a trusted symbol of professionalism and integrity. By setting and enforcing high ethical standards, NAR helps to build public trust in real estate professionals and provides a framework for a more orderly and ethical marketplace.

How to Choose Between a Real Estate Agent and a Realtor

When you're ready to hire a professional, the choice is ultimately yours. Both licensed agents and Realtors are legally qualified to assist you. However, if the added layer of ethical assurance and accountability is important to you, seeking out a Realtor is a wise first step.

Here’s a practical guide to making your choice:

1. Verify Their Status: You can easily check if an agent is a Realtor. Look for the registered Realtor® trademark symbol after their name on their business card, website, or marketing materials. You can also check their status through the local Realtor association's website.

2. Conduct Interviews: Don't hire the first person you meet. Interview at least three different professionals, including both Realtors and non-member agents if you wish. This will give you a feel for different personalities, business styles, and levels of experience.

3. Ask About the Code of Ethics: During the interview, ask the Realtor candidates how the Code of Ethics impacts the way they do business. A dedicated professional will be able to give you specific examples of how they apply its principles to protect their clients. Their answer will reveal how seriously they take their commitment.

4. Check References and Reviews: Look for online reviews on platforms like Zillow, Realtor.com, and Google. Ask the candidates to provide you with a list of recent clients you can speak with. Hearing directly from past clients is one of the best ways to gauge an agent's competence, communication skills, and professionalism.

Pro Tip: Ask potential agents about their communication style and the systems they use to keep clients informed. Top professionals, whether they are an agent or a Realtor, often use client relationship management (CRM) software like Follow Up Boss to ensure no detail is missed and that you receive timely updates throughout the process.

Tips for Working with Any Real Estate Professional

Once you've selected your professional, whether an agent or a Realtor, building a strong working relationship is key to a successful transaction. Clear communication and mutual understanding are the foundation of this partnership.

First, be open and honest about your needs, budget, and timeline from the very beginning. The more information your agent has, the better they can serve you. If you're a buyer, be specific about your must-haves and deal-breakers. If you're a seller, be clear about your financial goals and any constraints you may have.

Second, understand the agency relationship. Before you start working together, the professional should provide you with a document that explains how they represent you (e.g., as a seller's agent, buyer's agent, or dual agent). Read this carefully and ask questions if anything is unclear. This document outlines their legal and ethical duties to you.

Finally, trust their expertise but stay involved. A great real estate professional will provide you with data, advice, and guidance, but the final decisions are always yours. Ask questions, review documents thoroughly, and don't be afraid to voice your concerns. A successful partnership is collaborative, and your active participation is essential.

Professionals who use tools like Wise Agent are often better organized, managing transaction dates, documents, and communication in one place, which leads to a smoother experience for you.

Frequently Asked Questions (FAQ)

Is it better to say realtor or real estate agent?

While many people use the terms interchangeably in casual conversation, it is more accurate to use them correctly. If you know the professional is a member of the National Association of REALTORS®, it is appropriate to call them a Realtor. If you are unsure of their membership status or if they are not a member, the correct term is "real estate agent."

Using the term "Realtor" correctly shows respect for the professional designation and the ethical commitment it represents. In a professional context, accuracy is always preferred. However, most agents will understand what you mean regardless of which term you use.

Who makes more money, a realtor or a real estate agent?

There is no direct correlation between being a Realtor and earning a higher income. An agent's income is based on the number and value of the transactions they close, which is a result of their skills, experience, work ethic, and market conditions. A highly successful real estate agent who is not a Realtor can certainly earn more than a Realtor who is less experienced or productive.

However, many top-producing agents choose to become Realtors because they believe the resources, networking opportunities, and professional standards provided by NAR contribute to their success. The access to advanced education and market data can give them a competitive edge, which may indirectly lead to a higher income over time.

Can you be a real estate agent but not a Realtor?

Yes, absolutely. This is a key point in the real estate agent versus realtor discussion. An individual can obtain a state real estate license and practice professionally as a real estate agent without ever joining the National Association of REALTORS®. Membership in NAR is completely voluntary.

Some agents choose not to join for various reasons, such as the cost of dues or a disagreement with NAR's policies. They are still legally authorized to represent clients in real estate transactions and are regulated by their state's real estate commission.

Is a Realtor higher than a real estate agent?

In terms of legal authority to practice real estate, a Realtor is not "higher" than a real estate agent. Both are state-licensed professionals with the same legal permissions. However, in terms of professional standards and ethical commitments, the Realtor designation is considered a higher level of practice.

By voluntarily agreeing to abide by the NAR Code of Ethics, Realtors hold themselves to a standard that exceeds the legal minimums required by the state. This commitment to a higher ethical plane is what gives the Realtor title its respected status within the industry and among consumers.

How much does a Realtor make on a $300,000 house?

The commission on a real estate transaction is typically a percentage of the home's sale price, and it is negotiable. A common commission rate is around 5-6%, but this can vary. Let's assume a 6% commission on a $300,000 house, which would be $18,000.

This $18,000 is not what the individual Realtor takes home. First, it is split between the brokerage representing the seller and the brokerage representing the buyer (often 50/50, so $9,000 each). Then, the individual Realtor must split their portion with their own brokerage. This split varies widely, but a 50/50 split is common for new agents.

In that case, the Realtor would receive $4,500 before taxes and business expenses.

Final Thoughts

Navigating the world of real estate can be complex, and choosing the right professional to guide you is one of the most important decisions you'll make. While both licensed real estate agents and Realtors can legally help you buy or sell a property, the Realtor designation offers an additional layer of commitment to ethical conduct, professionalism, and client advocacy.

The distinction is not merely semantic; it's about a voluntary pledge to uphold a higher standard of practice through the NAR Code of Ethics. By understanding the difference between an agent or realtor, you empower yourself to select a professional whose values and commitments align with your own.

Ultimately, the best professional for you is one who is experienced, knowledgeable, and trustworthy. But knowing that a professional is a Realtor gives you the added assurance that they are dedicated to putting your interests first, providing a valuable measure of peace of mind during a significant life event.