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

When you decide to buy or sell a home, you'll encounter various professionals, and the terms used can be confusing. The discussion of a real estate agent versus realtor is one of the most common points of uncertainty. While the titles are often used interchangeably, they don't mean the same thing. Understanding the distinction is crucial for making an informed decision about who you trust with one of the biggest financial transactions of your life.

All Realtors are licensed real estate agents, but not all real estate agents are Realtors. The primary difference lies in membership with the National Association of REALTORS® (NAR) and adherence to its strict Code of Ethics. This commitment to a higher ethical standard is what sets a Realtor apart from a real estate agent who is not a member.

This guide will break down everything you need to know about the realtor vs real estate agent comparison. We'll explore their qualifications, duties, ethical obligations, and what these differences mean for you as a client. By the end, you'll be able to confidently choose the right professional to guide you through your real estate journey.

In a Nutshell

• Core Difference: A Realtor is a licensed real estate agent who is also a member of the National Association of REALTORS® (NAR). This membership requires them to abide by a strict Code of Ethics.
• Licensing vs. Membership: A real estate agent is licensed by their state to help people buy and sell property. A Realtor has that state license and has joined the NAR, a professional organization.
• Ethical Standard: The NAR's Code of Ethics imposes duties to clients, the public, and other Realtors that are higher than the legal requirements for a standard real estate agent.
• Practical Impact: Working with a Realtor provides an extra layer of accountability. They have a formal system for handling ethical complaints and disputes, offering you more protection.
• Cost Is Not a Factor: The title of agent or Realtor does not determine the commission rate. Commissions are always negotiable and are not set by law or any organization.

Real Estate Agent vs. Realtor: A Quick Comparison

Before we dive deep, here’s a side-by-side look at the fundamental differences. This table clarifies the distinction between an agent or realtor at a glance.

Feature	Real Estate Agent	Realtor®
State License	Required	Required
NAR Membership	Not Required	Required
Adherence to Code of Ethics	Not Required (must follow state laws)	Required
Use of the term "Realtor®"	Not Permitted	Permitted
Access to MLS	Usually through a brokerage	Usually through local NAR association
Ethical Complaint Process	Handled by state licensing board	Handled by local Realtor association
Continuing Education	State-mandated hours	State-mandated hours + NAR ethics training

What Is a Real Estate Agent?

A real estate agent is a professional who has passed a state-specific exam and earned a license to help people buy, sell, or rent real estate. They are legally authorized to facilitate real estate transactions under the supervision of a licensed real estate broker. Think of the state license as the minimum requirement to practice in the industry.

To become a real estate agent, an individual must complete a certain number of hours of pre-licensing coursework. The required hours vary by state but typically range from 40 to over 150 hours. This education covers fundamental topics like real estate law, property rights, contracts, and financing. After completing the coursework, they must pass the state licensing exam.

Once licensed, an agent must work for a sponsoring broker. They cannot operate independently. The broker is responsible for overseeing the agent's transactions to ensure they comply with all state laws and regulations. An agent's primary duties include representing buyers or sellers, marketing properties, negotiating offers, and guiding clients through the closing process.

Their actions are governed by the real estate laws of their state, which focus on legal compliance rather than a specific ethical code.

What Is a Realtor®?

A Realtor is a licensed real estate agent who has taken the additional step of becoming a member of the National Association of REALTORS® (NAR). Founded in 1908, NAR is the largest trade association in the United States, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industries.

The term "Realtor" is a registered trademark. This means only members of NAR are legally allowed to use it to identify themselves. To become a Realtor, a licensed agent must join one of NAR's over 1,200 local associations or boards. Membership gives them access to a wide range of resources, including market data, educational opportunities, and powerful advocacy on behalf of property owners.

However, the most significant aspect of being a Realtor is the mandatory adherence to the NAR's strict Code of Ethics. This code, first adopted in 1913, sets a higher standard of professional conduct than what is required by state law. It's a living document, updated annually to reflect current industry practices, and it forms the basis of a Realtor's commitment to integrity and professionalism.

The NAR Code of Ethics: The Defining Difference

The Code of Ethics is the true heart of the real estate agent versus realtor debate. While a non-member agent is bound by state and federal laws, a Realtor voluntarily agrees to a higher level of professional responsibility. The Code is based on the principle of "Whatsoever ye would that others should do to you, do ye even so to them."

The Code is comprised of 17 Articles that cover a Realtor's duties to three groups: clients and customers, the public, and other Realtors. It's not just a set of suggestions; it's a binding agreement with enforceable consequences for violations. Every Realtor must complete ethics training every three years to maintain their membership.

Here are a few key articles and what they mean for you:

• Article 1: Protecting the Client's Interests. This article requires Realtors to pledge themselves to protect and promote the interests of their client. This duty to the client is primary, but it does not relieve Realtors of their obligation to treat all parties honestly.
• Article 2: Avoiding Misrepresentation. Realtors must avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. This means they have an ethical duty to be transparent, not just a legal one.
• Article 9: Written Agreements. To avoid confusion, Realtors must ensure that all agreements (listing contracts, purchase agreements, etc.) are in writing, in clear and understandable language, and that all parties receive a copy.
• Article 12: Honesty in Advertising. Realtors must be honest and truthful in their real estate communications and present a true picture in their advertising, marketing, and other representations. They cannot advertise services they don't provide or use misleading branding.

This ethical framework is enforced by local Realtor associations. If a client believes a Realtor has violated the Code, they can file a formal complaint, which will be investigated through a process that can include hearings and disciplinary action. This provides a level of consumer protection that doesn't exist with non-member agents, whose complaints are typically handled only by state licensing bodies, often for more severe legal infractions.

Pro Tip: When interviewing a potential professional, ask them to explain a few articles from the Code of Ethics and how they apply them in their business. A true professional will be able to articulate their commitment to these principles clearly.

Practical Implications for Home Buyers and Sellers

So, does the distinction between an agent or realtor really matter when you're buying or selling a house? In practice, it can make a significant difference in your experience and protection.

1. A Higher Standard of Conduct: The Code of Ethics requires Realtors to put your interests first. This fiduciary duty is a powerful promise. It means your Realtor is ethically bound to act in your best interest, maintain confidentiality, and provide full disclosure about all aspects of the transaction.

2. A Clear Path for Dispute Resolution: If you have a problem with a real estate agent who is not a Realtor, your main recourse is to file a complaint with the state licensing board or pursue legal action. With a Realtor, you have an additional option: filing an ethics complaint with the local Realtor association. This process is often faster and less costly than litigation and is specifically designed to address violations of professional standards.

3. Commitment to the Profession: Joining NAR is a choice. Agents who become Realtors are demonstrating a commitment to their profession and to a higher standard of practice. They are investing in their career through dues and ongoing education requirements, which often signals a greater level of seriousness and professionalism.

4. Access to Resources: While not exclusive, Realtors often have enhanced access to tools, data, and forms through their local associations. This includes standardized contracts and addenda that are regularly updated to comply with changing laws, which can provide an extra layer of legal protection in a transaction.

While many non-member agents are ethical and highly competent, the Realtor designation gives you a clear, verifiable standard to rely on. It's a signal that the professional you're working with has formally agreed to uphold a specific set of values and be held accountable to them.

Pricing and Cost: Does a Realtor Cost More?

This is a common question, and the answer is simple: no. The professional title—agent or Realtor—has no direct impact on the cost of their services. Real estate commissions are not fixed by law and are always negotiable between the consumer and the brokerage.

The commission is typically a percentage of the home's sale price and is paid by the seller from the proceeds of the sale. This commission is then split between the seller's brokerage and the buyer's brokerage. The individual agents then receive their share from their respective brokers.

While a Realtor pays annual dues to NAR and their local association, these are business operating costs for the professional. These fees are not passed directly on to you as a client. You will not see a "Realtor fee" on your closing statement. The commission rate you negotiate will be based on the agent's experience, the services provided, and local market conditions, not their membership status.

Therefore, when choosing a professional, you should focus on their track record, communication skills, and marketing plan rather than worrying that one title will cost more than the other.

The Tools That Power Top Professionals

Whether an individual is a real estate agent or a Realtor, their success hinges on organization, communication, and efficiency. Top-performing professionals in today's market rely on sophisticated software to manage their clients, transactions, and marketing efforts. This technology helps them provide a higher level of service.

For instance, managing dozens of leads and client relationships requires a powerful Customer Relationship Management (CRM) system. A platform like Follow Up Boss helps agents track conversations, automate follow-ups, and ensure no client falls through the cracks. This level of organization is critical for providing timely and personalized service.

Furthermore, a real estate transaction involves a mountain of paperwork. Modern professionals use transaction management software to streamline this process. A tool like Dotloop allows agents and their clients to sign documents electronically, track deadlines, and store all transaction-related files in one secure online location. This not only saves time but also reduces the risk of errors and ensures compliance.

When you hire a professional, you're also hiring their systems. An agent or Realtor who invests in high-quality technology is better equipped to manage the complexities of your transaction and provide a smooth, transparent experience.

Frequently Asked Questions (FAQ)

This section addresses some of the most common questions that arise when comparing a real estate agent versus a Realtor.

Is it better to say realtor or real estate agent?

It's most accurate to use the term that applies to the specific professional you're discussing. If you know they are a member of the National Association of REALTORS®, calling them a Realtor is correct. If you're unsure of their membership status or are speaking generally, "real estate agent" is a safe and accurate term.

Remember, "Realtor" is a trademarked title signifying membership, while "real estate agent" is a job description based on a state license. All Realtors are real estate agents, so using the latter term is never incorrect.

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

One title does not inherently lead to a higher income than the other. An agent's income is based on the number and value of the transactions they close, which is a result of their skills, work ethic, and market conditions. There are highly successful real estate agents who are not Realtors, and there are Realtors who struggle to close deals.

However, some data suggests that Realtors, on average, may have higher incomes. This is likely a correlation, not a causation. Professionals who are serious enough about their career to join NAR may also be more likely to invest in training, technology, and marketing that leads to greater success. The membership itself doesn't guarantee a higher salary, but the mindset of a member often aligns with high-achieving habits.

Can a real estate agent call themselves a realtor?

No, a real estate agent cannot legally or ethically call themselves a Realtor unless they are an active member of the National Association of REALTORS®. The term "Realtor" is a federally registered trademark. Misusing it is a trademark infringement and a violation of real estate ethics. Local Realtor associations actively monitor for misuse of the term and will take action to stop it.

What's higher than a real estate agent?

In the career progression of real estate, a Real Estate Broker is a step above a real estate agent. A broker has completed additional education and has passed a more comprehensive state broker's exam. This advanced license allows them to operate their own brokerage and supervise other real estate agents.

All real estate agents must work under a broker. The broker is legally responsible for the agent's transactions. Some brokers, known as broker-associates, may choose to work under another broker, but they hold the qualifications to run their own firm. A broker can also choose to become a Realtor by joining NAR.

Can you be a real estate agent but not a REALTOR®?

Yes, absolutely. Holding a state real estate license makes you a real estate agent. Joining the National Association of REALTORS® is a voluntary professional choice. Many licensed agents choose not to join NAR for various reasons, such as the cost of dues or a belief that they can operate successfully without the affiliation.

They are still fully licensed and legally able to practice real estate.

Final Thoughts

The debate over real estate agent versus realtor ultimately comes down to a single, crucial factor: a commitment to a formal Code of Ethics. Both are licensed professionals qualified to guide you through a property transaction. However, a Realtor has voluntarily subjected themselves to a higher standard of conduct and accountability enforced by their peers.

This commitment provides an additional layer of assurance for consumers. When you work with a Realtor, you are partnering with someone who has formally pledged to put your interests first, to be honest in all dealings, and to uphold the integrity of the profession.

While the title alone doesn't guarantee a perfect experience, it's a strong indicator of professionalism and a dedication to ethical practice. As you begin your journey to buy or sell a home, look for the ® symbol. It signifies a professional who is not just licensed by the state, but is also a member of the National Association of REALTORS®.