Realtors can make the homebuying and selling process much smoother, thanks to their comprehensive understanding of local communities, real estate laws and public policies.
Understanding the distinctions between real estate agents and realtors may be confusing, so this article will offer clarity on their key differences.
License
As the real estate industry is filled with unfamiliar terminology, it can be easy to become confused between “real estate agent” and “Realtor.” Although both professionals can assist clients in purchasing or selling properties, there are key differences between them that must be noted.
Becoming a real estate agent requires individuals to complete prelicensing training and pass their respective state’s licensing exam. Requirements vary between 60 to 135 hours of prelicensing training depending on which state requirements must be fulfilled in order to sit for and pass this exam. After attaining their licenses, agents are available to work with buyers and sellers of both commercial and residential real estate property.
Real estate agents are typically employed by brokers who run real estate brokerage firms and paid a percentage of any commission earned from transactions, typically divided between listing and buyer’s agents. Realtors must also pay membership fees as well as expenses such as accessing multiple listing services (MLS).
When it comes to selling or buying property, both agents and brokers can provide guidance throughout the process. However, certified Realtors bring an additional level of professionalism as they have access to more resources through the National Association of Realtors (NAR).
Not only are real estate agents active members of NAR, but many choose to become Realtors as it shows a commitment to ethical practices in the industry outlined by the NAR Code of Ethics – something all Realtors must uphold.
Experience is of utmost importance when choosing a broker and real estate agent, as a long history will give them a solid grasp on market conditions and local housing markets, which they can use to negotiate on behalf of their clients during the buying/selling process. A good broker also helps their clients gather legal documents, find financing solutions and connect with parties involved.
Education
Real estate has quickly become one of the most desirable professions today. Yet it remains highly competitive, with numerous professionals competing to help people buy or sell property. Consumers should understand the distinction between real estate agents and realtors so that they select an expert best suited to meet their needs.
Real estate agents and brokers both require licenses in order to assist people with buying and selling property, but only those certified as Realtor(r) can call themselves “Realtor.” This distinction comes from being active members of the National Association of Realtors (NAR), where membership requires adhering to its Code of Ethics; not disparaging competitors while representing clients fairly and honestly at all times are all key requirements for being recognized as an “Realtor(r).”
Realtors must not only meet state licensing requirements, but must also pay membership dues and complete continuing education courses as part of National Association of Realtors membership requirements. NAR also stipulates that members join a local real estate board or association associated with it so as to remain up-to-date on local market trends and issues. This helps build a community among fellow real estate professionals while staying informed.
As with brokers and agents, becoming licensed as an agent often costs less. License applicants typically need to be at least 21 years old, pass background and fingerprinting checks, complete certain pre-licensing course hours and pass an exam (although fees vary according to state).
Acquiring a license in New York, for instance, may cost as much as $1,000 between pre-licensing coursework and exam costs, and license fee charges upon passing exams. Furthermore, membership in the National Association of Realtors costs additional fees such as administrative and support charges; part of your fee goes toward its political action committee which assists its members through federal advocacy, policy development and grassroots outreach initiatives.
Experience
Before applying to become brokers in their state of practice, real estate agents typically must work as licensed salespersons for at least several years as salespersons before taking the necessary steps to earn the broker license. Active real estate agents with five or more years’ experience could potentially qualify. They must complete an additional Pre-Licensing course and pass both national and state exams in order to receive their broker license.
Once a broker has acquired their license, they can hire assistant brokers and real estate agents under them to work. From each deal that goes through under their management or directly from real estate agents closing sales. They then can earn either part or all of the commission earned from each sale transaction.
In certain states, real estate agents can pursue specialty certifications to expand their knowledge of the industry. For instance, agents can earn Certified Buyer Representative or Military Relocation Professional designations to gain more specialized assistance for clients with individual needs – these additional skills help real estate agents provide better client service while simultaneously increasing credibility with clients.
Realtors are expected to adhere to an ethical code that exceeds legal standards. As members of the National Association of Realtors, Realtors must subscribe to its strict code of ethics as well as attend continuing education classes and seminars to stay current with real estate market changes and industry trends.
Considerations should be given when choosing an experienced real estate professional as your guide through your real estate journey. Check the credentials of any potential agents as well as references from past clients who can tell you whether or not they have experience working with properties similar to what you want to buy/sell.
Berkshire Hathaway HomeServices New England Properties provides expert guidance in the complex world of real estate. From finding you your ideal home or buyer for existing property to helping guide every step along the way – Berkshire Hathaway HomeServices New England Properties realtors have your real estate needs covered!
Reputation
As a novice to real estate, it may be challenging to understand all the titles used within the industry. From searching for your ideal home or investment property to hearing terms like “Realtor”, “real estate agent” and “broker”, understanding these professions will help ensure you find one who fits best with your requirements.
Real estate agents must meet state-specific age and education requirements in order to be licensed, but these standards do not compare to those set forth by the National Association of Realtors (NAR). NAR is a trade association for licensed real estate professionals who pledge their adherence to an ethical code of practice which commits them to always placing clients’ needs before their own and acting honestly at all times. Furthermore, agents are expected to pay annual dues as well as attend continuing education classes to maintain certification status.
Although not every licensed real estate professional is a Realtor, those who are can use the title as part of their name or business logo. Realtor is a trademarked title of the National Association of Realtors that signifies their commitment to uphold its Code of Ethics; thus differentiating themselves from agents who may not belong.
NAR’s Code of Ethics details 17 ethical points all members must abide by, including refraining from disparaging competition and filing unsubstantiated ethics complaints against other agents. Furthermore, members are expected to protect clients’ confidential data while also not interfering in another agent’s contractual relationships.
Realtors aren’t required to join NAR, but many choose to do so as a way of accessing its Multiple Listing Service (MLS) and other resources. By joining, Realtors agree to abide by its Code of Ethics and pass an ethics exam in order to be recognized as Realtors.
Some real estate agents operate as both Realtors and real estate agents; others focus on leasing properties. If you’re planning on purchasing your own home, it is wise to hire an agent who knows the local market well so as to provide up-to-date advice and guidance.