Realtor vs Real Estate Agent: Understanding the Key Differences
One of the most common questions in real estate is: "What's the difference between a Realtor and a real estate agent?" While these terms are often used interchangeably, they have distinct meanings that every aspiring real estate professional should understand.
Quick Answer
- Real Estate Agent: Anyone licensed to help buy/sell real estate
- Realtor®: A real estate agent who is a member of the National Association of Realtors (NAR)
What is a Real Estate Agent?
A real estate agent is a professional who has:
- Completed state-required pre-license education
- Passed the state real estate licensing exam
- Obtained a state-issued real estate license
- Works under a licensed broker
Types of Real Estate Agents
| Type | Description | Also Called |
| ------ | ------------- | ------------- |
| Salesperson | Entry-level license | Sales agent, associate |
| Broker | Advanced license | Designated broker, managing broker |
| Associate Broker | Broker working under another broker | Broker associate |
What Real Estate Agents Do
- Help clients buy, sell, or rent properties
- Show properties and conduct open houses
- Prepare and present offers
- Negotiate on behalf of clients
- Guide clients through closing
What is a Realtor®?
A Realtor® is a real estate agent (or broker) who is an active member of the National Association of Realtors (NAR). The term "Realtor" is a registered trademark of NAR.
NAR Membership Requirements
To become a Realtor, you must:
- Hold an active real estate license
- Join a local Realtor association
- Join your state Realtor association
- Join the National Association of Realtors
- Agree to follow the Realtor Code of Ethics
- Pay annual membership dues
The Realtor Code of Ethics
The Realtor Code of Ethics contains 17 Articles covering:
- Duties to clients and customers
- Duties to the public
- Duties to other Realtors
- Put clients' interests above your own
- Be honest in all communications
- Cooperate with other brokers
- Avoid discrimination
- Protect confidential information
Key Differences: Realtor vs Real Estate Agent
| Aspect | Real Estate Agent | Realtor® |
| -------- | ------------------- | ---------- |
| License Required | Yes | Yes |
| NAR Membership | No | Yes |
| Code of Ethics | State requirements only | NAR Code + State |
| MLS Access | Through broker | Through broker |
| Continuing Education | State requirements | State + NAR requirements |
| Annual Dues | State license fees | State fees + NAR dues (~$500-700) |
| Title Trademarked | No | Yes |
Real Estate Broker vs Agent: Another Important Distinction
While we're clarifying terms, let's also address the difference between a broker and an agent:
Real Estate Agent (Salesperson)
- Entry-level license
- Must work under a broker
- Cannot operate independently
- Lower education requirements
Real Estate Broker
- Advanced license (requires more education and experience)
- Can work independently
- Can supervise agents
- Can own a brokerage
- Higher liability and responsibility
Comparison Table
| Requirement | Agent | Broker |
| ------------- | ------- | -------- |
| Pre-license Hours | 60-180 hours | 90-300 additional hours |
| Experience | None | Usually 2-3 years as agent |
| Exam | Salesperson exam | Broker exam (more difficult) |
| Work Structure | Under a broker | Independent or supervising |
| Commission Split | Splits with broker | Keeps full commission or takes splits from agents |
Should You Become a Realtor?
Pros of NAR Membership
- MLS Access: Some MLSs require Realtor membership
- Professional Credibility: Recognized brand and ethics
- Networking: Connect with 1.5+ million members
- Education: Access to training and certifications
- Legal Resources: Contract forms and legal updates
- Marketing: Use the Realtor® trademark
Cons of NAR Membership
- Cost: Annual dues ($500-700 typically)
- Time: Additional education requirements
- Not Required: You can be successful without it
- Ethics Complaints: Subject to NAR discipline process
Who Should Join?
Join NAR if:- Your MLS requires membership
- You want to use the Realtor® brand
- You value the networking and resources
- Your broker encourages or requires it
- Your MLS doesn't require membership
- You're focused on commercial real estate
- Cost is a significant concern
- You're part-time or new
Common Exam Questions
Question 1
What distinguishes a Realtor from a real estate agent?A. A Realtor has a broker's license
B. A Realtor is a member of NAR ✓
C. A Realtor can only sell residential properties
D. A Realtor works independently without a broker
Explanation: The only difference is NAR membership. Both must be licensed.Question 2
The Realtor Code of Ethics contains how many articles?A. 10
B. 12
C. 17 ✓
D. 25
Explanation: The Code of Ethics has 17 Articles covering duties to clients, the public, and other Realtors.Question 3
Which of the following is TRUE about real estate brokers?A. Brokers cannot supervise other agents
B. Brokers must work under another broker
C. Brokers can operate independently ✓
D. Brokers do not need a license
Explanation: Brokers have an advanced license that allows them to work independently and supervise agents.Question 4
A real estate agent who is NOT a Realtor can still:A. Use the Realtor® trademark
B. Help clients buy and sell real estate ✓
C. Be automatically exempt from state licensing laws
D. Join the local MLS without broker affiliation
Explanation: Non-Realtor agents can still practice real estate; they just cannot use the Realtor trademark.Related Terms to Know
- REALTOR®: Trademarked term for NAR members
- NAR: National Association of Realtors
- MLS: Multiple Listing Service
- Broker of Record: Licensed broker responsible for a brokerage
- Principal Broker: Same as broker of record (term varies by state)
- Associate Broker: A broker who works under another broker
- Salesperson: Entry-level licensee (same as sales agent)
Income Comparison
Many wonder if Realtors earn more than non-Realtor agents. Here's what the data shows:
| Metric | Realtor (NAR Member) | Non-Realtor Agent |
| -------- | --------------------- | ------------------- |
| Median Income | ~$55,000 | ~$45,000 |
| Experience Level | Often higher | More beginners |
| Full-Time Rate | Higher | More part-time |
How to Become a Realtor
Step 1: Get Licensed
Complete your state's licensing requirements:
- Pre-license education
- Pass the state exam
- Find a sponsoring broker
Step 2: Join Your Local Association
- Find your local Realtor association
- Submit application and fees
- Complete orientation
Step 3: Complete Ethics Training
- Take NAR's Code of Ethics training
- Must be completed within first year
- Renewed every 3 years
Step 4: Stay Active
- Pay annual dues
- Complete continuing education
- Participate in local activities
Summary
Understanding the difference between a Realtor and a real estate agent is important for your career and the exam:
| Key Point | Remember |
| ----------- | ---------- |
| Real Estate Agent | Licensed to practice real estate |
| Realtor® | Agent + NAR membership |
| Real Estate Broker | Advanced license, can work independently |
| Code of Ethics | 17 Articles, required for Realtors |
For your exam, focus on:
- The distinction is NAR membership
- The Code of Ethics has 17 Articles
- All Realtors are agents, not all agents are Realtors
- Brokers have more authority than salesperson agents
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