Realtor Vs. Real Estate Agent: Differences & Similarities

Although the terms are often used interchangeably and perform similar functions in society, there is a major difference that shouldn’t be overlooked when choosing the right realtor or real estate agent for you. Essentially, all realtors are real estate agents, as a real estate agent is simply someone who has been licensed to buy or sell various properties. However, not all real estate agents are realtors, as becoming a realtor requires further testing and accreditation through the NAR, or National Association of Realtors.

Realty Reality

Both the realtor and the real estate agent perform critical and fundamental roles in society. Facilitating the transfer of property and housing on a fair and equitable basis is a job that must be done, and to become a real estate agent takes hard work and dedication to the job. Becoming a real estate agent usually requires several months of classes and passing a licensing exam.

If you wish to become a realtor, you’d have to start here. Without taking the required courses and exams for your location, the NAR would reject any applications. However, with the right classes and some dedication, this path is achievable for most people.  

NAR Requirements

What do the NAR requirements look like? This is the next question that would be faced by a potential realtor. To achieve their licensing for “non-principals”, meaning the average person who is not a board member, owner, or partner of a real estate firm, you must:

• Hold a valid real estate license in your state or a contiguous state to where the NAR group is located
• Be employed by or affiliated with a NAR licensed realtor
• Have no record of civil judgments within the last seven years involving real estate, civil rights laws, or other unprofessional conduct
• Have any criminal convictions from the last seven years “reasonably relating” to real estate
• Submit a written application
• Provide any applicable information on ethics or conduct violations
• Agree to follow the NAR Code of Ethics, as well as any other applicable laws
• Complete the orientation course
• Submit an application that is “acknowledged” by a NAR principal member

When it comes to this list of requirements, the Code of Ethics is one point that is emphasized strongly. This edict ensures that all are treated fairly and equitably and that any realtor transactions are conducted in the most professional manner possible. One of the key points they follow is that they must always disclose any information they have about a property, even if that makes the property less desirable and could impact them financially.

Benefits of the Real Estate Business

Some of the major reasons people are attracted to being a real estate agent are the flexibility of the schedule and the ability to set your own earnings. A real estate job can fit into a lot of variable schedules; or, if you want to take it all the way you can work overtime and try to get the big listings to earn major income.

On the other hand, maybe even this isn’t enough for you, and you’re ready to take the next step and become a licensed realtor. Although there are numerous requirements and fees to join the NAR, they also provide major benefits to its members. Some of these are:

• Stronger networking abilities

When you join the NAR, you gain the ability to access a massive network of professionals in the same field as you. This gives you incredible opportunities to gain contracts, get jobs, and make sales, which will lead to a higher overall income for you. Networking is a fundamental aspect of success in the modern world, as having a network of like-minded people to support and help you navigate the business world is critical.

• Prestige and advertising

For those in the business, the official title of “REALTOR®” has a golden ring to it. This title means that you are on the top of your game, and capable of passing even more hurdles than most people. Achieving this title will help you advertise more effectively and gain clients more easily, which will also lead to higher incomes for you.

• Discounts and Perks

Members of the NAR get many different perks, from things like cheaper home and auto insurance to access to a special federal credit union. Other companies like FedEx and Office Depot offer discounts or free services to realtors, and many other companies offer exclusive deals for members of the NAR.

Final Thoughts

Whether you’re looking to buy or rent a property or you are considering a career in real estate, the opportunities afforded to these careers are endless. You can set your own schedule, determine your own income through skill-based processes, and even get rich off of flipping properties. For those who can cut it, joining the NAR and becoming a realtor is both a great career and a service to society.