The real estate industry can be confusing and overwhelming for someone new to the process of buying or selling a home.
There are a lot of industry-specific terms that affect the process– for instance, what’s a mortgage rate? When should I buy a home? Is it a buyer’s market or a seller’s market?
One of the most universally confusing distinctions is one that many people probably don’t even realize exists: the difference between a realtor and a real estate agent.
Even within the industry, people tend to use the two terms interchangeably. But there are several important differences between them, and it’ll help you on your search to learn to tell them apart!
What’s a real estate agent?
You probably already have a general understanding of what exactly a real estate agent is and does.
A real estate agent is a licensed professional who helps people sell, buy, or rent housing, plots of land, and real estate in general. To become a real estate agent and receive your license, you have to undergo a certain amount of training and pass written exams.
So what does that mean for you?
It means that your real estate agent has the education, training, and experience to help you with your search to sell, buy, or rent a home or piece of property.
They know what they’re doing, and they have the knowledge and industry connections to get you in touch with exactly what you’re looking for.
Another helpful distinction: if real estate agents are working with sellers, they’re known as listing agents; if they’re working with buyers, they’re referred to as buyer’s agents.
Real estate agents’ licenses vary depending on the state they’re in, since there isn’t a federal real estate license.
Typically, though, a real estate agent has to be a legal resident of the United States of a certain age. They have to pass the required pre-licensing and licensing examinations, and they also have to undergo a background check.
The background check process is necessary because a real estate agent often gets up close and personal with the people they work with– for instance, entering sellers’ homes when they’re not around to show the home to prospective buyers. A certain level of trust between clients and agents is necessary!
What’s a realtor?
Although the two terms sound very similar, a realtor is not the same thing as a real estate agent!
In fact, you can be a realtor and not be a real estate agent, and vice versa. A real estate agent is not necessarily a realtor.
“Realtor” is a term that specifically applies to people who are current and active members of the National Association of Realtors, otherwise known as NAR. In order to join NAR, you first have to join a local real estate association.
Joining a local real estate association gets you involved with the real estate professionals in your area, and it helps to provide you with connections within the industry.
It generally helps to have as many connections as possible, and a local real estate association can certainly help you build a great network.
In addition to joining your local association, you’ll also be held to what the NAR refers to as a “higher standard”.
There’s a strict code of ethics, dating back to 1913, that the NAR adheres to. This code includes standards of practice that require realtors to avoid misleading tenants or buyers, to act as quickly as possible during transactions, and to preserve clients’ confidential information.
Should I work with a real estate agent or a realtor?
Both real estate agents and realtors are licensed professionals who are highly educated and experienced within the real estate industry.
Realtors have undergone further training and have access to a larger local and national network, which may serve to benefit you as a client.
Regardless of whether you choose to work with a realtor or real estate agent, working with a real estate professional from Edge Realty will help you buy or sell with the confidence you can only get from an industry expert.
If you’re ready to get started today, send us a message! We’d be happy to answer any questions you might have about the process.