Difference Between A Realtor And A Real Estate Agent
Realtors and real estate agents are two jobs likely to be confused. If you think about it, you surely used both terms interchangeably, and probably without even noticing. But apart from both having something to do with real estate, are these two professions similar? What is it that makes them different?
There are a lot of similarities between realtors and real estate agents, however, there is a reason why they aren’t named the same way.
What Is The Job Of A Real Estate Agent?
Real estate agents job is to assist sellers and buyers in real estate transactions. They estimate and determine prices of properties and handle negotiations with buyers in their clients name. Since their income is mostly based on commissions, real estate agents will always try to get their client the most money possible.
The skills a good real estate agent needs are communication, and people skills. The most successful real estate agents are able to maintain great relationships with their clients and members of their team.
In order to become a real estate agent, one must pass a state licensing exam first. Each state in the U.S. has it’s own license, so you have to pass the exam for the each state you’re planning to work in as a real estate agent.
Here’s a short list of responsibilities real estate agents deal with:
- Promoting properties for sellers
- Taking buyers on tours of potential homes
- Look for new clients
- Oversee documentation of contracts and legal agreements
What Is The Job Of A Realtor?
Realtors can be real estate agents, broker-associates or managing brokers. Their job is to assist their clients in the selling process of their property. Just like Real estate agents, realtors work on commissions and help their clients determine the prices of their homes, as well as, lead the negotiations on behalf of them.
So what is it that makes realtors different from real estate agents?
The difference stands in one thing – Realtors, unlike real estate agents, are members of the National Association of Realtors that are subscribed to the Realtor Code Of Ethics.
The Code of Ethics all Realtors have to be obliged to consists of 17 articles that have the scope to regulate the real estate industry and make the competition between realtors more fair. Although no one can guarantee that all Realtors are better than real estate agents, the NAR is trying to instill an honest approach in realtors that would act in interest of their buyers and clients, and be equally fair to both.
Realtors must pledge to put interests of their clients above their own. However, this Code of Ethics is also protecting customer’s rights and refraining realtors from using unethical methods of selling properties and homes. For instance, Realtors should refrain from concealing weaknesses in a real estate, as well as avoid exaggerating the good things about the property.
They shouldn’t lie in their advertisements in order to get clients, and should be tolerant, competent and fair. All summed up, realtors should make sure both his client and the buyer are equally treated during the negotiation process.
Difference Between Realtors and Real Estate Agents
The main difference between a Realtor and a Real Estate Agents, is only in the realtor’s membership to the National Association of Realtors. Both of them have to get a state license in order to sell properties, however Realtors have to pass another exam in order to become members of the NAR. In theory, realtors are obliged by their membership to NAR to work by their Code of Ethics, while real estate agent aren’t.
However, this doesn’t mean that a real estate agent will be less honest than a realtor. Often real estate agents that are new in the business don’t become realtors because they can’t sustain the cost of the yearly membership to the NAR.
Another difference between them is that according to some researches, realtors earn slightly more than Real estate agents.
According to Payscale and U.S. Bureau of Labor Statistics, a realtor’s median salary is $53,529, while a real estate agent’s salary comes to $46,285.