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Realtor vs Real Estate Agent: What’s the Difference?

There is a lot to learn in real estate, but your title shouldn’t be something that trips you up.

Aug 19, 2024
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There is a lot to learn in real estate, but your title shouldn’t be something that trips you up. If you’ve ever stumbled to explain—or even understand—the difference between being a Realtor and being a real estate agent, you’re in the right place. Both help people buy, sell, or rent properties, so what makes them unique? Let’s walk through the differences between the two.  

Realtor & Real Estate Agent Defined

When asking, “What is a realtor vs real estate agent, and what does it stand for?” it’s best to look at the definition. 

Realtor: According to NAR, the term REALTOR® has one, and only one, meaning: REALTOR® is a federally registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.

Real estate agent: The Cambridge dictionary defines a real estate agent as someone who arranges the selling, renting, or management of homes, land, and buildings for the owners. 

Differences Between a Realtor and a Real Estate Agent

The public widely adopted the term “Realtor” as a universal title for real estate agents, but that’s not how it was initially intended. Realtors are National Association of Realtors (NAR) members, and the title was once reserved for members only. That aside, real estate agents and Realtors mostly share the same job responsibilities, but there are distinctions between them. Here is a further breakdown of the difference between a Realtor and a real estate agent:

Real Estate Agent
Realtor
Licensing
  • A licensed real estate professional who works for a sponsoring broker to help individuals buy, sell, and rent properties.
  • Same as an agent, but is a member of NAR.
Education
  • Holds a real estate license in the state of residence or multiple states by reciprocity
  • Works under a sponsoring brokerage
  • Required to complete continuing education
  • Same as an agent, but requires NAR code of ethics training; can also get additional education and professional development from NAR
Duties and Responsibilities
  • Handle all documents in a real estate transaction
  • Represent client(s) (buyers, sellers, property owners, and lessees) in purchase and lease negotiations
  • Bound to Fair Housing laws
  • Same as an agent, but in addition to Fair Housing, is also bound to the NAR code of ethics
Income and Expenses
  • Active salespeople are paid as a 1099 independent contractor
  • Paid from commissions
  • Pay taxes and Social Security independently
  • Responsible for health insurance
  • Pays annual membership dues
  • Has the same expenses as a real estate agent, with the addition of NAR membership dues
  • NAR offers health insurance options at a discounted rate for members.
Marketing and Advertising
  • Include brokerage name and contact information on all marketing materials
  • Same as agent, but can use the trademarked Realtor designation
Additional Differentiators
  • May be Realtors or brokers
  • Membership is required in some circumstances. For instance, you must join if your brokerage is a NAR member.

Important Note: The term ‘Realtor’ is a registered trademark and should always be spelled with a capital ‘R’ when referring to a real estate agent who is a NAR member. However, the general public often uses ‘realtor’ to refer to all real estate agents, not all of whom may be NAR members. In this case, the term should be spelled with a lowercase ‘r.’

Shared Duties & Responsibilities

Now that we’ve broken down the differences between a real estate agent and a realtor, let’s look at some similarities. When it comes down to it, the main goal of both is to represent our buyer, seller, and renter clients to the best of our abilities. But there are other shared duties and responsibilities that include the following:

Pros & Cons of Real Estate Agents vs Realtors

Of course, we can’t discuss the difference between a realtor and a real estate agent without breaking down the advantages and disadvantages of each. Before joining NAR to become a Realtor or choosing to remain a real estate agent independent of additional affiliations, take a look through the pros and cons of these two real estate roles. 

Real Estate Agent

A real estate agent is the most common among real estate professionals, as obtaining this license is the first step to working in the real estate industry. It’s a slightly more cost-effective option since agents don’t have to worry about additional membership dues to NAR.

Real Estate Agent
Pros
Cons
  • Has uncapped income potential
  • Must operate under a broker’s license
  • Has fewer continuing education requirements
  • Must join a local board to access MLS
  • Has no annual NAR membership dues
  • Typically earns less income than a Realtor
  • Has low operating expenses
  • Cannot use the term Realtor in marketing
  • Realtors

    Any real estate agent can join NAR by paying their membership dues. But depending on where they work and which brokerage they’re affiliated with, some agents might even be required to join if their broker is a member. Being a Realtor under NAR means they’re held to higher ethical standards, so there’s a perception that they’re more trustworthy.

    Realtors
    Similar advantages and disadvantages as an agent, but also includes the following:
    Pros
    Cons
  • Has access to NAR benefits, discounts, events, education and training
  • Has costly annual dues
  • The Realtor designation is widely recognized
  • Managing broker must be a Realtor member if agents want the designation
  • May enhance marketing when used in campaigns
  • Must be an active agent or broker for membership
  • Has access to cutting-edge real estate research and timely news
  • May not be able to join if you or your broker have a bankruptcy within three years of application, or you may be required to pay cash upfront for membership and MLS
  • What additional benefits does NAR give to its members?

    NAR members gather in the expo hall of the annual real estate convention.
    NAR Members at Annual Convention (Source: CNN)

    When further diving into the difference between realtor and real estate agent, let’s take a closer look at NAR. As the largest trade association in the U.S., NAR provides its members with support and resources, including professional development courses, local discounts, and opportunities to contribute to charity and volunteer events. Some additional benefits of being a Realtor include the following:

    • Public advertising and campaigns supporting Realtors
    • Support for federal, state, and local policy initiatives
    • Resources like Realtor Magazine, designations, and certifications
    • International network
    • Discounts for equipment, insurance, services, and tools
    • Further educational and networking opportunities at the state and national conventions
    • Opportunities to contribute to local and national charities

    Frequently Asked Questions (FAQs)

    Realtors are brokers and agents who are National Association of Realtors (NAR) members and pay NAR fees. Not all real estate agents are Realtors, so as an agent, you can only use the term Realtor if you are a NAR member. You want to be transparent with clients, so if you’re not a NAR member, and they refer to you as a Realtor, let them know the difference. It’s important to note that the public may refer to agents as realtors in a general sense, but agents should not use the term in marketing unless they are NAR members.

    Exploring what’s the difference between a real estate agent and a realtor can naturally lead to wondering what the differences between a real estate agent and a broker are. It can vary by license type and state; however, we’ve broken it all down for you in our article, Real Estate Broker vs. Agent: A Head-to-Head Analysis.

    Bringing It All Together

    So whether you are a real estate agent, a NAR Realtor, or labeled a realtor by a client, it’s safe to say that there are more similarities than differences. As we’ve learned today, the term Realtor comes from being a part of the NAR network and gaining access to those advantages. However, guiding clients through the journey of buying, selling, and renting homes is paramount. No matter your title, working in real estate offers a chance to build rewarding relationships and enjoy the flexibility to create your success.

    thumbnail Brittany Wrenn

    Over 12 years of experience in various real estate roles have allowed Brittany to see the industry from many angles, sharpening her marketing, business development, sales, and leadership skills. She joined The Close as a Real Estate Writer to continue educating and supporting agents' career development. As a real estate agent who suffered career burnout and recognized how common it is in the industry, Brittany is passionate about reducing the number of real estate professionals who experience burnout. She provides resources and strives to elevate the conversation about wellness in the real estate industry. Seeking to support agents’ well-being as they build and maintain their careers, she also developed a burnout prevention plan that helps agents find a more sustainable way to build their businesses.

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