REALTOR vs. Real Estate Agent: What's the Difference?

If you're looking to buy or sell a home, you might have heard the terms "real estate agent" and "REALTOR" used interchangeably. However, there is a distinct difference between the two that can have a significant impact on your experience as a consumer.

The Birth of the REALTOR Distinction

  • In 1913, before any real estate laws existed, a group of ethical real estate professionals created the term "REALTOR"

  • At the time, the real estate industry was plagued by unethical practices

  • These principled professionals formed a members-only association, the NATIONAL ASSOCIATION OF REALTORS (NAR), to set themselves apart from less scrupulous agents

The REALTOR Code of Ethics

  • The NAR established a "Code of Ethics" that all members must follow

  • This code was later used as the foundation for many real estate laws when the government began regulating the industry

  • Today, the Code of Ethics and Standards of Practice are even more stringent than current real estate law

  • REALTORS who violate the Code can face fines up to $5,000 and be expelled from the NAR

The Importance of the REALTOR Title

  • Only REALTORS are allowed to participate in the Multiple Listing Service (MLS), a crucial tool for buying and selling homes

  • Judges often hold REALTORS to a higher standard than non-member agents, citing the Code of Ethics in their rulings

  • When making one of life's biggest financial decisions, it's wise to work with a professional who has voluntarily committed to a higher ethical standard

The Bottom Line While all real estate agents must be licensed by their state, only those who are members of the NAR can call themselves REALTORS. This distinction is not just a matter of semantics; it reflects a voluntary pledge to uphold a strict Code of Ethics that goes beyond what is legally required. When you work with a REALTOR, you can trust that you're partnering with a professional who is dedicated to integrity, expertise, and client satisfaction. So when you're ready to make your next move, look for the REALTOR logo – it's a symbol of excellence that can make all the difference in your real estate experience.

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What the Heck is a REALTOR (vs. a Real Estate Agent) & Why Should I Care?