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

Written By Orange Impression

If you've heard commercials recommending that people use REALTORS over 'real estate agents,' you might be wondering what the difference is and why it matters. As a former newcomer to the real estate industry, I can shed some light on this important distinction.

The Difference Between Real Estate Agents and REALTORS

  • All state-licensed real estate professionals are considered real estate agents

  • To be a REALTOR (always written in all caps), an agent must also join the NATIONAL ASSOCIATION OF REALTORS (NAR)

  • While all REALTORS are real estate agents, not all real estate agents are REALTORS

The Origins of the REALTOR Distinction

  • The term 'REALTOR' was coined in 1913, before any real estate laws existed, by a group of ethical real estate professionals

  • At the time, the real estate industry was rife with unscrupulous practices

  • These honest professionals formed the NAR as a members-only association to differentiate themselves from their less principled counterparts

The REALTOR Code of Ethics

  • Central to the NAR is the 'Code of Ethics,' a set of standards to which all REALTORS must adhere

  • This code predates real estate law and served as the basis for many of the industry's initial regulations

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

  • REALTORS can be removed from the NAR for violating the Code

Why Choosing a REALTOR Matters

  • When you work with a REALTOR, you're working with someone who has voluntarily subjected themselves to a higher set of ethics and penalties

  • Courts often cite the REALTOR Code of Ethics when making decisions in cases involving REALTORS

  • For one of the largest investments in your life, it makes sense to choose a professional who is held to the highest standards

The Bottom Line When you're buying or selling a home, opt for a real estate agent who is also a REALTOR. While all real estate agents must follow state laws, REALTORS have taken the extra step of pledging to uphold the NAR's rigorous Code of Ethics. This voluntary commitment to a higher standard of practice provides an extra layer of protection and peace of mind for you as a consumer. So when you're ready to make your next move, look for the REALTOR distinction - it's a mark of professionalism and integrity that truly makes a difference.

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Orange Impression https://www.orangeimpression.com
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