REALTOR® vs. Agent: What’s Beyond The Title?

The labels “Real estate agent” and “REALTOR®” create frequent confusion. While often used interchangeably, the designations are not (always) synonymous. A REALTOR® is a real estate agent, but a real estate agent isn’t always a REALTOR®, and the difference begins with a membership.

Real Estate Agent: The Starting Point

A real estate agent is a professional who has passed the required licensing exam in their state. This license permits agents to assist clients in buying and selling real estate. 

As an agent, your role is to facilitate real estate transactions, provide advice, conduct showings, negotiate deals, and guide clients through the complexities of real estate.

But you can not call yourself a REALTOR®.

The most common use case for a non-REALTOR® real estate agent is Commercial Real Estate. Since Commercial’s operational networks and platforms don’t align with the benefits the National Association of REALTORS® provides, most forgo the expenses and upkeep of a membership.

REALTOR®: Membership and Ethical Standards

The term REALTOR® refers explicitly to a real estate agent who is a National Association of Realtors® (NAR) member. This membership requires adherence to the NAR’s strict Code of Ethics, which outlines duties to clients, the public, and other REALTORS®. 

These ethical guidelines go beyond the legal obligations set by state law and focus on honesty, fairness, and integrity.

Should You Become A REALTOR®?

If you’re joining the world of residential real estate, you should consider becoming a REALTOR®. With over one million agents and 100,000 brokerages, NAR provides the tools and network residential real estate relies upon.

The REALTOR® title also comes with the support and reputation of an association responsible for nearly every home sold in America for over a century.

Professional Credibility and Client Trust

Since 1908, members of the National Association of REALTORS® have been helping Americans buy and sell homes, becoming a trusted household name. 

The REALTOR® title helps enhance professional credibility. The NAR’s Code of Ethics reassures clients of your commitment to trustworthy and ethical dealings, adding a significant advantage in building client relationships and expanding your network.

Access to Resources

REALTORS® can access various resources through a NAR membership, including exclusive real estate listings and market data through the Multiple Listing Service® (MLS), educational opportunities, forms and contracts, and legal support. 

These resources can be invaluable in staying informed and competitive in the market. 

Additional member benefits include healthcare and dental plans plus discounts for business necessities.

REALTOR® Membership Fees are Expensive

All the benefits of being a REALTOR® come with a cost: National, state, and local membership dues plus MLS fees. Dues range depending on the local association and MLS, but you can expect to pay over $1,000 annually.

Here’s an example from a local association.

2024 REALTOR® Dues

• 2024 Local Dues: $240
• 2024 State Dues: $210
• 2024 National Dues: $201

Additional Fees

• Multiple Listing Service: $300/bi-annually
• Lockbox Fee: $200

Making the Right Choice for Your Career

While both roles operate in the real estate market, the choice involves weighing the benefits of NAR membership against your career goals, especially if you are leaning towards residential real estate.

Whether choosing the REALTOR® designation or remaining a real estate agent, your success will largely depend on your commitment to ethical practices, continuous learning, and dedication to serving your client’s best interests. 

Both paths offer rewarding opportunities, and understanding their nuances will help you make an informed decision about your professional journey in real estate.