How many times have you heard the terms real estate agent, broker, and REALTOR® used to describe the same person?
Probably more than you can count if you’re active in the real estate industry!
While some responsibilities within these titles can overlap, each of these titles actually reflects an entirely different job and status in the industry. Not sure how agents, brokers, and REALTORS® differ? Keep reading to learn more.
Real estate agents are professionals with a license to help with the buying, selling, and renting of real estate.
Agents operate off of commissions they receive for connecting homebuyers and sellers. The commission is taken from the sale of the property the agent was involved in.
While the process of becoming a real estate agent will vary depending on the region, generally, agents in the United States must:
Once an agent has taken the necessary steps, their daily responsibilities will vary depending on the type of client they’re working with.
When working as a buyer’s agent, a real estate agent will:
When working as a listing agent, the real estate agent will:
While the terms “real estate agent” and “REALTOR®" are often used interchangeably, these titles are actually different.
While real estate agents perform the duties listed above, REALTORS® are members of the NAR (National Association of Realtors). REALTORS® can be real estate agents. However, they can also be brokers, property managers, appraisers, or other types of professionals in the real estate industry.
To become a REALTOR®, one must:
If these criteria are met, a real estate professional can join a local NAR association. Joining this association will require a one-time application fee and an annual fee to maintain membership.
Lastly, REALTORS® must follow a strict code of conduct laid out by the NAR to maintain the status of “REALTOR®."
While a real estate broker starts as an agent, they must continue their real estate education past initial licensure to become a broker.
As we mentioned, a broker can also pay membership dues and join the NAR if they fit the criteria to add the “REALTOR®" title to their portfolio.
To become a broker, a real estate agent must have relevant experience practicing as an agent. With the necessary experience, they can take a state test to get their broker’s license.
Many agents choose to become brokers because it allows them to work independently. While agents must operate under a brokerage, a broker can open their own brokerage and hire additional agents to work with them.
There are three different types of brokers:
If a broker chooses to, they can continue performing many of the tasks agents do, such as helping clients find a home, going to showings, working with a seller to list, etc. Some brokers choose to step back and allow their team of agents to handle these tasks while they manage and oversee all operations within the brokerage.
Each title represents a different tier within the real estate industry.
Real estate agents are the starting point. If agents want to work independently, hire other agents, and continue their education, they can receive their broker’s license.
“REALTOR®" is a title based on a real estate professional’s relationship to the NAR and can be given to either an agent or a broker.
Real estate agents, brokers, and REALTORS® all serve as valuable members of the real estate industry, as each job and title comes with its own expertise and responsibilities.
No matter what type of real estate professional you are, PropStream has free Academy courses to help you excel in your niche!
Some of our most popular courses include:
Additionally, we have a weekly webinar called Lunch and Listings for agents, brokers, and REALTORS® to get actionable advice about finding new leads. Webinars are live every Wednesday at noon PT.
Sign up for free and take an Academy course or attend a webinar today!