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July 10, 2018

What’s the difference between a real estate agent and a Realtor®?

If you’ve ever bought or sold a home, you’ve probably interacted with a real estate agent.

People tend to confuse all the qualifications that describe the person who helped you through your real estate transaction. Real estate agent, Realtor®, broker – what’s the difference? While some may use these terms interchangeably, there are a few key differences between Realtors® and real estate agents. Both are licensed to sell real estate, but the main difference is simple: a Realtor® is a member of the National Association of Realtors® (NAR) and an agent may not be.

Why does that matter? Realtors® are bound to abide by the NAR Code of Ethics and are held to a higher set of standards than the average agent. This Code of Ethics is a guiding principle on how to conduct business in a fair and ethical manner. They outline the best practices for real estate professionals, including cooperation between fellow members, and are meant to protect consumers. First and foremost, Realtors® must put the interests of their clients above their own and treat all parties with honesty and integrity. Other standards of practice are outlined in these rules as well, such as regulations about earnest money deposits, disclosure of interest, and misrepresentation.

And when Realtors® don’t follow these rules, they’re subject to fines and other penalties by local and state boards. Real estate agents are not bound by these same values. Partner of ARC Realty and Birmingham Association of Realtors® President-Elect Mechelle Wilder reflects that “in today’s market with its low inventory, buyers have to be especially careful that they don’t purchase a home out of desperation which may later become a problem to resell. This is why they need the expertise and knowledge of an experienced Realtor® to help them through the process.”

So what about agents and brokers? Real estate brokers can also be Realtors®, but they have completed an additional course of licensure to extend their knowledge of the industry. These brokers may be associate brokers, working under another broker, or qualifying brokers, with agents working for them. At ARC Realty, all of our active agents and brokers are members of the local, state and national board of Realtors®.

 

Looking for a great Realtor®? ARC Realty is the largest locally owned brokerage in Alabama, with offices in Birmingham, Cahaba Heights, Hoover, Mountain Brook, Mt. Laurel, Wetumpka, Montgomery and Lake Martin. Founded by four Birmingham locals with over 100 years of experience, we’re here to assist you with all of your real estate needs. If you would like more information about Birmingham or Montgomery, or to speak to an ARC agent contact us at (205) 969-8910.

Want to learn more about the National Association of Realtors® Code of Ethics? You may read them here.

Category Real Estate

Tags: Montgomery

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