A Realtor is always a broker or agent because being licensed is a requirement for being
a Realtor, but a broker may not always be a Realtor.
That’s because Realtor is a trademarked, made up title used by real estate brokers
who are members of the National Association of Realtors, otherwise known as NAR, the primary
trade association for real estate brokers in the United States.
Essentially, being a Realtor means the real estate agent went one step further after getting
licensed and joined the National Association of Realtors which is a private trade organization
for real estate agents.
Realtor vs Real Estate Agent
A real estate agent can be a Realtor if he or she is a member of the National Association
of Realtors (NAR), America’s largest trade group for real estate agents.
However, a real estate agent who is not a NAR member cannot call themselves a Realtor.
A Realtor on the other hand, is always a real estate agent.
That’s because being licensed is a prerequisite for membership in the NAR.
Are All Real Estate Agents Realtors?
No.
Even though the National Association of Realtors boasts over 2 million members across the United
States, not all real estate agents choose to join and become Realtors.
There are many real estate brokers who choose to operate independently of the NAR.
With that said, most real estate agents are Realtors because most MLS systems across the
country are operated by local Realtor associations, meaning that you have to be a NAR member in
order to participate.
Since the MLS is critical for a real estate agent to be able to do business, most agents
do in fact join the NAR and become Realtors.
What Is a Real Estate Agent?
A real estate agent is someone who is licensed to practice real estate in a particular state.
The term real estate agent is rather generic, and does not provide specifics on what type
of license the person has.
For example, a licensed real estate salesperson, a licensed associate real estate broker and
a licensed real estate broker are all real estate agents.
A real estate agent is called such because he or she acts as an agent on behalf of the
principal (i.e. the customer) to buy, sell or rent real estate.
As a result, a real estate agent has an agency relationship and serves the interests of the
principal.
Difference Between Real Estate Agent and Real Estate Broker
A real estate agent is a general term for someone who acts on behalf of and in the best
interests of a principal, otherwise known as a customer.
The term real estate agent does not reveal any specifics on the type of licensure that
the agent has.
In contrast, a real estate broker generally refers to someone who is a licensed real estate
broker, which is the highest form of licensure.
A licensed real estate broker can work individually as a sole proprietor, or start a real estate
brokerage company.
A licensed real estate broker is able to bring on licensed real estate salespersons and licensed
associate real estate brokers to work for him or her, generally as independent contractors.
In essence, anyone who is not a licensed real estate broker must associate their license
with a licensed real estate broker in order to use their license.
Difference Between Real Estate Salesperson and Broker
A real estate salesperson is the easiest type of real estate license to get, and does not
require any prior experience.
In New York, a real estate salesperson must simply complete a 75 hour pre-licensing course,
pass a real estate school exam, and then pass the state exam, all of which are relatively
easy.
In contrast, a real estate broker’s license is much harder to get.
You typically need to work as a licensed real estate salesperson for at least 2 years and
have completed a minimum number of deals to even qualify.
Furthermore, you’ll need to take an additional 45 hour course and take an additional exam
for real estate brokers.
As you can imagine, it’s much more difficult to become a licensed real estate broker vs
just a licensed real estate salesperson.
This is why the vast majority of real estate licensees that you’ll meet will be licensed
real estate salespersons vs brokers.
Realtor vs Broker vs Agent – Which is Better?
Remember that a Realtor is simply a custom title used by members of the National Association
of Realtors.
Other than membership, there is no real difference between a Realtor and a broker or agent who
is not a Realtor.
Sure, Realtors technically have to abide by a code of conduct and ethics guidelines provided
by NAR.
However, just having these additional guidelines and rules does not mean they get enforced
on a regular basis.
The main difference will be whether the local broker database in your area is governed by
a Realtor operated MLS system or not.
Assuming the local Realtor association runs the MLS in your area, then it does in fact
make a difference whether your agent is a Realtor or not.
Only a Realtor will be able to take advantage of the MLS, a non-Realtor will generally not
be able to.
This is a huge disadvantage to not being a Realtor as you won’t be able to effectively
cooperate with other agents.
This distinction of course goes away if the local broker database has nothing to do with
NAR, such as the REBNY RLS in NYC.