20+ Differences Between Real Estate Agent And Real Estate Realtor

The terms Real Estate Agent and Real Estate Broker sound like synonyms and, most of the time, are used interchangeably.

Real Estate is simply a property that is connected to the land. Real Estate Agents and Real Estate Brokers are persons involved in the purchase and sale of Real Estate. But due to the similarities between these two, it is wrong to think that both mean the same.  

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Key Differences –

Real Estate Agent –

  1. A Real Estate Agent is someone who indulges in Real Estate deals to make sure the demands of buyers and sellers are met. Agents work under a Real Estate Broker. 
  2. A Real Estate Agent cannot hire people to work under him. 
  3. A Real Estate Agent is not a member of the National Association of Realtors (NAR) or concerned organization. 
  4. A Real Estate Agent does not have to study forever. 
  5. Real Estate Agents are dependent on their superiors. 
  6. Real Estate Agents do not have to follow the ethics provided by NAR.

Real Estate Realtor –

  1. A Real Estate Realtor is also someone who indulges in Real Estate deals to make sure the demands of buyers and sellers are met. 
  2. A Real Estate Realtor can hire people to work under him. 
  3. A Real Estate Realtor is a member of the National Association of Realtors (NAR) or concerned organization.
  4. To be a NAR member, a realtor must keep studying to keep membership. 
  5. Real Estate Realtors work independently. 
  6. Real Estate Realtors must follow the ethics provided by NAR. 

Comparison Between Real Estate Agent And Real Estate Realtor

ParameterReal Estate AgentReal Estate Realtor
MeaningReal Estate Agents help their clients in selling or buying a property. They represent a buyer or a seller in a Real Estate Deal.Real Estate Realtors are the members of NAR who help buyers and sellers find Estate Deals that suits their interests.
MembershipThese agents are not members of NAR or the concerned organization.These realtors are members of NAR or the concerned organization.
EducationThese agents have to have only a limited education.These realtors have to have regular courses to keep their membership.
QualificationsThese agents are less qualified than Real Estate Realtors.These realtors are more qualified than Real Estate Agents.
Ethical codeThese agents do not have to follow the ethical code set up by NAR or the concerned organization.These realtors have to follow the ethical code set up by NAR or the concerned organization.
Earning SourceThese agents earn through the commissions received on Real Estate deals.These realtors earn by spreading income or margin income
ResponsibilitiesThe Responsibilities of Real Estate Agents mainly include finding clients, helping and representing them in real estate deals, conducting market research, doing the paperwork, etc.The Responsibilities of Real Estate Realtors mainly include training, leading, & supervising clients, finalizing deals, convincing clients to see properties and, helping them with paperwork, etc.

Major Differences Between Real Estate Agent And Real Estate Realtor

To understand the difference between a Real Estate Agent and a Real Estate Broker, it is important to understand what Real Estate is first.

What exactly is Real Estate?

Any property that somehow is connected to the land is known as Real Estate. 

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What Real Estate is –

  • A building
  • A piece of land
  • An apartment in a building
  • A single house, etc.

What Real Estate is not –

  • Furniture
  • Cars
  • Jewelry
  • Television, AC, Fans, etc.

Who exactly is a Real Estate Agent?

Real Estate Agents are those people who work under Real Estate Brokers and deal in Real Estate transactions. These agents are not a part of the National Association of Realtors (NAR).

When the clients want to sell or buy properties, they contact Real Estate Agents, and then these agents guide them to deals that benefit the clients in the best ways.

Real Estate Agents conduct thorough market research, find interested buyers and sellers, interview those buyers and sellers, learn the demands of both sides, do all the paperwork, and try to make the buyer’s and seller’s ends meet.

Real Estate Agents are licensed but less qualified than Real Estate Brokers. Real Estate Agents make money through the commissions they earn on Real Estate Agents.

It should be noted that all the commissions do not go to Real Estate Agents, but most of them go to Real Estate Brokers. Thus, Real Estate Agents earn lesser than Real Estate Brokers.

Who exactly is a Real State Realtor?

A Real Estate Realtor is someone who is a member of the National Association of Realtors (NAR). A Real Estate Realtor can be a Real Estate Agent as well as Real Estate Broker. These Realtors help buyers and sellers to buy and sell that suits their best interests.

Real Estate Realtors train, guide Real Estate Agents & check their performance, finalize deals, verify everything that needs a license, providing all the necessary help that a buyer and seller desire.

Because of their NAR membership, these Realtors must keep studying new annual courses to keep their membership active.

And because of this reason, Real Estate Realtors have higher qualifications and experience than Real Estate Agents and Brokers. Real Estate Realtors work independently and can have Real Estate Agents working for them. 


Contrast Between Real Estate Agent And Real Estate Realtor

Meaning

  • Real Estate Agent – Real Estate Agents are those who represent buyers and sellers in a Real Estate deal. These agents help their clients to buy and sell properties by making sure their respective demands are met. 
  • Real Estate Realtor – Real Estate retailers are also those who help buyers and sellers find Estate Deals that suit their interests, but the difference between an Agent and a Realtor is that the Realtors are members of NAR or the concerned organization, but Agents are not. 

Education

  • Real Estate Agent – Real Estate Agents have to have only a limited piece of education. 
  • Real Estate Realtor – Real Estate Realtors have to have educational courses all the time. 

Qualifications

  • Real Estate Agent – Real Estate Agents are less qualified than Real Estate Realtors. 
  • Real Estate Realtor – Real Estate Realtors are more qualified than Real Estate Agents. 

License

  • Real Estate Agent – Real Estate Agents are licensed executives. 
  • Real Estate Realtor – Real Estate Realtors, just like Agents, are licensed executives. 

Membership

  • Real Estate Agent – Real Estate Agents are usually not members of the National Association of Realtors (NAR) or any other concerned organization. 
  • Real Estate Realtor – Real Estate Realtors are members of the National Association of Realtors (NAR) or any other concerned organization. 

Ethics Of NAR

  • Real Estate Agent – Real Estate Agents do not have to follow the ethics set up by NAR or the concerned organization. 
  • Real Estate Realtor – Real Estate Realtors have to follow the ethics set up by NAR or the concerned organization. 

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The ethical code of NAR for Real Estate Realtors –

  • Article 1 – Article 1 talks about placing the clients’ interests before theirs and doing everything to protect them. 
  • Article 2- A realtor must not hide any fact or misspell anything to his clients. 
  • Article 3 – All realtors must coordinate and cooperate with each other to protect their client’s interests. 
  • Article 4 – Realtors should make sure to tell their clients if they are dealing with someone of the client’s family for the same property. 
  • Article 5 – Realtors should not deal with someone for a property; they have their own interest in it. 
  • Article 6 – Realtors should have a client’s consent before having their payment/commission.  
  • Article 7 – A realtor must reveal all the parties if he is about to receive payment from any of the parties indulged in a deal or transaction. 
  • Article 8 – Realtors should not mix their personal funds with clients’ funds.
  • Article 9 – Realtors must make sure their clients clearly understand the policies, rules, regulations, and paperwork of a Real Estate deal. 
  • Article 10 – Article 10 tells the realtors not to discriminate against their clients on any basis. 
  • Article 11 – Realtors should only provide the services they are authorized to. 
  • Article 12 – Realtors should do honest advertisements and marketing. 
  • Article 13 – Realtors should not break the law. 
  • Article 14 – Realtors must cooperate if they are ever charged with an unfair practice. 
  • Article 15 – Realtors must not speak anything unfair about other realtors and real estate agents.
  • Article 16 – Realtors should not indulge themselves in other realtors’ relationships. 
  • Article 17 – According to Article 17, problems and disputes between realtors should be arbitrated.

Independence

  • Real Estate Agent – Real Estate Agents work under Real Estate Brokers or Realtors and, thus, are dependent on them. 
  • Real Estate Realtor – Real Estate Realtors usually work independently and have subordinates working for them. 

Earning Source

  • Real Estate Agent – Real Estate Agents earn through the commissions gained from Real Estate deals. 
  • Real Estate Realtor – Real Estate Realtors earn by spreading income. In this, realtors buy properties at a lower price and sell them at a higher price. The difference between the buying and selling price becomes their income. 

Responsibilities

  • Real Estate Agent – The Responsibilities of Real Estate Agents mainly include finding clients, helping and representing them in real estate deals, conducting market research, doing the paperwork, etc. 
  • Real Estate Realtor – The Responsibilities of Real Estate Realtors mainly include training & supervising clients, finalizing deals, helping clients with paperwork, etc. 

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Responsibilities of Real Estate Agents and Brokers –

Real Estate Agents –

  1. Producing and bringing leads. 
  2. Doing all the paperwork. 
  3. Conducting regular market research. 
  4. Finding properties that suit the best interest of their clients. 
  5. Representing clients in real estate deals. 
  6. Showing Real Estate to clients. 
  7. Making the ends of buyers and sellers meet. 

Real Estate Realtors –

  1. Training and supervising Real Estate Agents. 
  2. Coordinating Agents’ goals with the firm’s goals. 
  3. Make sure all the paperwork done by agents is correct and legal.
  4. Explaining all the paperwork to the clients. 
  5. Convincing clients to see properties. 
  6. Making both ends meet and finalizing deals. 

Conclusion

Real Estate Agents and Realtors are the most important part of the Real Estate and Real Estate sector. It is nearly impossible to indulge in a Real Estate transaction without Real Estate Agents and Realtors.

The major difference between a Real Estate Agent and a Real Estate Realtor is that the former is not a member of the National Association of Realtors or any other concerned organization, while the latter is a member of NAR. 


Frequently Asked Questions (FAQs)

Q1. What is the difference between a Real Estate Agent and a Broker?

The major differences between a Real Estate Agent and a Real Estate Broker are –

1. Real Estate agents work under Real Estate brokers, whereas the brokers work independently.
2. Real Estate agents are less qualified than Real Estate Brokers. 
3. Real Estate agents have lesser experience than Real Estate Brokers. 
4. Real Estate agents earn less than Real Estate Brokers. 

Q2. How do Real Estate Realtors earn money?

Real Estate Realtors earn money through the Spread Income. These realtors buy properties at a lower rate and sell them at a pretty higher rate.

The difference between their buying price and the selling price becomes the income of the Real Estate Realtors. 

Q3. What is the major difference between a Real Estate Agent and a Real Estate Realtor?

The differences between a Real Estate Agent and a Real Estate Realtor are –

1. Real Estate Realtors are members of the National Association of Realtors or the concerned organization, whereas Real Estate Agents are not. 
2. Real Estate Realtors make money through Spread Income, while Real Estate Agents make money through the commissions received on Real Estate deals. 
3. Real Estate Realtors must keep doing regular courses, while Real Estate Agents must undergo a limited education. 

Q4. What are some of the responsibilities of Real Estate Realtors?

The responsibilities of Real Estate Realtors include supervising and guiding Real Estate Agents, making sure the goals of subordinates match the goals of the organization, finalizing deals with clients, ensuring the paperwork is legal and correct, etc. 


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