Most people won’t buy or sell more than a handful of properties in their life. When they start the journey, all they know is the face they saw on a bus bench and the word “Realtor” beside the agent’s name.
So exactly what does a Realtor do? If you’re looking to buy or sell a property, it helps to know exactly what to expect when you choose to work with a professional.
If you’re interested in working in the real estate industry, it’s even more important to understand the distinction between real estate agents and Realtors. This will help you plan your career path and shape your professional goals.
What Is the Difference Between a Realtor and a Real Estate Agent?
The terms “Realtor” and “real estate agent” are often interchanged. Many people don’t realize they aren’t the same thing. While there’s a lot of overlap in the roles and responsibilities of real estate agents and Realtors, Realtors go a step further in the process than real estate agents go.
A Realtor is anyone who is a member of the National Association of Realtors (also known as NAR-the largest trade association in the United States). Anyone who works as a real estate professional that has passed their required coursework and obtained their necessary licenses can apply to become a Realtor.
Realtors are subject to more requirements than real estate agents. There are official guidelines to maintain membership with the National Association of Realtors. The association has an official code of ethics and high standards for all areas of real estate practice.
They require their members to obtain additional education and expertise outside of the normal certification courses, and that education needs to be periodically updated to sustain Realtor status.
How Do You Become a Real Estate Agent?
In order to become a Realtor, you must first become a real estate agent. Every state has different requirements for becoming a real estate agent, but they all involve taking a licensing course. Some states require these courses to be more comprehensive than others. Requirements can span between 60 hours and 180 hours, depending on the state.
Once you’ve completed your course, your course instructor will direct you to your state’s official real estate license exam. The exam is technically two exams. One will focus on state real estate matters, and the other will focus on national real estate matters. You’ll need to pass both tests.
Once you’ve passed the tests, you may have to submit to additional requirements. Many states require official background checks and fingerprinting for real estate agents, as they’re generally allowed to move freely through private property and will often have keys to their client’s homes and businesses.
Upon completion of the course, licensure exam, and additional requirements, you can submit an application to your local real estate regulatory board to be approved for a real estate license. When you physically receive your real estate license, you can begin to work for a real estate broker.
How Do You Become a Realtor?
After new agents complete the process of becoming real estate agents, they can begin the process of becoming Realtors. The National Association of Realtors has local branches all over the country.
To become a Realtor, you’ll need to work with a real estate broker who is a Realtor. You’ll gain your membership through their membership, and they’ll represent your real estate firm as the lead Realtor.
You can also become a real estate broker. Real estate brokers are established and experienced real estate agents who are subject to additional licensing requirements to become fully independent. They don’t need to work for a brokerage.
They can establish their own brokerages or continue to work as an independent agent. Real estate brokers can become Realtors without the referral of another broker.
What Does a Real Estate Agent Do?
Real estate agents do far more than the average client realizes. Although it seems like a real estate agent’s job is to look presentable and prepare the necessary paperwork, this is only the tip of the topic iceberg.
Real estate agents are busy, hardworking, and determined people who have to manage a significant amount of responsibilities for the purchase or sale of any property under their purview. They do this in addition to generating leads, advertising, and maintaining their presence in the community and local real estate market.
Facilitating All Communication
When a property is being bought or sold, a real estate agent is the leader of that entire operation. It’s their job to facilitate communication between everyone involved in those real estate sales and keep things moving according to schedule.
This communication and coordination are some of the most logistically complicated parts of a real estate agent’s job.
Working with Home Inspectors and Helping Arrange Repairs or Renovations
Before a property can be appraised and sold, an inspector will need to come out to make sure the house is safe and up to code. In some cases, repairs or renovations may be necessary to make the home safer or more appealing to buyers. Real estate agents act on behalf of buyers or sellers and can work to facilitate this home inspection process.
Staging, Listing, and Showing Properties
Real estate agents help the homeowner prepare their property for sale. This sometimes involves some light interior decorating.
When the property is looking its best, the real estate agent will photograph the property or hire a photographer to do so. Those photos will become part of a listing that the real estate agent will create to make the property appealing to buyers.
When a potential buyer expresses interest, the listing agent will tour them through the property and persuade them to make a purchase. Sometimes, real estate agents will hold open house events to entertain multiple potential buyers simultaneously.
Helping Buyers Work with Lenders
Real estate agents helping someone purchase a property will help their clients get pre-approval from a mortgage lender. This allows the buyers to better understand their purchase price range and puts them in a position to move quickly when they’ve found a property they truly love.
Reviewing and Writing Offers
A lot of paperwork goes back and forth during a real estate transaction. The real estate agents involved are responsible for writing and reviewing this paperwork. The buyer’s agent works with the seller’s agent to come to an agreement on paper.
Negotiations
When an agreement cannot be easily reached on the sale price (and it usually can’t), agents will negotiate with each other on behalf of their client’s needs. The goal is always to create a scenario that both the buyer and the seller feel good about. These are likely to include closing costs, the price of the home, and more.
Helping To Close Sales
When offers have been accepted and agreements have been reached, real estate agents help to conclude the paperwork necessary for finalizing the sale of a property.
After this is done, the real estate agents involved will finally get their percentage of commission from the sale. Real estate agent commissions will vary depending on several factors. Commissions change from every sale and there is never a guarantee on what you will walk away with when the final paperwork is signed.
What Does a Realtor Do?
A Realtor does everything a real estate agent does while completing the additional expectations put in place by the National Association of Realtors. They need to perform all their work to a unified set of standards and ethics developed by the NAR. Additionally, they’re expected to meet the continuing education requirements mandated by NAR.
Essentially, Realtors are real estate agents that have a lot more to do. There are upsides and downsides to becoming a Realtor. Many Realtors find that they appreciate the guidance, educational resources, and standards implemented by the NAR. They see it as a roadmap to help them grow, learn, and increase their performance.
Other real estate agents, particularly those that are already very busy, may find that becoming a Realtor leaves their plate a bit too full. When you’re already juggling a lot, the idea of adding more to the pile can sometimes feel overwhelming.
Is It Better to Be a Real Estate Agent or a Realtor?
It’s better to be great at your job. It doesn’t matter if you’re a real estate agent or a Realtor. If your strategies are working, you’re clearly following real estate laws, you’re honest with your clients, you’re continuing to learn, and you maintain excellent professional relationships, you can take any route you’d like.
You don’t need to join the National Association of Realtors if you don’t feel like it would be the most beneficial choice for you. Consider your options, as well as your alternatives, before you make any long-term commitments. Do what feels right.
How Real Estate Coaching Helps Real Estate Agents
Many real estate agents find that professional coaching is a better fit for their lifestyle and professional ambition than becoming a Realtor.
With coaching through Harris Real Estate University, you’ll have access to a wealth of educational materials that you can browse according to your own schedule and at your own pace.
One-on-one coaching sessions can provide you with the support you need to overcome obstacles or challenges you may be facing with your professional goals or productivity. This customized approach to learning may be more valuable than a standard course that’s the same for every participant. With coaching, your personal needs are at the forefront.
You can schedule a free coaching consultation call with a Harris-certified coach to learn more about the benefits of real estate coaching.
Sources
Regulatory Agencies | Resources | Arello
FAQs about Home Inspection | American Society of Home Inspectors
Real Estate Agent vs. Broker: What’s the Difference? | The Balance
