You've probably seen the word "Realtor" used interchangeably with "real estate agent" — but they're not exactly the same thing. Understanding the difference can help you make a more informed choice when putting together your homebuying or selling team.
Real Estate Agents vs. Realtors
All Realtors are licensed real estate agents, but not all agents are Realtors. To use the Realtor designation, an agent must join the National Association of Realtors (NAR) — a professional organization that's been around since the early 1900s and is one of the largest trade associations in the country.
Membership isn't automatic. Agents who join agree to follow the NAR's Code of Ethics, a set of professional standards that go beyond what state licensing laws require. Those standards cover how agents treat clients, other agents, and the public.
What NAR Membership Means in Practice
A Realtor has made a formal commitment to ethical conduct — not just a professional aspiration. If a Realtor violates the Code of Ethics, clients have a formal process for filing a complaint with their local Realtor association.
NAR members also have access to ongoing education, professional development resources, and a broader professional network. Many Realtors cite the networking and training as some of the most valuable benefits of membership.
Does It Cost More to Work With a Realtor?
Generally, no. Agent commissions in real estate are typically negotiated as a percentage of the sale price and are usually paid by the seller, not the buyer. Whether your agent is a Realtor or not typically doesn't change the commission structure, though this can vary by transaction and location.
Why It Matters to You
When you're in the middle of a home purchase, you want people on your team who take their professional responsibilities seriously. The Realtor designation is one signal — not the only one, but a meaningful one — that an agent is engaged in their profession beyond the minimum required.
That said, what matters most is still your personal experience with the agent: how they communicate, how well they know the market, and whether they're genuinely looking out for your interests.
Once you've found the right agent, make sure you have your financing in order too. Explore your loan options to see what you may qualify for.
