What is a Realtor and How Are They Different from Real Estate Agents?
Buying or selling property involves many moving parts, and having professional representation makes a huge difference in your experience and results. I often hear people use the terms "Realtor" and "real estate agent" interchangeably, but there's actually a significant distinction between these two titles. Let me clear up this common confusion and explain exactly what makes a Realtor unique in the real estate industry.
REALTOR®: A REALTOR® is a licensed real estate professional who is a member of the National Association of REALTORS® (NAR) and subscribes to its Code of Ethics. This trademarked term can only be used by real estate agents and brokers who maintain active membership in their local real estate board affiliated with NAR.
The Evolution of the Realtor Profession
The National Association of REALTORS® started in 1908 as the National Association of Real Estate Exchanges. The term "REALTOR®" came about in 1916 when Charles N. Chadbourn, a real estate professional from Minneapolis, proposed the name. NAR trademarked the term to distinguish members who follow a strict ethical code from those who simply hold a real estate license.
This distinction became critical as the real estate industry grew. The Code of Ethics, first adopted in 1913, set professional standards that went beyond state licensing requirements. These guidelines helped establish trust between real estate professionals and their clients.
Key Differences Between Realtors and Real Estate Agents
The main distinction lies in professional membership and ethical commitments. While all Realtors are real estate agents, not all real estate agents are Realtors. Here's what sets them apart:
Realtors must maintain active membership in their local NAR chapter
They complete additional ethics training beyond state requirements
Realtors have access to advanced market data and research tools
They network with other NAR members nationwide
The NAR Code of Ethics
The Code of Ethics isn't just a document - it's a binding agreement that shapes how Realtors conduct business. The code breaks down into three main categories:
Duties to Clients: Putting client interests first, maintaining confidentiality, and providing honest service
Duties to the Public: Fair treatment, truth in advertising, and following anti-discrimination laws
Duties to Other Realtors: Cooperation, respect for exclusive relationships, and dispute resolution procedures
Benefits of Working with a Realtor
Choosing a Realtor gives you several advantages in your real estate transaction:
Access to the Multiple Listing Service (MLS) for comprehensive property searches
Professional networks that can help find off-market properties
Regular market updates and industry insights
Higher standards of accountability through NAR membership
Common Misconceptions
Let's clear up some frequent misunderstandings about Realtors:
Myth: All real estate agents are Realtors Truth: Only NAR members can use the Realtor designation Myth: Realtors charge more than other agents Truth: Commission rates are negotiable and not tied to NAR membership Myth: The Code of Ethics is just for show Truth: Violations can result in membership suspension or termination
How to Choose the Right Realtor
Finding the right Realtor involves asking the right questions:
What areas and property types do you specialize in?
How do you communicate with clients?
What's your typical response time?
Can you provide recent client references?
Making Your Decision
Your real estate transaction deserves professional representation from someone committed to the highest ethical standards. At Bellhaven Real Estate, our Realtors uphold these principles while providing exceptional service. Ready to start your real estate journey with a dedicated professional? Our team is ready to show you the Bellhaven difference.