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When reading about real estate in publications or online platforms, have you ever wondered why the word “realtor” is often in capitalized letters or marked with a registered trademark symbol? Or what the difference is between “REALTOR” and “real estate agent?”
Second question first. While the terms are often used interchangeably, there are significant differences. The rule of thumb holds that all REALTORS are real estate agents but not every real estate agent is a REALTOR.
Through coursework and exams, real estate agents have earned a license to help people buy, sell or rent property. Their job includes evaluating property values, advertising properties, negotiating deals, and guiding clients through mortgages, legal agreements and other elements of a real estate sale or purchase.
A REALTOR, on the other hand, is a real estate agent who has undertaken additional training and commitments. The first step toward becoming a REALTOR is joining the National Association of REALTORS® (NAR), which, with more than 1.5 million members, is the U.S.’s largest trade association. Prospective REALTORS must join an NAR-affiliated local real estate board or association as well. They also agree to abide by NAR’s Code of Ethics, whose strict standards of business conduct are reinforced through regular ethics training throughout a REALTOR’S career.
(Brokers are another example of real estate professionals who have completed additional education and licensing requirements. Working independently or with other brokers, they can hire real estate agents; manage marketing, hiring, training and other business operations; and help execute complex transactions, among other things. Here again, a REALTOR can be a broker, but a broker isn’t necessarily a REALTOR.)
Benefits of NAR membership and REALTOR status include additional opportunities for networking, training, mentorship, potential clients and political advocacy.
Now back to the use of the word “realtor.” NAR requires its members to use “REALTOR®” when identifying themselves and requests this designation apply exclusively to the REALTOR echelon of the real estate industry. While the association prefers REALTOR®, it recognizes that browser software limitations and media outlet style guides may disallow reproduction of registration marks and/or all caps, so “Realtor” is acceptable – but only with the capital letter, just like Yahoo!, Apple and other copyrighted brands.
“The biggest benefit of being a REALTOR is the fact that I can set myself apart from a large pool of my competitors who are not members. Once I explain that REALTORS are held to a higher standard of ethics than [real estate] salespeople, and that we have an additional layer of oversight, it gives people an extra peace of mind, especially when they have preconceived skepticism about working with a real estate agent,” a REALTOR declared in a Reddit real estate forum.
