Isaac Toussie writes about the real estate business, an industry he knows well as a professional land developer of many years’ experience. Isaac Toussie likes sharing his first-hand insights online, but please be advised that what is presented is only the personal opinion of Isaac Toussie, and should not be construed as any substitute for professional advice from the likes of lawyers and accountants. So before embarking on any business decision of consequence, consult those who are properly qualified!
Today’s article is about industry fundamentals. We will cover what the difference is between a realtor and a real estate agent. People often use the two words interchangeably, but there is a rather important difference between the two. That difference involves credentials.
A realtor typically has more training and more experience in the real estate business than does a real estate agent. While both a realtor and a real estate agent will need to be licensed, the realtor has gone the extra mile in obtaining a further level of expertise in the industry. For example, realtors belong to a professional organization, the National Association of Realtors, which provides for a strict code of ethics that must be adhered to in order to remain in good standing. Actually, that’s the only sure-cut difference, the matter of membership. Thus, the term “realtor” is, in fact, an actual registered trademark.
Of course, there exist a great many superb real estate agents who do a good bang-up job day in/day out. But being a member of a professional association gives you, the consumer, a venue, should your experience be much less than satisfactory, other than the usual government watchdog agencies.
Agents are, however, bound by a certain number of legal obligations, such as preserving confidentiality, honoring fiduciary duties, and reporting all financial numbers.
So is there any practical difference between a realtor and a real estate agent?
Not too much, and mostly on paper. Again, realtors have a little more education – or a lot more, depending on your perspective – but other than the extra amount of “book knowledge” required, you can trust on either one to help you when it comes to acquiring or selling property. In my personal experience over the years, I have had cause to work with both on numerous occasions but have never had a reason to prefer one over the other.