When it comes to the real estate industry, many of the terms and titles that are employed can be bewildering to unfamiliar people. The phrases “real estate agent” and “real estate broker” are sometimes used interchangeably in the real estate profession. Real estate agents and real estate brokers are not the same thing, but only those who work in the field are aware of this apparent business secret: many consumers aren’t even aware that there is any distinction between the two. Apart from educational qualifications, both vocations necessitate a wide range of skills and abilities in addition to their academic backgrounds.
If you’re a real estate agent or a Realtor, you may find this article useful in explaining the differences between the two roles to your clients and potential clients. At the Sunny Isles Florida real estate, we try to be up to date with knowledge of this sort, so we’re able to serve our clients to the best of our ability. We hope you, too, can learn from this article and pass on these facts.
KEY DIFFERENCES BETWEEN REALTOR AND REAL ESTATE AGENT
As mentioned before, there are several differences between a realtor and a real estate agent, but only known to someone; however, the most important difference between a real estate agent and a Realtor is the level of education. You may have often wondered what the difference between the two terms is, especially since most people choose to use both terms interchangeably.
Even if they perform similar duties, the National Association of Realtors sets a different set of standards for each (NAR). Having a better understanding of the difference between a real estate agent and a Realtor, let’s first look at the job of a real estate agent and then at the qualities needed for each.
WHAT IS THE ROLE OF A REAL ESTATE AGENT?
Real estate agents are individuals who have received specialized training and certification to assist clients in the purchase and sale of commercial and residential properties. In the real estate industry, certifications such as professional in sales, associate broker, or broker can all be utilized by the real estate agent. Real estate agents typically assist with residential and commercial properties, depending on their specialization. A listing agent, a buyer’s agent, and a rental agent are examples of real estate agents specializing in different areas.
Real estate agents must complete a certain number of courses and pass an examination to obtain a real estate license to practice as professional, certified real estate agents. The licensing process differs from one state to the next in length and complexity. According to the Bureau of Labor Statistics, applicants for real estate licenses must complete between 30 and 90 hours of supervised training from a recognized institution, university, or vocational college, depending on which state they intend to be certified in. After that, candidates must score well on an examination of federal, state/local, as well as industry-specific real estate rules and practices.
Depending on what state you wish to enroll in, all real estate agents are obligated to pay an annual licensing fee and renew their licenses every few (usually 1 or 2) years. It is also important to note that before they can apply for license renewal, in some states, the agents may be required to complete a particular number of hours of continuing education through different courses they may opt for.
WHAT IS THE ROLE OF A REALTOR?
A committed member of the National Association of Realtors (NAR), the largest trade organization in the United States of America, is referred to as a Realtor by the registered trademark name “Realtor.”
Even though NAR has been around for over a century, the organization has only utilized the name ” Realtor ” for the past 40 years only. The National Association of Real Estate Exchanges was established in 1908 and later renamed The National Association of Real Estate Boards in 1916.
Only those licensed to practice real estate and actively engaged in the business can join the National Association of Realtors (NAR). It is also necessary to note that before any person who is a non-principal can join a Realtor association, the principals must enter it. Employees of a company cannot participate if a company owner does not want to do so. Each company has a “designated Realtor,” who is a member of the company’s leadership team.
Any licensed or affiliated agents, brokers, or appraisers can join once a principal has done so. A “designated Realtor” must pay NAR a non-member fee for each non-member identified by the “registered Realtor.”
WHAT IS THE NAR’S CODE OF ETHICS?
Realtors are distinct from real estate agents who are not members of the NAR because of the code of ethics, according to the National Association of Realtors. When you join NAR, you commit to following the organization’s Code of Ethics and Professional Standards, which spell out your obligations to your clients as well as the public at large and your fellow Realtors. Regular training on the Code of Ethics may be needed and added as a necessary condition for membership.
According to the National Association of Realtors, becoming a Realtor is in part motivated by the association’s well-known members. With the promise of fairness and honesty, customers are willing to choose a real estate agent. Realtor associations are generally held responsible for ensuring that their members adhere to the given code without fail; in this regard, some have even created mechanisms for dealing with breaches by their members.
The difference and the importance of and between “Realtor vs. real estate agent” should now be clear to you. At this time, the real estate market is growing, with brilliant people in command of each specific specialty. Real estate agents and Realtors play a significant role in the home-buying process, and you should appreciate their efforts no matter how or not you choose to utilize their services.
Sunny Isles Florida real estate is a firm ready to explain the differences between the terms that may confuse them for their benefit. We hope you found this helpful.