Dear Olivia,
I often see various titles after people’s names in the real estate industry, like broker, real estate agent, and Realtor. What do these titles mean?
Thanks!
Curious About Real Estate
Though people outside the real estate industry might look at the various titles we carry as being interchangeable, there are important differences between them.
In fact, there are quite a few titles to keep track of. Here’s a few of the most common ones:
Real Estate Agent
Real estate agents are licensed professionals that must complete licensure training in the state in which they work. The depth and breadth of training varies by state, but in Wyoming, new real estate agents must complete and pass two salesperson courses, pass the state exam for salespersons, and pass the national exam for salespersons, in addition to being fingerprinted and having a background check completed.
Once all of these steps are completed and the examinations have been passed successfully, work can begin as a real estate agent.
Realtor
A Realtor is a licensed real estate agent that is also a member of the National Association of Realtors (NAR). Since Realtors are a member of a professional organization, they must adhere to professional guidelines of standards and practice, including working within the NAR’s code of ethics. As a result, Realtors are held to a higher standard than other real estate professionals.
Realtors also have access to a lot of helpful benefits that improve knowledge and skills related to the real estate industry. This includes a wealth of educational resources, professional conferences and expos, continuing education courses, and special designations and certifications that indicate a Realtor has specific training for certain types of real estate transactions, like the Accredited Land Consultant or Certified Residential Specialist designations.
Listing Agent/Buyer’s Agent
A listing agent works with sellers throughout the process of selling their home. This includes activities such as marketing the home, holding open houses, and overseeing inspections, as well as negotiating on the sellers’ behalf regarding pricing and contingencies and guiding the sellers through the process of closing.
A buyer’s agent, on the other hand, represents the interests of the buyer. A buyer’s agent will help you find potential homes, recommend other professionals (i.e., lenders) to help you along in the process, and draw up offers to present to the sellers and their listing agent.
Here’s a fun fact: hiring a buyer’s agent usually doesn’t cost you a single penny. Instead, the seller is typically the one that pays the commission fees for the buyer’s agent (and their listing agent too).
Broker
To become a broker, a real estate agent or Realtor must complete additional educational requirements and pass a broker’s licensure examination. These exams vary from one state to the next, but in general, broker exams cover a wide-range of topics, including taxes, insurance, contracts, and ethics, but at a much deeper level than what is involved in the licensing coursework for real estate agents.
Usually, to be eligible for a broker’s license, a real estate agent or Realtor must have some experience in the industry – about three years, on average – of work as a licensed professional.
With that, you have a quick summary of some of the most common titles for real estate professionals. As always, if you have other questions, please don’t hesitate to reach out to me at 307-856-3999 or send me a message!
~Olivia