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25
Agents and REALTORS®: Real Estate Pros Explained
Are you buying or selling a home? This is one of the most important transactions you'll ever make, and you already know you need a professional to guide you through the process. But what are your options for real estate agents, and what are the differences between them? Real estate brokers, agents, and REALTORS® are all property pros who can help buyers and sellers, but they have different qualifications and responsibilities. Whether you're buying your first home or turning over yet another investment property, it's never too late to brush up on their backgrounds and understand the distinctions between your professional options. Instead of using these terms interchangeably, make sure you know what each word means.
So, what's the difference between real estate agents, real estate brokers, and REALTORS®? At Cressy & Everett Real Estate, our real estate agents and REALTORS® are committed to representing every client with compassion and transparency. We want you to be as informed and empowered as possible, so here's our breakdown of the roles that each of us play.
Real Estate Agents Have Licenses to Buy and Sell
Quite simply, a real estate agent is an individual who is licensed to represent buyers or sellers in real estate transactions. Real estate agents follow state-specific requirements, which usually include training, background checks, insurance verification, and examinations. If you're buying or selling your home or business, you need a real estate agent to represent your interests and navigate the legal and financial process.
Of course, some real estate agents have additional titles or licenses, so you might want to know what they mean. While it's not necessary to become a broker or belong to the National Association of REALTORS®, these extra steps do have specific purposes.
Real Estate Brokers Have Licenses to Run Businesses
Some real estate agents become brokers and some work for brokers. However, all brokers start as agents. The main distinction between an agent and a broker is merely this: a license to own a business. Real estate brokers are always agents who passed state-specific exams and now have licenses to run their own real estate companies, though they may or may not employ anyone else. These licenses require training, coursework, course exams, state exams, and experience working as a real estate agent.
Of course, while becoming a broker requires some experience, it isn't the next step for every real estate agent. Many agents have years of sales experience but have never worked independently or started their own agency. If you want an experienced real estate agent, their licenses and memberships will give you some information, but their experience and reputation are just as significant.
REALTORS® Belong to a National Association
Pros who call themselves REALTORS® aren't hitting caps lock before using a nickname for "real estate agent". REALTOR® is actually a trademarked term, and it describes a member of the National Association of REALTORS®. Membership isn't required to work as an agent or broker, but 1.2 million real estate professionals decided to take this step, in part because of the prestige and opportunities it brings.
So, what makes a REALTOR® different? In order to keep this title, professionals must abide by a strict code of ethics and standards, which requires regular training and testing to make sure they're up-to-date. These REALTORS® belong to a large trade organization of real estate professionals, giving them access to industry insights and accountability to their peers.
Are you ready to hire a real estate agent or REALTOR® in Indiana or Michigan? Contact Cressy & Everett Real Estate to get in touch with one of our experienced real estate professionals.
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