Sonic Realty

What Is a REALTOR® vs. Real Estate Agent?

What Is a REALTOR vs. Real Estate Agent?

When navigating the complex world of real estate, you’ll encounter terms like REALTOR® and real estate agent. While these terms are often used interchangeably, they have distinct meanings and implications. Understanding the difference between a REALTOR® and a real estate agent can help you make informed decisions when buying or selling property.

1. Real Estate Agent: The Basics

A real estate agent is a licensed professional who assists clients in buying, selling, and renting properties. To become a real estate agent, one must complete pre-licensing courses and pass a state exam. The requirements for licensure vary by state but generally include coursework on real estate principles, laws, and practices. Once licensed, real estate agents can join a brokerage and work with clients.

Real estate agents have several key responsibilities:

  • Listing Properties: Helping sellers price, market, and show their homes to potential buyers.
  • Assisting Buyers: Finding properties that meet buyers’ needs and helping negotiate purchase agreements.
  • Rentals: Facilitating rental transactions between landlords and tenants.
  • Paperwork: Managing the complex documentation involved in real estate transactions.

2. REALTOR®: A Step Further

A REALTOR® is a real estate agent who is an active National Association of REALTORS® (NAR) member. The term REALTOR® is a registered trademark that signifies a real estate professional who adheres to a strict code of ethics and standards of practice set forth by the NAR.

To become a REALTOR®, an agent must:

  • Join the NAR: This requires membership in a local real estate board or association affiliated with the NAR.
  • Adhere to the Code of Ethics: REALTORS® must follow a comprehensive code beyond state regulations. This code emphasizes professionalism, integrity, and a commitment to protecting clients’ interests.
  • Ongoing Education: REALTORS® must often participate in continuing education to stay current with real estate laws, technology, and market trends.

3. Key Differences

  • Membership and Ethics: The primary difference between a REALTOR® and a real estate agent is the REALTOR®’s membership in the NAR and commitment to its ethical standards. This affiliation can offer additional assurances to clients about the level of service and ethical conduct they can expect.
  • Reputation and Trust: REALTORS® often leverage their NAR membership as a mark of credibility and professionalism. Clients may prefer working with REALTORS® because they adhere to the NAR’s code of ethics, prioritizing clients’ best interests.
  • Networking and Resources: REALTORS® have access to a vast network of professionals and resources through the NAR, including market data, research, and educational opportunities. This can enhance their ability to serve clients effectively.

4. Choosing the Right Professional

When deciding whether to work with a REALTOR® or a real estate agent, consider your specific needs and the professional’s qualifications. Both can provide valuable services, but a REALTOR®’s commitment to ethical standards and ongoing education may offer additional peace of mind. It’s also important to interview potential agents or REALTORS®, ask for references and ensure they have experience in your local market.

Conclusion

Understanding the difference between a REALTOR® and a real estate agent is crucial for anyone involved in real estate transactions. While all REALTORS® are real estate agents, not all REALTORS® are REALTORS®. The distinction lies in the REALTOR®’s membership in the NAR and adherence to its code of ethics, which can provide clients with higher confidence in the quality and integrity of the service they receive. Choosing the right professional is critical to a successful real estate experience, whether buying, selling, or renting.

Articles

Zoning: What It Is and How It Affects Your Property Rights

Zoning is a fundamental aspect of urban planning and land use regulation that significantly impacts...

Will Realty Income Cut Dividend? Understanding the Factors at Play

Realty Income Corporation, often referred to as “The Monthly Dividend Company,” has a robust track...

Why Do Property Taxes Go Up?

Introduction Property taxes are an essential source of revenue for local governments, funding services like...

Who Owes a Fiduciary Duty in Real Estate and What Does That Mean for Your Transaction?

When navigating the complexities of a real estate transaction, it’s crucial to understand the concept...

What to Know About Filing a Property Tax Appeal

Introduction Property taxes can be a significant financial burden for homeowners. These taxes are based...

What is a Townhome?

When navigating the world of real estate, you’ll come across various types of residential properties...

What Is a Tiny House? 12 Surprising Facts

  The tiny house movement has gained significant popularity recently as more people seek simplicity...

What Is a Timeshare and Is It Worth Buying?

A timeshare is a unique form of vacation property ownership that allows multiple individuals to...

What Is a REALTOR® vs. Real Estate Agent?

When navigating the complex world of real estate, you’ll encounter terms like REALTOR® and real...

DJ Peterson

Website:

Affiliated Business Arrangement Disclosure Statement
This is to give you notice that Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC have a business relationship. The nature of the relationship between the Referring Party and the provider(s), including percentage of ownership interest, if applicable, is: Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC are all 100% owned by the same party. Because of this relationship, this referral may provide any of the above parties with financial or other benefit.
A. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for settlement of your loan on, or purchase, sale, or refinance of, the subject property.
THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
Provider and Settlement ServiceCharge or Range of Charges
Sonic Realty LLC1%-6% of purchase price
Sonic Title Agency, LLC Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.)
Title Search Fee: $250 - $325 (where applicable)
Closing Fee: $450 - $650
Sonic Loans Inc.

This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.

Loan Origination Charge: 0-3 % of loan amount (may include 3rd party fees)
Loan Discount Fee/points: 0.5%-6% of loan amount.
Application/Processing Fee: $0.00 - $875.00
Flood and tax service: $0.00 - $95.00
Underwriting Fee: $0.00 - $1295.00
Document Review Fee: $0.00 - $400.00
Appraisal Fee: $0.00 - $850.00
Credit Report Fee: $0.00 - $135.00

Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.
B. Set forth below is the estimated charge or range of charges for the settlement services of an attorney, credit reportingagency, or real estate appraiser that we, as your lender, will require you to use, as a condition of your loan on this property, to represent our interests in the transaction.
Sonic Loans Inc. provides mortgage lender/broker services. Sonic Realty LLC provides real estate brokerage services. Sonic Title Agency LLC provides title insurance and settlement services.

Provider and Settlement ServiceCharge or Range of Charges
Appraisal Fee$0-$800
Credit Report Fee$63-$125
 Actual charges may vary depending on the lender and loan program selected which can be found on your loan estimate.
ACKNOWLEDGMENT
I/we have read this disclosure form and understand that Sonic Loans Inc., Sonic Realty, LLC, or Sonic Title Agency LLC are referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral.