Realtor Markets

The term “Realtor” is often used interchangeably with “real estate agent,” but there is a distinct difference between the two.

What is a Real Estate Agent?

A real estate agent is a person who has obtained a professional license from their state to help clients buy, sell, or rent properties. To get this license, they must complete a certain amount of coursework and pass a state-specific exam.

A real estate agent’s duties can include:

What is a Realtor?

A Realtor is a real estate agent who is also a dues-paying member of the National Association of Realtors® (NAR). The term “Realtor” is a registered trademark of the NAR, and only its members are legally allowed to use the title.

By joining the NAR, a real estate agent agrees to abide by a strict Code of Ethics and Standards of Practice, which often goes beyond state-mandated requirements. This code is designed to protect consumers and ensure a high standard of professional conduct.

Key Differences

FeatureReal Estate AgentRealtor
LicensingA licensed professional who can legally assist with real estate transactions.A licensed real estate agent who is also a member of the NAR.
MembershipNot affiliated with any professional organization.A member of the National Association of Realtors® (NAR).
Code of EthicsMust follow state-mandated laws and regulations.Must follow state laws and the NAR’s stricter Code of Ethics.
Access & ResourcesAccess to resources provided by their brokerage and general market data.Access to the NAR’s extensive resources, training, and a network of other professionals.

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In summary, all Realtors are real estate agents, but not all real estate agents are Realtors. Working with a Realtor provides an added layer of assurance that the professional is bound by a code of ethical conduct established by a national organization.tent.

Do I need a realtor to sell my home?

You are not legally required to use a Realtor to sell your home. You can sell your home yourself in a process known as “For Sale By Owner” (FSBO). While this approach can save you money on commission fees, it comes with significant challenges and risks that you should consider carefully.

Here’s a breakdown of the pros and cons of selling your home with and without a Realtor.

Selling with a Realtor (The Traditional Route)

Pros:

  • Expertise and Experience: A Realtor brings professional knowledge of the local market, including how to price your home competitively, what repairs or staging will provide the best return on investment, and how to negotiate effectively.
  • Wider Market Reach: Realtors have access to the Multiple Listing Service (MLS), the primary database used by agents to find properties for their clients. Listing on the MLS automatically syndicates your home to major real estate websites like Zillow and Realtor.com, ensuring maximum exposure.
  • Negotiation Skills: A Realtor acts as an objective third party, helping you navigate offers, counter-offers, and difficult conversations without letting emotions get in the way. This can lead to a higher final sale price.
  • Handling the Paperwork: Real estate transactions involve a significant amount of complex legal documentation, including purchase agreements, disclosures, and title information. A Realtor is trained to handle this paperwork correctly, reducing the risk of costly legal mistakes.
  • Time Savings: Selling a home is a full-time job. A Realtor handles all the time-consuming tasks, from scheduling showings and open houses to fielding phone calls from potential buyers and their agents.

Cons:

  • Commission Fees: This is the primary reason sellers consider the FSBO route. A Realtor’s commission is typically 5-6% of the home’s sale price, which can amount to tens of thousands of dollars. It’s important to note that this commission is often split between your agent and the buyer’s agent.

Selling Without a Realtor (For Sale By Owner – FSBO)

Pros:

  • Saving on Commission: By not using a listing agent, you can save the commission fee that would have gone to them (usually around 2.5-3% of the sale price). However, you will likely still need to offer a commission to the buyer’s agent to incentivize them to show your home.
  • Complete Control: You have full control over the asking price, marketing materials, showing schedule, and negotiation process.

Cons:

  • Lower Sale Price: Studies by the National Association of Realtors consistently show that FSBO homes sell for significantly less than agent-assisted sales—often tens of thousands of dollars less. This can negate any savings from not paying a commission.
  • Limited Exposure: Without access to the MLS, your home won’t be seen by the vast majority of real estate agents and their clients. FSBO listings are often limited to websites and a yard sign, which drastically reduces your pool of potential buyers.
  • Time-Consuming and Stressful: You are responsible for everything: staging, professional photography, writing the listing description, marketing, scheduling and hosting showings, vetting potential buyers, and handling all the phone calls and emails. This can be overwhelming, especially if you have a full-time job.
  • Lack of Expertise: It’s easy to overprice your home and scare away buyers, or underprice it and leave money on the table. Without an expert negotiator, you are also at a disadvantage when dealing with a buyer who is likely represented by an experienced agent.
  • Legal and Financial Risks: A single mistake in the legal paperwork or disclosures can lead to a canceled sale or even a lawsuit down the line. You may need to hire a real estate attorney to help you, which adds to your costs.

Conclusion

While selling your home without a Realtor is possible, for most people, the potential savings on commission are outweighed by the risks and extra work involved. The data suggests that agent-assisted homes typically sell for more money, more quickly, and with less stress. For this reason, the vast majority of sellers choose to work with a professional

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