You have probably heard the terms real estate agent and Realtor used as if they mean the same thing. They are related, but they are not identical. Understanding the difference can help you know what to expect when choosing someone to help you buy or sell a home.
A real estate agent is someone who has completed the required education, passed a state licensing exam and is licensed to help clients buy, sell or rent property. A Realtor is a licensed agent or broker who has also chosen to join the National Association of Realtors, often called NAR, the country’s largest trade association for real estate professionals. The term Realtor is a registered trademark that only members may use.
Membership is voluntary. Many excellent agents are members, and some are not.
Realtors agree to follow the association’s Code of Ethics, which sets standards for honesty, fair dealing and treatment of clients, customers and other agents. Members are expected to complete periodic ethics training, and complaints about members can be reviewed through local Realtor associations.
Members have access to training, designations in specialties such as buyer representation or seniors real estate, market research, and tools that can help them serve clients. Local and state associations also offer networking and education.
Choosing to join and maintain membership can be one sign that an agent takes their profession seriously. It is not a guarantee of quality, so it is still smart to check reviews and interview a few candidates.
A quick way to check is to ask the agent directly or look for the Realtor logo on their materials. You can also verify any agent’s license status through your state’s real estate licensing agency.
Whether or not an agent is a Realtor, compensation is typically a commission paid at closing, often a percentage of the sale price. Commissions vary by market and are negotiable. Buyers usually sign a written agreement with their agent that spells out services and compensation, so read it carefully.
The right professional, Realtor or not, will help you navigate pricing, negotiations, inspections and deadlines with confidence.
Your agent and loan officer work closely together from offer to closing. Getting preapproved before you start touring helps both of you move quickly when you find the right home. If you are just getting started, our first-time home buyer page and loan program comparison are helpful resources.
FLO Mortgage partners with real estate professionals throughout our community. Meet our loan officers and get ready to shop.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
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