A real estate agent is anyone licensed to help buy or sell property, while a Realtor is an agent who belongs to the National Association of Realtors and follows its code of ethics.
Real estate agent
A licensed professional who helps buy or sell property. Licenses are issued by each state.
Realtor
A real estate agent who is a member of the National Association of Realtors (NAR) and follows its Code of Ethics. The word is a registered trademark and is capitalized.
Numbers
There are more than 1.5 million NAR members out of about 3 million licensed agents in the US.
Types
Agent, broker and managing broker.
Fees
Commission is usually 5 to 6 percent, split between agents. After a 2024 NAR settlement, buyer agent compensation is no longer set in listing offers on MLS.
Choosing
Check license status, reviews and experience. Agents can be Realtors or not.
Real estate agent in detail
A real estate agent is a person who has completed pre-licensing education (60 to 180 hours, depending on the state), passed a state exam, and holds a license to help people buy, sell or rent property. Agents work under a licensed broker. They earn a commission, usually a percentage of the sale price. All states require a license.
Realtor in detail
“Realtor” is a trademarked term for a member of the National Association of Realtors (NAR), the largest trade association in the US, with about 1.5 million members. Realtors must follow the NAR Code of Ethics, which has duties to clients, the public and other agents, and pay annual dues. Not all agents are Realtors, but all Realtors are agents or brokers. The term should be capitalized.
Numbers
There are over 3 million active real estate licensees in the US, and about 1.5 million are NAR members, around half. NAR membership has declined from a peak of 1.57 million in 2022.
Types
- Real estate agent or salesperson: licensed to represent buyers or sellers under a broker.
- Broker: has additional education and experience, and can run a brokerage.
- Managing broker or principal broker.
- Buyer’s agent and listing (seller’s) agent.
- Dual agency, representing both sides, which is illegal in some states.
Fees
Commissions have typically been about 5% to 6% of the sale price, split between the buyer’s and seller’s agents. Following a 2024 settlement of lawsuits involving NAR, rules changed from August 2024: sellers’ offers of buyer-agent compensation can no longer be shown on the MLS, and buyers must sign written agreements with their agents before touring homes. Fees are negotiable.
Choosing
- Verify the license on your state real estate commission website, which also shows disciplinary actions.
- Interview two or three agents, and ask about experience in your area and price range, recent sales, and references.
- Ask whether they are a Realtor and about the Code of Ethics. A complaint can be filed with the local Realtor association.
- Ask how they will be paid and sign a written agreement.
- Choose someone who communicates well and knows the market.
Licensing, training and costs
Every Realtor is a licensed real estate agent or broker, but not every agent is a Realtor. Realtors are members of the National Association of Realtors (NAR), which has about 1.5 million members and a Code of Ethics. State licensing usually requires 60 to 180 hours of pre license education and passing a state exam. Brokers need more education and experience and can run their own firms. NAR dues were around 156 USD per year in 2024 and local board fees add more. After the 2024 NAR settlement, practices on buyer agent commissions changed, and buyers now typically sign written agreements with their agents before touring homes. Typical commissions have been around 5 to 6 percent of the sale price in total before the settlement, and rates are negotiable. Ask about the agent’s experience, local sales volume and references, and check the license on your state regulator’s website.
Based on data from the National Association of Realtors and state real estate commissions
