What is a REALTOR®?
A REALTOR® isn’t just a real estate agent, they’re professional members of the National Association of REALTORS®. Not all real estate agents are REALTORS®—make sure you work with one who is. View our blog post for more information on the differences between agents, brokers and REALTORS.
Why should you work with a REALTOR®?
When consumers choose to work with a REALTOR®, the journey toward their new home (or selling their current home) becomes much clearer. Here’s why you want a REALTOR® on your side:
- REALTORS® are trained professionals and experts in their communities. They know the housing markets—prices, value, what’s hot, what’s not—better than anybody else.
- REALTORS® have access to resources and a network of trusted professionals, including mortgage lenders, inspections services and more, that help consumers on their journey.
- REALTORS® are bound by a strict code of ethics that emphasizes transparency, fairness, and equal housing opportunity.
Support and Guidance
REALTORS® can provide resources for you to research local information on utilities, zoning, schools, and more. They also have objective information about each property.
Advocates
Laws and regulations change. Many REALTORS® handle hundreds of transactions over the course of their career. They stay in the know as they must complete continuing education.
Client Champions
Every REALTOR® must adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment. A REALTOR®’s first obligation is to you, the client.
Negotiation Skills
There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including discussing the best ways to meet your goals.
What is the Difference between a REALTOR Vs. Real Estate Agent Vs. Broker?
A real estate professional is your partner in homeownership. Finding the right one to represent you is an important choice that you will want to make early in the process.
“Agent” is a catchall phrase that is used, in casual conversation, to describe the three types of professionals who buy and sell real estate: agents, brokers, and REALTORS®. Even though people use those terms interchangeably, there are key differences you should be aware of: A REALTOR® is a broker or agent who belongs to the National Association of REALTORS® (NAR), the largest trade group in the country.
A REALTOR® commits to following a strict Code of Ethics intended to protect buyers and sellers. Agents and brokers who are not NAR members can’t call themselves REALTORS®.
A real estate agent is a licensed professional who helps people buy, sell, rent, or invest in homes. To become an agent, a person must take pre-licensing training from a certified institution (these vary from state to state) and pass their state’s real estate licensing exam. Once they have their license, an agent must affiliate themselves with a real estate brokerage and complete required training to keep their real estate license active.
A real estate broker is a professional who has additional education beyond the agent level, as required by state law, and who has passed a broker’s exam. In some cases, brokers also have more years of experience than agents. The biggest difference between a broker and an agent is that a broker may work independently. An agent must be overseen by a broker.
How Do You Find Your REALTOR®?
With 1.5 million REALTORS® nationwide and over 28,000 in Maryland, there are plenty to choose from. But it is important that you choose one that is right for you. Here are some things to consider:
Expertise
Does this REALTOR® know the market, your area, and current pricing trends?
Designations
These are for REALTORS® who have specialized expertise in certain types of clients or transactions. Does one of those fit your situation?
Recommendations
Did someone you know, like a friend, family member or coworker, have a good experience with their REALTOR®? Would that REALTOR’s® clients choose to work with them again?
Compatibility
Do you see yourself working well with this person? If your personalities conflict, or if you have differing communications styles, even the best agent may not be the one that works best for you.
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Nationwide Real Estate Designations and Certifications
Designations and certifications acknowledging experience and expertise in various real estate sectors are awarded by NAR and each affiliated group upon completion of required courses. You can search for a REALTOR® Member by location or designation.
- The Accredited Buyer’s Representative (ABR®) designation is designed for real estate buyer agents who focus on working directly with buyer-clients at every stage of the home buying process.
- Accredited Land Consultants (ALCs) are trusted, knowledgeable, and experienced experts in all segments of land sales.
- At Home With Diversity® (AHWD) designees work successfully with and within a rapidly changing multicultural real estate market.
- A Certified Commercial Investment Member (CCIM) is a recognized expert in the commercial and investment real estate industry.
- The Certified International Property Specialist (CIPS) designation is for REALTORS® from the United States and abroad wish to develop or grow their international real estate business.
- Certified Property Manager (CPM®) designees are recognized as experts in real estate management.
- The Certified Real Estate Brokerage Manager (CRB) is for experienced owners, brokers, managers, and supervisors who have expertise in brokerage management.
- The Certified Real Estate Team Specialist (C-RETS) certification provides the tools, strategies, and knowledge that are required real estate professionals who o perate as a team.
- Certified Residential Specialist (CRS) designation is the highest credential awarded by the Residential Real Estate Council to residential sales agents, managers, and brokers.
- Commitment to Excellence (C2EX) empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism.
- The Counselors of Real Estate® (CRE®) is an organization of commercial property experts worldwide who provide seasoned, objective advice on real property and land-related matters.
- NAR's e-PRO® certification program helps REALTORS® master the advanced digital marketing techniques of today.
- Graduate, REALTOR® Institute (GRI) designees have in-depth training in legal and regulatory issues, technology, professional standards, and the sales process.
- The Green Designation (GREEN) is awarded to real estate practitioners who find, understand, and market properties with green features.
- Luxury Homes Certification (LHC) is for agents who have knowledge of pricing and negotiation strategies in the ever-growing luxury home market.
- The Military Relocation Professional (MRP) REALTORS® work with U.S. service members and their families and veterans to find the housing solutions that best suit their needs and to take full advantage of available benefits and support.
- Performance Management Network (PMN) REALTORS® have practical skills in business leadership, negotiation, networking, and planning.
- The Pricing Strategy Advisor (PSA) certification designates skills in pricing properties, working with appraisers, and helping clients determine home values.
- The Real Estate Investing (REI) certification program is for REALTORS® who work with investors and provide insight into 1031 exchanges and REITS.
- The Real Estate Negotiation Expert (RENE) certification is for real estate professionals with developed negotiation and client advocacy skills.
- The Resort and Second-Home Property Specialist (RSPS) certification is for REALTORS® who specialize in buying, selling, or management of properties for investment, development, retirement, or second homes in resort, recreational, and/or vacation destinations.
- The RRC Digital Marketing: Social Media certification is for real estate professionals who have developed expertise with social media resources.
- The Seller Representative Specialist (SRS) designation is awarded to real estate professionals who demonstrate the knowledge and skills essential for seller advocacy.
- The Seniors Real Estate Specialist® (SRES®) designation is for REALTORS® who meet the special needs of maturing Americans when selling, buying, relocating, or refinancing residential or investment properties.
- The Short Sales and Foreclosure Resource (SFR®) certification is for REALTORS® who help buyers and sellers of distressed properties.
- The Smart Home certification is for real estate professionals who have expertise in the technology, privacy issues, and best transition tactics involved in selling smart homes.
- Society of Industrial and Office REALTORS® (SIOR) designees are commercial specialists in industrial and office markets.
Questions to Ask When Choosing a Realtor
You should always interview several REALTORS® before starting the homebuying or selling process. Our Buyer and Seller Toolkits have a list of questions that you can use during those interviews so you can find the right fit.
How long have you been in residential real estate sales? Is it your full-time job?
Like most professions, experience is no guarantee of skill, but much of real estate is learned on the job and through current knowledge of the local market.
What designations or certifications do you hold?
Designations and certifications help define the special skills an agent can apply to your real estate needs. These include specialists for residential sales, buyer representation, relocations, military customers, and seniors, among others.
How many buyers did you represent last year? How many offers to purchase did you have accepted?
The tactics used to represent a buyer can differ from those used to represent a seller, particularly in markets that favor one side or the other. You want to get a sense that your agent knows the buyer’s side of the market.
How many of them were first-time homebuyers? VA?
If you’re a first-time homebuyer, using a VA loan, or any other special situation, finding an agent that has experience, or even a specialty, in working with clients like you can be a big relief. Agents that have experience with clients like you can help provide specialized tips and key information, like homeowner programs, which could help you save money and more.
What's the average variation between your initial offer and accepted sales price?
This is one indication of a REALTOR®’s purchase offer strategy recommendations and selling skills.
What is the significance of the buyer brokerage agreement?
The Buyer Brokerage Agreement is required by Maryland law to be signed before any REALTOR® can begin work on finding you a home. It explains the duties of your agent to you as your representative. It helps to set expectations for both parties and lets you trust your agent will be working in your best interest. Your agent agrees to represent you in the home-buying process, and you agree to work with this agent exclusively, protecting both you and the REALTOR®.
Signing this agreement is also when you and your REALTOR®’s Broker would negotiate payment. The REALTOR® will answer questions you might have about how REALTORS® get paid and have a conversation about the possibility of seller-provided compensation.
How are you paid?
REALTORS® get paid from an agreed-upon percentage of the sales price of the home purchased, a flat rate, or a combination of both. REALTORS® don’t get paid until settlement, but what payment they would receive is determined before they perform any work for you. Commissions are always negotiable.
You, the buyer, are responsible for paying the REALTOR® at the time of closing. Sometimes the Listing Broker and/or the seller will offer to cover the Buyer Agent’s commission as part of the listing for the home, or as negotiated in the contract of sale. If this is the case, you are only responsible for paying any difference between the agreed-upon commission and what your broker receives from those other sources. Your REALTOR® cannot make more than the agreed-upon commission.
Before you view a home for sale, your REALTOR® will let you know whether the Listing Broker is offering compensation or if the seller will entertain a request by you to compensate your Broker.
When does our relationship begin? When will it end?
The Buyer Brokerage Agreement start and end dates are established by you and the REALTOR® at the time of signing.
Will you represent me exclusively? What happens if I want to make an offer on one of your brokerage's listings?
In Maryland, it is illegal for one agent to represent both parties in a transaction. However, your agent’s broker may be listing a property you’re interested in. In this situation, a different agent from that company will represent the seller. This is explained in the state form entitled “Understanding Whom Real Estate Agents Represent.” If you have not received this form from your REALTOR®, ask for it.
What if I choose not to use a buyer agent? I'm not required to do so.
You are not required to hire a Buyer Agent, but if you chose to use one, you will have experienced representation to look out for your interests, consult with you on negotiation strategy, or help navigate the complex transaction. When considering whether to use an agent, remember the value a REALTOR® provides, from detailed knowledge of the industry, common pitfalls, and local markets, to recommendations of professionals to help with every facet, from home inspections to lenders. The excitement and stress of finding a new home can create high tension and emotions, so having a REALTOR® to support and advise you can be invaluable.
Can you recommend service providers who can help me obtain a mortgage, make home repairs, and so on?
Your REALTOR® should be able to recommend more than one provider and tell you if they have a special relationship with any of them.
How will you keep me informed about the progress of my transaction?
The best answer here is a question. A real estate agent who pays attention to the way you prefer to communicate and responds accordingly will ask you how to best keep in touch with you, which will make for the smoothest transaction.
Could you please give me the contact information of your three most recent clients?
Many agents have repeat clients or gain new ones by referrals. Ask their former clients if they would use the agent again in the future.