“Realtor” vs. “Real Estate Agent”: Definitions and History

You probably use “real estate agent” and “Realtor” interchangeably.

That is fine. Everybody knows what you are talking about.

But there is a difference. And in some cases, it can be a difference that matters….

Real Estate Agent vs. Realtor

Not all real estate agents are Realtors.

And not all Realtors are real estate agents.

• Real estate agent: someone who is a licensed real estate salesperson in his or her State per the rules of that State.
• Realtor: a member of the National Association of Realtors (NAR).

Real estate agents are not required to join NAR. Although most residential real estate agents do, many commercial real estate agents do not.

Why Do Real Estate Agents Become Realtors?

Usually, residential agents join NAR for MLS access.

NAR’s local associations – there are over 1000 in America – often own or control access to the local MLSs, short for multiple listing services, and make joining NAR a condition of joining the MLS.

MLS is the central database where agents advertise their listings, and from which listings syndicate to sites like Zillow and Homes.com. MLS access is critical for most agents, so they join.

That is the major reason why there are no major real estate trade organizations that can compete with NAR, and why NAR enjoys insanely high industry participation for a trade association (estimated at over 65%) in comparison to other groups like the American Medical Association (less than 25% of doctors).

Because most real estate agents are Realtors, the two words have almost become synonymous. But a non-member of NAR cannot refer to themselves as a Realtor.

An exception are commercial real estate agents. Most commercial agents don’t do their primary business in the MLSs, and therefore don’t feel coerced into joining NAR. Many commercial brokers are not NAR members and not Realtors. They advertise their listings, if at all, directly on sites like Loopnet.

Types of Realtors

But I mentioned not all Realtors are real estate agents, either.

Other groups also join NAR as well as the local associations and MLSs. Appraisers are the most common. An appraiser member of NAR is also correctly referred to as a Realtor, even if they don’t have a real estate salesperson license.

Other real estate professionals may join NAR even if they don’t practice real estate, like coaches, lenders, and property managers.

Realtor Pronunciation

There are some Realtors who get very fussy if you pronounce Realtor wrong.

It is two syllables, not three.

“REEL-ter”.  Not “REAL-uh-TOR”.

I know, it’s actually pretty hard to say “Real-tor” in just two syllables. But as long as you’re trying and not deliberately adding any “uhs” in the middle, you’ll be okay and manage not to offend the delicate sensibilities of some agents.

NAR Realtor Trademark

In early 2018, NAR introduced an updated logo for the first time in decades. It was met with a swift backlash, with many agents upset that NAR had spent a reported $250,000 on the design. NAR subsequently dropped it, which managed to anger even more people that NAR had spent the money and not even used the logo.

The Realtor trademark can only be used by Realtors, of course. You’ll generally see it in email signatures and direct mail advertising for agents.

There are also numerous rules on how Realtors can use the trademark in their marketing. For example, they should not be using “realtor” in their domain or email URL.

Code of Ethics

One of the unique features of a Realtor versus a real estate agent is NAR’s Code of Ethics.

All real estate agents are bound to follow the laws and rules of their State’s real estate commission, as well as State and federal statutes.

NAR has additional rules as well as a Code of Ethics that members must follow or risk their membership in NAR (and often, subsequently, their local MLS).

In addition to the Code of Ethics, Realtors are bound to other practices. For example, even in States that theoretically allow it, Realtors are forbidden from discriminating against gender identity and sexual orientation in addition to the seven federally protected classes.

The History of Realtor.com

So what about Realtor.com?

NAR does not own Realtor.com, and has almost no connection with it. NAR signed away their rights to the word “Realtor” to Move.com, Rupert Murdoch’s company (Fox News, Dow Jones, Wall Street Journal, etc).

Realtor.com started in 1996 as a partnership between NAR and Homestore. Homestore was eventually acquired by Move, who, in 2013, took exclusive control of Realtor.com and buying off NAR’s seat at the board.

Realtor.com is still considered by many agents as the more “realtor-friendly” of the major portals (especially compared to the agent-despised Zillow), but it is functionally no different than Zillow, Homes.com, or any of the other online portals. Realtor.com has no extant connection to NAR.

The Future of NAR and Realtors

NAR has such a stranglehold on residential real estate agents that the value of the “Realtor” designation is almost nothing. So many real estate agents are Realtors that the public understandably confuse the two terms.

That might not always be the case though.

I believe that NAR should disentangle itself from MLSs, either by choice or by force.

Especially after the 2024 lawsuit settlement, it’s possible that new incentives for real estate agents will result in declining membership for NAR, and the proliferation of real estate agents who are not Realtors.

The result is that many current Realtors may choose to terminate their dues-paying membership, and consequently could not use the “Realtor” designation.

If this happened, participation in NAR could drop to reflect the membership market share of other trade associations like doctors and dentists – 20-30% of real estate agents might be “Realtors”.

It would mean a lot less money and power for NAR, the largest lobby group in the United States, but “Realtor” would actually mean something, instead of being almost synonymous with “real estate agent”.

Conclusion

As a buyer or seller, you’re almost surely working with a real-estate-agent-Realtor combo. But if you aren’t sure, feel free to ask your agent. They’ll be happy to answer any questions you have.

Updated March 19, 2024; Originally published April 22, 2019