What is a REALTOR® and why is the designation important? Real estate agents are people who have completed the necessary classroom training as defined by their state and who have passed the state licensing exam.
A REALTOR® is a real estate agent who is also a member of the National Association of REALTORS® (NAR). If a real estate agent is a member of a local real estate board or the broker who sponsors the agent is a member of the local board, the agent is also a REALTOR®. So what’s the difference?
All REALTORS® are real estate agents, but not all agents are REALTORS®. Belonging to the local board of REALTORS® or NAR means that the agent has agreed to abide by a Code of Ethics. It a client has an issue with an agent, the client takes it up with the appropriate state governing body. Anyone having issues with a REALTORS® can go to the local board or the NAR.
Local boards, such as the Austin Board of REALTORS® (ABoR) take things very seriously. They have strict standards for conduct and for how certain things should be done by board members. For example, ABoR has strict guidelines about how their members enter home listings into the board’s database, often called the MLS. There are standards for accuracy of information, defining what can be called a bedroom (as opposed to a study), when photos must be posted and more. Agents who enter inaccurate information or who do not post photos can face fines from ABoR.
Real estate agents who are not members of the local board do not have access to the same information that REALTORS® have access to. For example, if you are working with a Buyer’s Agent who is an agent, but not a REALTORS®, the agent will not have access to information for sold properties. REALTORS® use information on sold properties to place a value on similar properties. This is necessary in determining a fair and reasonable offer when one is buying a home.
This isn’t to say that a real estate agent can not be as competent as a REALTORS®. Agents can be very good at what they do. However, it can be said that REALTORS® can be held to higher standards than agents. It can also be said that REALTORS® have access to more information than real estate agents do.
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