Realtor vs. Real Estate Agent: What’s the Difference?

Key Takeaways

A career in real estate can be rewarding and lucrative. Real estate agents and Realtors work in the same industry, but not all real estate agents are Realtors. Understanding the difference between these two terms can help you plan your real estate career. Some important things to know are:

• Real estate agents hold professional licenses to assist clients in buying, selling, and renting properties.

• According to Lightcast, the average annual salary for real estate sales agents is $99,178 [1].

• A realtor is a real estate agent who joins the National Association of Realtors (NAR), an organization dedicated to building expertise and practice in real estate.

If you're ready to start your career in real estate, consider the Successful Negotiation: Essential Strategies and Skills course offered by the University of Michigan on Coursera. You'll learn to understand the negotiation strategies and skills necessary for success and use a negotiation analysis to prepare for negotiations. Read on to explore the Realtor versus real estate agent question and learn more about these titles.

What is a real estate agent?

Real estate agents hold professional licenses to assist clients in buying, selling, and renting properties. To qualify for a license, you must take courses and pass a state licensing exam. After completing these requirements, you can begin working as a real estate agent under the supervision of a broker. 

As a real estate agent, you will act as a listing or buyer's agent, depending on whether you represent the seller or buyer. In either case, your role is to ensure that your clients are aware of the requirements for selling or purchasing a property, and you may assist them with steps in the process, including staging the home or arranging home inspections. The core responsibilities of a real estate agent may include the following:

• Taking potential buyers to see properties

• Comparing multiple properties

• Negotiating contracts between buyers and sellers

• Drafting documents for and promoting properties

What is a Realtor?

A realtor is a real estate agent who joins the National Association of Realtors (NAR), an organization dedicated to building expertise and practice in real estate. Founded in 1908, the professional organization offers industry certifications for members. It educates the public about the value of working with one of its members—all of whom agree to follow a code of ethics.

Realtor vs. real estate agent vs. broker

A broker is another real estate professional who can work independently or oversee a team of sales agents. To become a broker, you take additional classes beyond what you need to earn a sales agent license. You must also pass a broker licensing exam in the state where you want to work. Typically, you need some work experience as a sales agent before you can start working on the additional education required for the broker license. As a broker, you can join the NAR if you want to use the Realtor designation.

How to become a real estate sales agent

To become a real estate professional, you must be at least 18 years old, hold a high school diploma, and pass a background check. In all states, you have to take classes to qualify for and maintain your real estate license. Specific details—the number of hours and content covered—can vary from state to state, so check with your state's real estate licensing board before signing up for a course.

1. Complete approved prelicensing courses.

Before you take the licensing exam, you have to complete a prelicensing course approved by the state agency overseeing real estate agents. In some states, you must take college-level classes to meet this requirement. Prelicensing courses typically cover the following topics:

• Contracts

• Laws and regulations

• Mortgage loans

• Real estate appraisal

• Real estate finance

• Taxes

2. Pass the state licensing exam.

The licensing exam assesses your knowledge of the topics covered in the prelicensing course. Although the questions on the exam are specific to the state, you'll notice some similarities. Typically, the exam will ask you about the role of the real estate professional in selling and managing property, professional responsibilities, real estate law, and the work of the agency overseeing real estate sales agents and brokers.

3. Apply for a license.

After you pass the license exam, you can apply for a professional license through the agency that oversees real estate professionals. Many states have online portals where you can complete the license application and submit supplementary material, including your sponsoring broker's information. Other states still accept applications through regular mail. 

4. Take continuing education courses.

Real estate agents are required to complete continuing education classes to renew their licenses. These courses typically cover state real estate law and ethical business practices, designed to help you stay current with the latest information. Your state may require you to take specific post-licensing courses during your first renewal period.

How to become a Realtor

To become a Realtor, you must first meet the requirements to become a licensed real estate sales agent in your state. After receiving your professional license, find and join the local NAR association. When you pay your annual dues, you officially become a member of the NAR and can use the Realtor title.

Skills of a successful real estate professional

As a real estate professional, you spend time interacting with clients, researching properties, and negotiating with agents and other professionals. For this reason, successful agents typically have strong interpersonal skills. You also may rely on a combination of the following skills:

• Business

• Communication

• Negotiation

• Problem-solving

• Technology

Real estate agent and Realtor salaries and job outlook 

The US Bureau of Labor Statistics reports a median wage of $54,300 for real estate sales agents [2]. It notes the highest-paid agents earn more than $119,590, while the salary of the lowest 10 percent is less than $32,000 [2]. According to Glassdoor, real estate sales agents earn approximately $138,002 per year [3]. Sales agents just starting their careers earn around $65,979 per year, with the average salary peaking at $95,992 for agents with between seven and nine years of experience [3]. The median salary for a Realtor is $113,190, according to Glassdoor [4].

Real estate sales agents usually work on commission and don't get paid until the transaction closes. This is why where you work plays such a significant role in your salary. In 2024, the median listing price in New York City was $800,000 and $190,000 in Birmingham, Alabama [5,6]. If you're working in New York City, you can potentially earn more money per property than you would in Birmingham. Demand for real estate sales agents is positive, growing about three percent through 2032 [2].

Learn more with our free resources.

Exploring a career as a real estate agent? Stay updated on the latest career trends with our LinkedIn newsletter, Career Chat! Or, browse our other free resources:

• Watch on YouTube: Must-Have Skills Every Aspiring Real Estate Agent Needs or 10 Skills That Make the Best Real Estate Agents

• Take a course: The Principles of Real Estate offered by Keller Williams

• Go through a guided project: Deep Learning for Real Estate Price Prediction

Accelerate your career growth with a Coursera Plus subscription. When you enroll in either the monthly or annual option, you’ll get access to over 10,000 courses.

Build job-ready skills with Coursera Plus

Start 7-day free trial

• 
• 
• 
• 

Start 7-day free trial