Realtor Vs. Real Estate Agent: Who Can You Trust With Your Home?

Comparing real estate agents, Realtors, and brokers

The differences between real estate agents, Realtors, and brokers might seem subtle, but understanding them can help you select the right professional for your needs. Allen provides insights into three areas wherein homebuyers and sellers can better understand the comparisons of Realtor vs. real estate agent.

• Ethical standards: As Allen points out, the primary difference between a Realtor and a real estate agent lies in ethical obligations. He says, “So, really, the biggest difference just comes from the ethics side of it. I’d like to say it’s common sense, but sometimes it’s not so common. Just doing the right thing and looking out for your client’s best interest, regardless of the commission that’s involved.” This statement emphasizes the commitment Realtors make to the NAR’s Code of Ethics, which dictates that they always prioritize the client’s interests.
• Roles and responsibilities: Real estate agents focus on facilitating transactions, as Allen elaborates, “As a real estate agent, your job is to list properties, sell properties, connect buyers and sellers, and get to the closing table — open doors.” However, when discussing Realtors, he emphasizes a deeper responsibility: “Whereas when you’re a Realtor, you have to look into things a little bit more. We have to be their fiduciary, and we have to look at things [more critically]: Are they maximizing the profits on this property? Is this the best-case scenario for them?” Thus, Realtors don’t just facilitate transactions but also ensure that their clients make the most informed and profitable decisions.
• Transparency and disclosure: Finally, Realtors are held to a higher standard of transparency, such as when they have a personal stake in a property. Allen explains, “And even on the investment side, we have to look at that as well — making sure that we disclose that we have an interest in the property, that we’re going to buy it for ourselves. And we are going to buy it for profit.” In contrast, this level of disclosure may not be required from a regular real estate agent.

On the other hand, a broker stands out due to their ability to run their own business and manage complex transactions. They hold a broker’s license, which requires additional education and experience.

Choosing between a real estate agent, Realtor, or broker will ultimately depend on your specific needs and the level of expertise and service you require. To help you in this decision, let’s explore some key questions to ask when making your choice.

Questions to ask when choosing a real estate professional

The process of choosing a real estate professional can be daunting, but asking the right questions can help guide your decision. Below, we’ve organized questions into three categories: those suitable for any agent, those specifically for seller agents, and those for buyer agents.

Questions for either buyer or seller agents:

• Do you have a list of referrals?
• How long have you been an agent?
• Do you work full time or part time as an agent?
• How often and when are you available?
• How many clients are you currently representing?
• Will I be working with you individually or with a team?
• What’s your response time, and how often will you be in touch?
• How do your fees work?
• What professional contacts do you have?
• Has anything ever gone wrong in a deal, and how did you handle it?
• What’s the biggest challenge you think we’ll face?
• What kind of guarantees do I get?
• What haven’t I asked you that I need to know?

Questions to ask seller agents:

• Have you sold homes in this area and my price range before?
• How many homes have you sold in my neighborhood in the past year?
• How will you help me prepare my home to sell?
• What’s your marketing plan for a property like mine?
• What are the average days on market for your listings?
• What is your average list-to-sales price ratio?
• How many open houses will you do?

Questions to ask buyer Agents:

• How many homes do you help buyers purchase each year?
• How quickly can you arrange for me to view a home?
• Have you helped buyers find homes in my selected areas?
• How long do you usually work with buyers, from first viewing to closing?
• What’s happening in this area, and how could that impact home prices?
• Have you completed many foreclosure or short-sale transactions?
• How do you help buyers stand out?

By asking these specific questions, you can ensure you choose the right professional who will prioritize your interests, whether you are selling or buying.

“There are Realtors that are better than others,” says Allen. “I’d be lying to you if I said that every agent that I’ve ever encountered has been extremely ethical…”

Allen explains that asking the right questions will help you determine an agent’s commitment to ethical behavior and their ability to put your interests first. “So, as a Realtor, I’ll ask questions to the other agents… ‘Hey, realistically, what does your seller want for the property? What’s their bottom dollar?’ As a Realtor, they shouldn’t answer that question, but you’d be very surprised how many do.”

Allen also emphasizes the importance of discretion, a quality that can significantly impact negotiations: “And vice versa, like if I’m the listing agent and somebody asked me that [bottom dollar] question. I simply let them know that’s not something that I can disclose. I would say, ‘Have your buyer put in their best offer.’”

Your selection of a real estate professional is an important one, and asking the right questions can help ensure you’re making the most informed choice possible. Remember, the goal is to find a professional who will advocate for your best interests with integrity, discretion, and dedication.

Should I work with a Realtor or a real estate agent?

Deciding between a Realtor and a real estate agent ultimately comes down to identifying their level of negotiation skills, market understanding, and pricing strategies, which are integral to a successful home buying or selling experience.

Allen suggests focusing on practical outcomes rather than just professional titles: “I wouldn’t even necessarily have them ask, ‘Are you a part of the National Association of Realtors?’ I would ask, ‘Hey, when you list a property, what’s the average list-to-sales price?’ Because that’s gonna tell you a lot about the negotiation skills.”

“And if you’re a buyer, ask your agent, ‘Hey, on average, what’s the sales price compared to what your buyers get it for?’ And that’s gonna tell you a lot about the negotiation skills for the agent as well.”

Realtor vs. real estate agent: It’s not just a relationship

Allen concludes by sharing this perspective: “When it comes to real estate, relationships are big. Many people choose the agent or Realtor because of the relationship they have. When in reality, this is likely the largest purchase they’re ever going to make in their entire life. So you need somebody on your side that understands the market, how negotiations work, how contracts are written, and really how to help your family because, at the end of the day, that’s what it’s about — and that you’re getting the best deal you possibly can.”

Whether you’re buying or selling a home, HomeLight can connect you with a top-performing, trusted agent (or Realtor) in your market. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

Header Image Source: Chloe Chiang & Clay Elliot (ccchiang & ibidsy / Unsplash)