What is the REALTOR® Difference?

Elevate Your Professional Standing by Sharing What Sets REALTORS® Apart.

It’s common for confusion to arise regarding the terms “Real Estate Agent,” “Real Estate Broker,” and “REALTORS®.” According to the National Association of REALTORS® (NAR), “Real Estate Agent” is a blanket term used to describe the different types of professionals who buy and sell real estate: agents, brokers, and REALTORS®. Despite operating within the same industry, their backgrounds diverge significantly. As a dedicated licensed REALTOR® who has diligently earned this distinction, do your clients grasp the difference and value your commitment?

For clarification, a real estate agent is a licensed professional whose work is to help clients buy, sell, rent, or invest in housing. To become an agent, individuals must undergo pre-licensing training from a certified organization and pass their state’s real estate licensing exam. Once licensed, an agent must become affiliated with a real estate brokerage. Adding to the complexity, in some states, real estate agents’ official titles are “real estate brokers,” so the Agent/Broker titles differ by state. Educating out-of-state clients is especially vital.

REALTOR® DIFFERENCE: EDUCATE YOUR CLIENTS

So, where do REALTORS® fit into the equation? A REALTOR® is a member of NAR who are bound by a strict Code of Ethics which is intended to protect buyers and sellers. By choosing a REALTOR®, clients benefit from the combination of ethical standards, expertise, and education that these professionals bring to the table. As a REALTOR®, it’s essential to communicate with clients the full extent of what being a REALTOR® entails:

• Code of Ethics: REALTORS® adhere to a strict Code of Ethics enforced by NAR. This code outlines the professional standards and conduct expected of REALTORS® when representing clients in real estate transactions. It emphasizes integrity, honesty, and a commitment to serving clients’ best interests.
• Expertise: REALTORS® typically possess a high level of expertise in the real estate industry. Through ongoing education and experience, they stay updated on market trends, legal regulations, and best practices.
• Education: Many REALTORS® invest in continuous education and training to enhance their skills and knowledge. This commitment to education ensures that they are equipped to handle various challenges and complexities that may arise during real estate transactions.

“Over my 46 years working in real estate, I’ve watched how this job has changed and developed,” said David Clapp, Managing Broker and Director of Education with RE/MAX Alliance Group. “But what has not changed is the need for professionalism in anyone who calls themselves a REALTOR®. Anyone who is a REALTOR® is a real estate professional who has agreed to work according to the NAR Code of Ethics. This is a much higher standard of business practice that must be met compared to a non-REALTOR®.”

“THAT’S WHO WE R”

For these reasons and more, the REALTOR® designation epitomizes both professionalism and trust. Informed clients often seek out REALTORS® specifically for the assurance that comes with knowing that they are working with a dedicated professional who is seeking their best interests.

In order to better inform the public of what exactly sets REALTORS® apart, NAR launched the “That’s Who We R” advertising campaign in 2019, which demonstrates not only a REALTOR'S® value in the transaction but also a REALTOR'S® role as stewards of our community and our profession. The ‘R’, of course, stands for the word “REALTOR®,” – an identifier that consumers should look for in an agent—an ethical commitment, an active community member, and a person who’ll advocate for them. The campaign focuses on the consumer experience, with the REALTOR® in the middle of the transaction, and it encourages consumers to take a first-hand look at real estate professionals who are REALTORS®. For more information and to link this valuable content to your social media, visit nar.realtor/thats-who-we-r.

PROMOTING VALUE AMID CHALLENGES

As a REALTOR®, demonstrating your value to clients is essential for building trust, securing their business, and ultimately, helping them achieve their real estate goals while in turn, receiving a well-earned and agreed-upon commission. However, in light of the Sitzer-Burnett class-action lawsuit and subsequent settlement, now more than ever, it’s essential to prove your worth as a REALTOR® to your clients – your expert time and experience is valuable.

However, what happens when a REALTOR® runs into a negative response from a client? NAR has some great tips for REALTORS® to convey to clients regarding the litigation, and setting expectations as to purposed commissions earned.

• If clients ask questions about the litigation and the verdict, be transparent. Reiterate that REALTORS® will always be there to guide them through the complexities of buying and selling, to protect them, and to promote their best interests.
• Clearly explain to consumers the choices they have when it comes to representation and articulate your value and expertise.
• Continue expressing to clients, friends, and family that compensation is negotiable and set between brokers and their clients.
• Continue using signed listing, and buyer agreements to help clients understand exactly what services and value you are providing, how much your professional services cost, and how you will be paid.

We’re encountering a dynamic and demanding era in the real estate industry, where REALTORS® must underscore their value like never before. It’s imperative that we deliver more in this ever-evolving landscape, rise above the challenges, and avoid negativity.

“Change is inevitable, and it often leads to positive outcomes,” said Tony Barrett, 2024 RASM President. “We’ve listened to our clients’ feedback, prompting us to adapt how we communicate compensation details to them. After all, an informed client is a satisfied one. By embracing change, we reinforce the REALTOR® Difference – our unwavering dedication to professionalism and service excellence. Together, we’ll shape a real estate industry that prioritizes client needs, driving positive outcomes and lasting relationships.”

To help REALTORS® with questions regarding the proposed settlement, NAR has created an updated fact sheet located at facts.realtor. In addition, in response to any inaccurate reporting suggesting that NAR rules set commissions, NAR has released a media statement that can be shared, located here

MARKET YOURSELF AS A REALTOR® PROFESSIONAL

The importance of professionalism in real estate cannot be overstated, as it plays a crucial role in shaping client experiences, maintaining trust, and upholding the integrity of the industry. Our conduct in public and on social media matters.

“When we are working with buyers and sellers, we are professionals representing our industry, our brokerage, our office, and ourselves, and that’s a lot of pressure!” said Matthew Day, Managing Broker, with Coldwell Banker Realty. “But with education and preparation, it can be easy. The better informed and educated we are, the more capable we are of communicating market information, contract details, and transaction challenges. Whether a new agent or an experienced agent, it’s critical that an agent has the support of their brokerage and their local association to be confident they are managing their business properly. Our customers deserve the best from us, and if an agent takes advantage of training, workshops, sessions, or classes taught by their brokerage or their association, it gives them a sense of empowerment to be honest and truthful in their dealings with customers. People will see you as a professional. Success will follow.”

PROFESSIONAL REMINDERS

• Do Your Homework: Make certain you are prepared with in-depth knowledge of the local real estate market, including current trends, pricing dynamics, and neighborhood amenities. Provide insights into market conditions and help clients make informed decisions based on your expertise.
• Effective Communication: Maintain open and transparent communication with clients, keeping them informed at every stage of the transaction. Respond promptly to inquiries and provide regular updates.
• Marketing Strategies: Utilize innovative and targeted marketing strategies and leverage digital platforms, professional photography, virtual tours, and other marketing tools to maximize exposure and generate interest in your listings.
• Ethical Standards: Prioritize clients’ best interests and maintain integrity and honesty in your interactions.
• Embrace Change: Realize that the same way of doing things might need to change. REALTORS® need to step up their game and their professionalism in all areas in our changing landscape.
• Maintain Education: Make continuous education a priority to ensure you maintain your expertise, professionalism, and ability to provide clients with the highest level of service.

“Today, more than ever, a REALTOR® needs to demonstrate their value, showing what sets them apart from every other agent in the industry,” added Clapp. “What you say (which includes what you post on social media), how you act, and what you do, must all match up with the highest standards of professionalism or you will not survive in this business for the future. REALTORS® must always reflect professionalism in their business practice, as well as their personal lives. How an agent treats their customers and fellow REALTORS® is a reflection on the industry as a whole. Failure to return calls, failure to be honest and truthful, failure to show up on time, failure to present all offers fairly, failure to treat all people equally without bias - all of these things are negative reflections on our business and should never be said of any REALTOR®.”

MORE THAN JUST A TITLE

The REALTOR® Difference is not merely a title, but a commitment to professionalism, integrity, and excellence in service. REALTORS® distinguish themselves as trustworthy advocates for their clients, dedicated to achieving the best possible outcomes. Whether navigating complex transactions or guiding clients through challenging decisions, REALTORS® uphold the highest standards of professionalism, ensuring that every client receives exceptional service and support, and in a dynamic and competitive industry, professionalism remains the cornerstone of the REALTOR® Difference.

“It’s time that we, as REALTORS®, raise the bar on who we are and how we conduct our business. Sometimes it’s just a matter of following the Golden Rule of treating others as you would like to be treated,” added Clapp.