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Realtors (Ree-All-Tors) are real estate professionals who are members of the National Association of Realtors®, the largest trade group in the country. If an agent is not registered with NAR, they cannot use the designation, and must be referred to as a real estate agent or salesperson instead.
Why does that matter?
The National Association of Realtors® was formed in 1908 and was one of the first professional business associations to establish a Code of Ethics. Taking NAR’s lead, medical, engineering and law organizations followed suit.
The Code of Ethics is a living document that is updated nearly every year to keep current with the real estate business, and includes 17 Articles which prescribe industry codes and standards, company policies and practices, and individual values, and begins with a preamble that states:
“Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and our civilization. Realtors® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which Realtors® should dedicate themselves, and for which they should be diligent in preparing themselves. Realtors®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow Realtors® a common responsibility for its integrity and honor….”
In most states, anyone with a high school education and 60-150 hours of education may get a real estate license. (They should have a clean legal record as well, but I have been mortified to learn the agent on the other side was a felon.) Continuing education is required every couple of years to renew and maintain a license. That’s a pretty low bar, in my opinion, for someone negotiating and managing the purchase or sale of a person’s most valuable asset – their home. It’s not uncommon to hear real estate agents compared to used car salespeople, as the bad ones give us all a reason to cringe. I often say the hardest part of this job is the agent on the other side – when they aren’t educated or ethical it can prove to be a nightmare for everyone involved.
Realtors® are held to a higher ethical standard than real estate agents because they must adhere to the Realtor® Code of Ethics. In this sense, when home-buyers and -sellers hire a licensed real estate professional who is also a Realtor®, they may have added assurance that they will receive fair and exceptional service from beginning to end.
Today there are over 1.5 million Realtors®, making it America’s largest trade association. Of those, 200,000+ hold expertise designations and certifications on specific subject matters. For instance, I hold Graduate Realtor® Institute, Certified Negotiation Expert and Windermere Equestrian Advisor designations. And I have been a Realtor® since 2001.
If you would like more information on the National Association of Realtors® visit https://www.nar.realtor/
It is worth noting that there are currently several very significant lawsuits against NAR, NAR leadership, and various real estate firms around the nation. The leadership of NAR doesn’t represent the collective good of the organization, nor do they do any of us justice by exposing – let’s be honest – a really embarrassing lack of integrity. The industry is evolving and hopefully we move forward in a positive way. There is a lot to unpack, and this simply is not the place. Cheers.
