If you’ve decided to buy a home or sell the one you have, you also may be thinking about hiring someone to help things go as smoothly as possible.
A real estate professional can assess how much to list or bid on a home for, help with negotiations, hold your hand while you make important decisions, and help you understand the complicated paperwork.
The right agent can help you buy your dream home or sell the home you have now. The wrong agent might not focus on your needs or price your house incorrectly, leaving you angry or disappointed.
But how can you know who to hire when the pros often have different job experience or expertise and go by different job titles? Are all real estate agents also Realtors®? Is that the same thing as a sales associate? What’s the difference between a buyer’s agent and a listing agent? And what does a real estate broker do?
Table of Contents
- Key Points
- • Real estate agents, Realtors®, and brokers have distinct roles. Realtors adhere to a strict Code of Ethics from the National Association of Realtors (NAR), and brokers manage specific agents.
- • Choosing a real estate professional with experience, local knowledge, and personal service is crucial for a smooth transaction.
- • Listing agents represent sellers, while buyer’s agents assist house hunters. Each plays a vital role in the home buying and selling process.
- • REALTORS must follow NAR’s 17-article Code of Ethics, which establishes standards of professional conduct.
- • Real estate commissions are negotiable, and compensation varies by transaction.
What’s in a Name?
Though the terms Realtor and real estate agent are often used interchangeably, there are important differences you should know when it’s time to buy a house. Here’s a breakdown of the various titles real estate professionals use and what they mean:
Real estate agent: This is the most common term used for professionals who help clients buy and sell real estate. (Some firms may call their real estate agents sales associates or salespeople.) But a person can’t just slap their name on a business card and start selling homes.
A real estate agent must have a professional license to help residential or commercial clients buy, sell, or rent real estate. To get that license, aspiring agents must complete the required hours of prelicensing training and any written exams mandated by their state. There are also continuing education requirements for license renewal. States also have different age, education, and residency requirements, and some jurisdictions also require a background check.
Realtor: This term is trademarked by the National Association of Realtors (NAR), an American trade association involved in all aspects of residential and commercial real estate, and it should be used only to refer to that organization’s dues-paying members.
Members of the NAR are licensed professionals who are expected to adhere to a higher standard of practice, and they have their own strict Code of Ethics, which is made up of 17 articles meant to protect clients, the public, and other real estate agents. According to the NAR’s 2025 Member Profile, 64% of its members are licensed sales agents, 22% hold a broker license, and 16% hold a broker associate license.
If you’re looking at hiring a Realtor vs. an agent, one of the big perks of NAR membership is access to additional research, market data, and member resources.
Broker: Brokers are professionals who take their real estate education and licensing to the next level, and they often manage other agents. (Think of it like a school principal who still may teach but also has management responsibilities.)
Because of this elevated role, a broker’s prelicensing coursework usually dives deeper into complicated topics such as contracts, taxes, insurance, and other legal issues.
Real estate brokers can work as independent agents or have other agents working for them. In the latter situation, they typically receive a percentage of their agents’ commissions as payment for overseeing their transactions. Agents who pass the broker exam but choose to work under another broker may be referred to as associate brokers.
Listing agent: Some agents prefer to work only with sellers. Others work only with buyers. But many agents do both. Real estate agents who represent someone selling a home are called listing agents.
In that capacity, their duties may include pricing the home, suggesting improvements, marketing and holding open houses, coordinating showings with other agents, recommending renovations or offering staging tips, and negotiating with potential buyers.
Buyer’s agent: Agents who represent homebuyers are called buyer’s agents, and it’s their job to help their clients find potential homes to tour and show those homes, offer references for other professionals that may be needed (inspectors, mortgage brokers, etc.), negotiate house prices, and help their clients through the closing. Listing agents and buyer’s agents often earn a commission based on the home’s sale price. Commission rates are negotiable, and each agent often earns a 2.5% to 3% commission on a home’s sale price, though the amount varies by transaction.
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Recommended: How to Make an Offer on a House
Looking Beyond the Job Title
Besides understanding the credentials, duties, and level of education each real estate professional involved in your home sale or purchase may have, here are some other factors to consider when finding a real estate agent:
• Do you want to work with a team or an individual? With a team, you’ll have multiple agents looking out for you, and there might always be somebody to sub in if your agent is unavailable for a showing or to answer a question. With an individual agent, you’ll have just one person to go to for all your needs, but you’ll get to know that agent, and they’ll get to know you. That personalized approach might be helpful during what could be a stressful process.
• How much experience does your potential agent have? Not that there’s anything wrong with a sharp, gung-ho newbie, but given that your home purchase may be the biggest financial transaction of your life, it’s important to get it right. A seasoned agent can draw from past experiences when negotiating and problem-solving. You can also ask if the agent considers real estate a full- or part-time job. If this is a major purchase for you, you may want to know that you have the person’s full focus.
• How familiar is the real estate agent with your current neighborhood (if you’re selling) and desired neighborhood (if you’re buying)? Knowledge of the area can be a plus when you’re looking at “comps” or “comparables” to determine the fair value of a home. Your agent should also be able to help if you need information about schools or crime. Of course, anyone can look up this information, but an agent’s insider knowledge (school zones that might slow your commute or a big new development planned nearby but not yet constructed) may give you an edge in decision-making.
• Where did you hear about the professional you’re considering? The agent with the biggest advertising budget may or may not be the right person for you. If you have family and friends in the area, they might be able to help with recommendations. (Don’t just ask who they used — ask if they’d use that person again.) Plan on interviewing your top prospects, ideally in person, to be sure communication is easy.
Recommended: First-Time Homebuyer Guide
The Takeaway
Finding a qualified, experienced real estate professional to work with is a major step in the home buying or selling process. The right person could help you with everything from figuring out how much house you may be able to qualify for to getting you into the home you want with as little financial and emotional pain as possible.
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FAQs
What is the difference between a REALTOR® and a real estate agent?
A real estate agent is licensed to help clients buy, sell, or rent property. A REALTOR® is a real estate professional who belongs to the National Association of REALTORS (NAR) and agrees to follow its Code of Ethics. Although many real estate agents are REALTORS, not every licensed real estate agent is a REALTOR.
Do I need a REALTOR® to buy a home?
No. You can work with any licensed real estate agent to buy a home. However, some buyers prefer working with a REALTOR® because NAR members agree to follow a professional Code of Ethics and may have access to additional tools, education, and resources.
What does a buyer’s agent do?
A buyer’s agent represents the homebuyer throughout the purchase process. They can help you search for homes, schedule property tours, negotiate with sellers, prepare offers, and guide you through inspections, financing, and closing.
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