What is a REALTOR®?
During the homebuying process, you may see the word REALTOR® used. But do you know the difference between a real estate agent and a REALTOR®?
A member in good standing
The term “real estate agent” is used to describe any professional with a license to buy, sell or rent real estate. A REALTOR®, on the other hand, is a licensed professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics, standards and practices related to real estate transactions.
You may also see special labels after some agents’ names, such as CRS or GRI. The Certified Residential Specialist (CRS) designation is the highest credential awarded to residential sales agents, managers and brokers. The Graduate Realtor Institute (GRI) designation indicates that the REALTOR® has gained in-depth knowledge on the fundamentals of real estate and related technical subjects.
Types of agents
There are several different types of real estate agents.
- A seller’s agent – or listing agent – represents the seller, assists with setting the sales price, markets the property for sale and helps with negotiations.
- A buyer’s agent represents the buyer, locates potential properties, assists with negotiations and protects the buyer’s interests.
- A dual agent represents both the buyer and the seller in the same transaction.
Designated representation is a situation in which the buyer and the seller are using the same broker but are represented by different agents in the same firm.
The role of the broker
All agents, regardless of their designation, work for a broker who owns the real estate agency. This person is ultimately responsible for all transactions. The broker’s function – as well as the agent’s – is to help you with the transaction regardless of whether you’re buying or selling.