Similar Is Not Identical in Real Estate
“What’s in a name?” asked the Bard. “That which we call a rose/by any other name would smell as sweet.”
Shakespeare and his star-crossed lovers notwithstanding,that’s exactly what a developer like Isaac Toussie feels when it comes to occupational titles: they matter. Accordingly, while anyone can claim to do bodywork in New York, massage therapists have to be licensed by the state in order to advertise themselves as such. But in the real estate industry, there are no such rules, aside from those already in place governing the likes of lawyers and accountants in general. And so, many neophytes and laymen are often confused by the difference between a realtor and a real estate agent, and often mix up the two, mistaking them to be one.
Unlike professionals such as Isaac Toussie, most people often use the two words interchangeably, but there is a rather important difference between the two – at least as far as realtors themselves feel about it! For that difference involves credentials, and a realtor is accredited – though not by the state.
Realtors are accredited as such by the National Association of Realtors, a professional industry association that espouses a strict code of conduct for its members and holds them to it. Moreover, realtors typically have more training and more experience in the real estate business than does many a real estate agent. Though both a realtor and a real estate agent will need to be licensed, the realtor is required to go the extra mile in obtaining a further level of expertise by the National Association of Realtors. In fact, the term “realtor” is an actual registered trademark.
But that’s the sole sure-cut difference, this matter of membership and what it suggests and is supposed to imply. Of course, there are a great many good real estate agents out there who do a great job every day serving their clients. But being a member of a professional association may give you, as the consumer, an additional venue if your experience should be much less than positive, one other than the usual governmental regulatory agencies.
Nevertheless, real estate agents are also bound by a certain number of expressly legal obligations, such as preserving confidentiality, honoring fiduciary duties, and reporting all financial numbers. So the differences may not mean much, even on paper. It’s true, realtors have a bit more training (or even a lot more, depending on your perspective), but you can also trust a real estate agent to help you sell or buy property.
No discussion of this topic, however simple, should be concluded without mentioning the prevalence of those non-licensed people who take it entirely on themselves to match buyers and sellers or, as is much more often the case, landlords and renters. These non-licensed people can usually be found online at sites like the famous Craig’s List, and they certainly make business enough to keep them posting their listings daily. And, especially when it comes to renting, people are loathe to deal with real estate agents and brokers. What then?
Well, as many a free market economist might say, there’s a buyer for every seller, which in our situation means that it all hinges on what is needed. One can understand how if you’re simply going to rent the second floor of someone’s house you might not need a realtor. But when it comes to buying that person’s house, a realtor is probably the way to go.