Who Makes More, a Real Estate Agent or a REALTOR? Explained

Who Earns More: A Real Estate Agent or a REALTOR®?

When diving into the world of real estate careers, a common question often arises: Who makes more, a real estate agent or a REALTOR? While the two terms are sometimes used interchangeably, they actually represent distinct roles within the industry, each with its own earning potential and professional expectations.

Understanding the Difference: Real Estate Agent vs REALTOR®

At first glance, the roles of a real estate agent and a REALTOR® might seem identical, but the distinction lies in membership and ethical commitment. A real estate agent is a licensed professional authorized to help clients buy, sell, or rent properties. However, a REALTOR® is a real estate agent who is also a member of the National Association of REALTORS® (NAR). This membership binds REALTORS® to a strict code of ethics and professional standards that go beyond state licensing requirements.

Because of this additional commitment, REALTORS® often have access to more resources, training, and networks that can enhance their ability to serve clients effectively, potentially impacting their earning capacity.

Earnings: Who Takes Home More?

When comparing the earnings of real estate agents and REALTORS®, several factors come into play, such as location, experience, brokerage affiliation, and market conditions. On average, REALTORS® tend to earn more than non-member real estate agents. This is largely due to their enhanced reputation, access to exclusive tools like the Multiple Listing Service (MLS), and higher client trust stemming from their adherence to NAR’s Code of Ethics.

According to data referenced in the article, the median annual income for a REALTOR® generally exceeds that of a typical real estate agent. While both roles primarily earn through commissions, REALTORS® may command higher commissions due to their professional standing and ability to close deals more efficiently.

Why REALTORS® Often Have an Edge

There are several reasons why REALTORS® often outperform their non-member counterparts:

• Access to Exclusive Listings: REALTORS® have entry to the MLS, providing them with the most comprehensive and up-to-date property listings, which can attract more clients and facilitate quicker sales.
• Professional Development: NAR offers continuous education and training, helping REALTORS® stay ahead of market trends and legal requirements.
• Networking Opportunities: Being part of a large professional community enhances collaboration, referrals, and mentorship opportunities.
• Ethical Standards: The adherence to a strict code of ethics builds client trust, which is a critical factor in securing business and earning repeat clients.

Factors That Influence Income Beyond Title

It’s important to remember that whether you’re a REALTOR® or a real estate agent, your income is not solely determined by your title. Key factors include:

• Experience and Skillset: Seasoned agents with strong negotiation skills often close more deals and at better prices.
• Market Conditions: Booming markets usually offer more opportunities for higher earnings, while slow markets can limit income.
• Geographical Location: Agents working in high-demand urban areas typically earn more than those in rural or less competitive markets.
• Brokerage Support: Agencies that provide robust marketing, training, and lead generation tools can help agents maximize their earnings.

Final Thoughts: Is Becoming a REALTOR® Worth It?

For those considering a career in real estate, joining the National Association of REALTORS® and becoming a REALTOR® can be a strategic move to boost credibility, access better resources, and potentially earn more. While the path to success depends on many variables, the professional benefits and earning potential associated with being a REALTOR® often outweigh the costs of membership.

In conclusion, while both real estate agents and REALTORS® are licensed to facilitate property transactions, REALTORS® generally have an edge in earnings due to their commitment to professionalism, ethical standards, and the tools available through their association. Whether you’re buying, selling, or simply curious about real estate careers, understanding these differences can help you make more informed decisions.