Realtor vs. Real Estate Agent: What’s the Difference?

A career in real estate can be rewarding and lucrative. Not only do you have an opportunity to help people buy and sell one of their most valuable assets, but you can also earn an above-average salary in the process. According to Lightcast™, the average salary for real estate sales agents is $99,178 per year [1].

Real estate agents and Realtors work in the same industry, but not all real estate agents are Realtors. Understanding the difference between these two terms can help you plan your real estate career. Read on to explore the Realtor versus real estate agent question and learn more about these titles.

What is a real estate agent?

Real estate agents have professional licenses to help clients buy, sell, and rent properties. To qualify for a license, you must take courses and pass a state licensing exam. After successfully completing these requirements, you can begin working as a real estate agent under the supervision of a broker. 

As a real estate agent, you will act as a listing or buyer's agent, depending on whether you represent the seller or buyer. In either case, your job is to ensure that your clients are aware of the requirements to sell or purchase a property, and you may assist them with steps in the process, including staging the home or arranging home inspections. The core responsibilities of a real estate agent may include the following:

• Taking potential buyers to see properties

• Comparing multiple properties

• Negotiating contracts between buyers and sellers

• Drafting documents for and promoting properties

What is a Realtor?

A realtor is a real estate agent who joins the National Association of Realtors (NAR), an organization dedicated to building expertise and practice in real estate. Founded in 1908, the professional organization offers industry certifications for members. It educates the public about the value of working with one of its members—all of whom agree to follow a code of ethics.

Realtor vs. real estate agent vs. broker

A broker is another real estate professional who can work independently or oversee a team of sales agents. To become a broker, you take additional classes beyond what you need to earn a sales agent license. You must also pass a broker licensing exam in the state where you want to work. Typically, you need some work experience as a sales agent before you can start working on the additional education required for the broker license. As a broker, you can join the NAR if you want to use the Realtor designation.

How to become a real estate sales agent

To become a real estate professional, you must be at least 18 years old, hold a high school diploma, and pass a background check. In all states, you have to take classes to qualify for and maintain your real estate license. Specific details—the number of hours and content covered—can vary from state to state, so check with your state's real estate licensing board before signing up for a course.

1. Complete approved prelicensing courses.

Before you take the licensing exam, you have to complete a prelicensing course approved by the state agency overseeing real estate agents. In some states, you must take college-level classes to meet this requirement. Prelicensing courses typically cover the following topics:

• Contracts

• Laws and regulations

• Mortgage loans

• Real estate appraisal

• Real estate finance

• Taxes

2. Pass the state licensing exam.

The licensing exam assesses your knowledge of the topics covered in the prelicensing course. Although the questions on the exam are specific to the state, you'll notice some similarities. Typically, the exam will ask you about the role of the real estate professional in selling and managing property, professional responsibilities, real estate law, and the work of the agency overseeing real estate sales agents and brokers.

3. Apply for a license.

After you pass the license exam, you can apply for a professional license through the agency that oversees real estate professionals. Many states have online portals where you can complete the license application and submit supplementary material, including your sponsoring broker's information. Other states still accept applications through regular mail. 

4. Take continuing education courses.

Real estate agents must take continuing education classes to renew their licenses. These courses usually cover state real estate law and ethical business practices and are designed to help you keep up with current information. Your state may require you to take specific post-licensing courses during your first renewal period.

How to become a Realtor

To become a Realtor, you must first meet the requirements to become a licensed real estate sales agent in your state. After receiving your professional license, find and join the local NAR association. When you pay your annual dues, you officially become a member of the NAR and can use the Realtor title.

Skills of a successful real estate professional

As a real estate professional, you spend time interacting with clients, researching properties, and negotiating with agents and other professionals. For this reason, successful agents typically have strong interpersonal skills. You also may rely on a combination of the following skills:

• Business

• Communication

• Negotiation

• Problem-solving

• Technology

Real estate agent and Realtor salaries and job outlook 

The US Bureau of Labor Statistics reports a median wage of $54,300 for real estate sales agents [2]. It notes the highest-paid agents earn more than $119,590, while the salary of the lowest 10 percent is less than $32,000 [2]. According to Glassdoor, real estate sales agents earn around $138,002 annually [3]. Sales agents just starting their careers earn around $65,979 per year, with the average salary peaking at $95,992 for agents with between seven and nine years of experience [3]. The median salary for a Realtor is $113,190, according to Glassdoor [4].

Real estate sales agents usually work on commission and don't get paid until the transaction closes. This is why where you work plays such a significant role in your salary. In 2024, the median listing price in New York City was $800,000 and $190,000 in Birmingham, Alabama [5,6]. If you're working in New York City, you can potentially earn more money per property than you would in Birmingham. Demand for real estate sales agents is positive, growing about three percent through 2032 [2].

Getting started with Coursera

Whether you choose to call yourself a real estate agent or a Realtor, you have the chance to help people achieve their dreams of homeownership while also earning a competitive income. Developing skills like research and negotiation can help you stand out and directly affect your clients' success. On Coursera, you can take courses to hone the skills needed for a career in real estate. Consider Successful Negotiation: Essential Strategies and Skills from the University of Michigan to explore what it takes to plan a successful negotiation strategy and persuade others.