Realtor vs Real Estate Agent vs Broker (2025): Key Differences, Salary & How

Realtor vs real estate agent: they’re not the same. A Realtor is a licensed agent or broker who joins NAR and follows its Code of Ethics; an agent is simply state-licensed. Knowing the difference helps you choose the right representation and make sense of how today’s real-estate services are delivered.

The U.S. has more than 4 million active real-estate licensees, yet only ~1,453,690 are Realtors. That gap fuels the confusion—and it’s exactly why this guide breaks down who does what, how they’re paid, and when each professional is the best fit. Now, let's get into why you came here:

• What Is A Realtor?
• What Is A Real Estate Agent?
• What Is a Real Estate Broker?
• Realtor vs Real Estate Agent vs Broker – Detailed Comparison
• Commission Structures & Salary
• How To Become A Real Estate Agent
• Should A Real Estate Agent Become A Realtor?
• How Do You Become A Member Of NAR?
• Realtor Vs. Real Estate Agent: FAQs
• Final Thoughts

What Is A Realtor?

Plain-English definition: A Realtor is a real estate professional (agent or broker) who chooses to join the NAR, the industry’s largest trade group, and commit to its ethics rules. That means they meet state licensing requirements and an added set of professional standards.

NAR Membership Requirements

• Hold an active real estate license and actively practice real estate.
• Join a local Realtor® association (local, state, national tiers).
• Pay application and annual dues; remain in good standing.
• Complete initial and recurring ethics training; follow the Code of Ethics.

Code of Ethics

• Put clients first: loyalty, care, and honest advice.
• Tell the truth: accurate ads and communications; no puffery.
• Disclose conflicts: ownership interests and compensation sources.
• Treat everyone fairly: follow laws and nondiscrimination standards.
• Handle money & data properly: protect escrow funds and confidentiality. (Summary aligned with NAR’s Code of Ethics.)

Benefits of Being a Realtor

• Trust & standards: extra ethics rules can boost consumer confidence.
• Resources: education, market research, networking, and local-board MLS access, where applicable.

2025 Context: Membership & Commission Changes

The NAR hovered around 1.5 million members in 2024 (peaking near 1.55M early in the year). It dipped below 1.5M in early 2025, then stood at about 1.454M as of May 31, 2025—still above NAR’s own 2025 forecast. In short, the group is large and stable, with a modest downtrend from 2024’s highs. 

What changed after the 2024 settlement: On March 15, 2024, NAR reached a nationwide agreement that triggered industry-wide practice changes. The big one for everyday consumers: MLSs no longer display offers of compensation between brokers. Compensation can still be offered, but it’s negotiated off-MLS. In addition, if your agent uses an MLS, you’ll usually sign a written buyer-representation agreement before touring (in-person or live-virtual) so services and fees are clear up front. Most MLSs implemented the changes around August 17, 2024 (with some opt-in deadlines extending to mid-September). 

• For buyers: Expect a simple written agreement that spells out what your agent will do and how they’re paid before you start touring homes. Compensation is negotiated, not pre-posted on the MLS. 
• For sellers: You can still choose to offer a concession/credit or authorize compensation to a buyer’s agent—but it’s handled off-MLS and documented in your listing/offer paperwork. 
• For agents/brokers: Make compensation discussions explicit, use clear written agreements, and follow your MLS’s adopted policy updates tied to the settlement.

Bottom line — Realtor vs real estate agent: “Realtor” signals NAR membership and a binding Code of Ethics; “agent” means state-licensed representation. If you value added accountability, training, and member resources, hire a Realtor; if licensure and local market skill are what you need, a top agent can be the right fit. 

What Is A Real Estate Agent?

A real estate agent is a state-licensed professional who helps people buy, sell, or rent property. Agents typically work under the supervision of a licensed broker and guide clients through pricing, showings, offers, and closing.

Think of an agent as your day-to-day guide—researching homes, scheduling tours, explaining paperwork, negotiating terms, and keeping the deal on track from offer to closing.

Read Also: Pros and Cons of Being a Real Estate Agent

Licensing & Responsibilities

To become an agent, you must complete state-specific pre-licensing education, pass a licensing exam, and affiliate with a broker. Ongoing continuing education is required to keep the license active. (Exact steps and hours vary by state.)

• Market work: research comps, price properties, and prepare listing materials.
• Client service: schedule showings and open houses; answer buyer/seller questions.
• Negotiation: write and negotiate offers, counteroffers, and addenda.
• Coordination: line up inspections, appraisals, and escrow; track deadlines.
• Compliance & closing: manage disclosures and documents through settlement.

Ready to go deeper? See our step-by-step guide: How to Become a Real Estate Agent.

Read Also: How To Become A Commercial Real Estate Agent 

What Is a Real Estate Broker?

A broker does much of what an agent does (market properties, negotiate, manage paperwork) but has more authority. Brokers can run their own firm, hire and train agents, and often earn income from their own deals plus a portion of their agents’ commissions. Some brokers also choose to join NAR—when they do, they’re Realtors as well.

Broker Qualifications & Responsibilities (at a glance)

• Broker license: additional coursework and a separate state broker exam beyond the agent level.
• Independence: may work solo, open a brokerage, and set office policies.
• Supervision: can hire agents, train them, and oversee their transactions; top-level brokers ensure legal compliance across the office.
• Compensation: typically commissions from personal clients plus a cut of agents’ commissions within the firm.
• Realtor option: a broker may also be a Realtor by joining the National Association of Realtors (NAR).

Broker Tiers

• Associate Broker: holds a broker license but works under another broker; generally does not supervise agents.
• Managing Broker: oversees daily office operations, hires/trains agents, and manages transactions/admin staff.
• Principal/Designated Broker: the broker of record who supervises all licensees in the firm and ensures compliance with state and national real-estate laws.

Realtor vs Real Estate Agent vs Broker – Detailed Comparison

Use this side-by-side table to quickly see how licensing, independence, membership, ethics, commissions, and typical income differ across roles. Licensing hours vary by state (often ~30–120+). Brokers can operate independently and supervise agents, while “Realtor” means an agent or broker who joined NAR and follows its Code of Ethics. Since March 2024, MLS listings no longer show cooperative compensation offers; fees are negotiated off-MLS and spelled out in written agreements.

*Income varies by market, experience, volume, and compensation agreements.

Commission Structures & Salary

Real estate commissions are negotiable but commonly total ~5–6% of the sale price, historically split between the listing (seller’s) side and the buyer’s side (often 50/50). After the March 2024 settlement, MLSs no longer display offers of broker compensation; fees are negotiated off-MLS, and many buyers sign a written representation agreement before showings so services and compensation are clear.

• Common brokerage splits (agent ↔ brokerage): 50/50, 60/40, 70/30, 80/20; some firms use caps/tiers by production. Split policies vary by company and market.
• Who pays? Structures vary by deal; compensation can be paid by either party or via seller credits/concessions negotiated in the contract (off-MLS).

Notes: “Realtor” is a membership, not a separate license; income reflects member survey “gross income.” BLS figures are wages for occupational categories. Rates and splits vary by market, firm, and production.

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How To Become A Real Estate Agent

Becoming a real estate agent involves meeting specific requirements and completing the necessary steps to obtain a license. The specific process may vary depending on the state you're in. Still, here is a general guide on becoming a real estate agent:

• Research your state's age and education requirements: Begin by understanding the minimum age and educational qualifications needed to become a real estate agent in your state. These requirements can vary, so make sure you meet the criteria.
• Enroll in approved real estate education courses: Complete the required real estate education courses approved by your state. These courses are typically in-person or online and cover real estate principles, practices, laws, and ethics.
• Apply for the licensing exam: Once you've completed the required education, submit an application and any necessary paperwork to register for the final exam. This exam tests your knowledge of national, state, and local real estate laws, regulations, and practices.
• Take and pass the licensing exam: Prepare for the licensing exam by studying the material covered in the courses. The exam will assess your understanding of real estate principles and laws. Achieve a minimum passing score as determined by your state to pass the exam successfully.
• Gain experience under a licensed real estate broker associate: After passing the licensing exam, you'll need to work under the supervision of someone with a broker license. Years of experience will provide valuable knowledge and mentorship in the field. Find a designated broker to work with and learn from their expertise.
• Apply for your real estate license: Once you have fulfilled the experience requirement set by your state, you can apply for your real estate license. Submit the necessary documents and fees to your state's real estate regulatory authority. Upon approval, you will receive your official license to practice as a real estate agent.
• Continue education and renew certifications: Real estate agents must participate in continuing education courses to renew their licenses periodically. Stay current with real estate industry developments, laws, and regulations by completing the required continuing education credits. Renew your license within the specified timeframe and pay the necessary fees to maintain your licensed real estate agent status.

Remember to consult your state's specific guidelines and licensing board for accurate and detailed information on becoming a real estate agent in your area.

Read Also: Colibri Real Estate Review

Should A Real Estate Agent Become A Realtor?

When considering whether a real estate agent should become a Realtor, there are several factors to weigh. Here are the key points to consider:

• Ethical Standards: Realtors are committed to upholding a strict Code of Ethics established by the National Association of Realtors. This code sets higher standards for professional conduct and promotes integrity, honesty, and fairness in real estate transactions. By becoming a Realtor, agents signal their dedication to these ethical principles, which can enhance their reputation and credibility in the industry.
• Industry Perception: The Realtor designation carries a certain level of prestige and professionalism. Being recognized as a Realtor can convey more trustworthiness and expertise to clients and peers. This perception can impact an agent's business positively, leading to more opportunities and referrals.
• Access to Resources & Networking: Realtor membership grants access to a wide range of resources, educational opportunities, other real estate agents, and industry events provided by the NAR (beyond the Multiple Listing Service). These resources can help agents stay updated on market trends, best practices, and legal changes, enabling them to serve their clients better.
• Financial Considerations: It's crucial to weigh the financial aspects of becoming a Realtor. Membership in the NAR comes with annual dues, which can vary depending on the local association and market. Agents should evaluate the cost of membership and determine whether the benefits and resources provided by the NAR justify the financial investment.

Deciding to become a Realtor should be based on individual preferences, goals, and values. Assessing the potential benefits, costs, and alignment with ethical standards can help agents determine whether pursuing a Realtor membership is the right choice for their professional path.

Final take: If the Realtor vs real estate agent choice matters to your brand, becoming a Realtor can boost credibility, ethics, accountability, education, and networking. Factor in dues, time, and your market niche. If those benefits serve your clients and career plan, join; if not, excel as a licensed agent and revisit later.

Read Also: How To Get MLS Access: The (Ultimate) Guide

How Do You Become A Member Of NAR?

Becoming a National Association of Realtors member involves a specific process and particular requirements. Here are the essential steps to join the NAR:

• Join a local real estate association: To become a NAR member, aspiring Realtors must first join a local real estate association.
• Find a local chapter of the NAR: Begin by identifying and joining the local chapter in your state. These local associations are affiliated with the NAR and serve as the entry point for membership.
• Submit a membership application: Once you have selected a local association, complete the membership application provided by the association. The application may require personal information, proof of a valid real estate license, and details about your involvement in the real estate business.
• Pay membership dues: Membership in the NAR involves paying annual dues, which vary based on the local association and market. Upon approval of your membership application by the Board of Directors, you must pay the prorated membership dues.
• Adhere to the Code of Ethics: As a member of the NAR, you must adhere to the organization's Code of Ethics; this entails taking and passing an online course on the Code of Ethics, which outlines the ethical standards and professional conduct expected of Realtors. The pre-licensing course ensures that members are aware of their obligations and responsibilities.
• Practice ethical standards: Throughout your career as a Realtor, it is essential to adhere to the NAR's standards of practice and uphold the Code of Ethics; this includes conducting business with honesty, integrity, and professionalism.
• Continuing education: To maintain your Realtor membership, you may be required to engage in continuing education courses periodically. These courses help you stay updated on industry developments, enhance your skills, and demonstrate your commitment to ongoing professional growth.

By following these steps and meeting the requirements set by the NAR and your local association, you can become a National Association of Realtors member and enjoy the benefits and privileges of a Realtor membership.

Realtor Vs. Real Estate Agent: FAQs

Got questions about the difference between a Realtor, real estate agent, and broker? This FAQ gives quick answers. If you’re skimming for fast answers, start here.

What is the difference between a Realtor and a real estate agent?

A real estate agent is state-licensed to help people buy, sell, or rent property. A Realtor is an agent or broker who is a member of the National Association of Realtors (NAR) and must follow NAR’s Code of Ethics.

Is “Realtor” always capitalized?

Yes. Realtor is a NAR trademark; only NAR members may use it, and it should be capitalized.

What changed in the 2024 NAR commission settlement?

MLSs no longer display offers of broker compensation; compensation is negotiated off-MLS. Many MLSs implemented changes around Aug. 17, 2024, with an implementation window that extended into September for opt-ins. Written buyer-representation agreements are now standard before showings.

How many Realtors are there in 2025?

About 1.55 million in early 2024; membership dipped below 1.5 million in early 2025 and was reported at 1,453,690 as of May 31, 2025.

What is a real estate broker?

A broker holds advanced licensure beyond the agent level, can operate independently, open a brokerage, supervise agents, and is responsible for compliance. Brokers can also be Realtors if they join NAR.

Are real estate commissions negotiable?

Yes. Commission rates and who pays are negotiable between the parties. The 2024 settlement reinforces that fees are not set by the MLS and must be arranged off-MLS.

Do I need to become a Realtor to sell real estate?

No. You need a state real-estate license to practice as an agent; joining NAR to become a Realtor is optional.

Why join NAR?

Benefits can include ethics oversight, education, research, networking, consumer trust, and local-board MLS access where applicable.

Final Thoughts

Realtor vs real estate agent: A real estate agent is state-licensed to represent buyers and sellers; a Realtor is an agent or broker who joins the National Association of Realtors and agrees to the NAR Code of Ethics. Choose based on the service you need: licensing and local expertise (agent), added ethics and member resources (Realtor), or independence and office oversight.

If you’re hiring, interview two or three pros, confirm representation and compensation up front, and pick the fit that matches your goals. If you’re aspiring to work in real estate, start with our step-by-step guide How to Become a Real Estate Agent, consider NAR membership, then map your path to a broker license.

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.