We live in a “fast-food age.” Everybody wants to satisfy their appetite fast without the least effort and energy. This presumption applies to gaining access to information to make decisions in the blink of an eye. In the era of high-speed Internet, we’ve been blessed with this advantage. Browsing the web, we can look up essential information, opinions, statistics, and even predictions relevant to our decision-making, for instance, when buying or selling a home. Still, we must take the data online with a pinch of salt. Many question whether we still need human, flesh-and-blood agents in this “hyper-efficient” digital world. This article argues for the necessity of hiring a real estate agent vs realtor, which is quintessential in making an informed decision.
So join us as we reveal some of the reasons and benefits of hiring a real estate agent. Furthermore, we will pay attention to the reasons to hire a realtor. Still, first, we must distinguish the difference between a real estate agent vs realtor.
Table of contents:
- Untying the perplexing knot: real estate agent vs realtor
- What are the advantages of hiring a real estate agent and a realtor?
- Real estate professionals have already obtained reliable and comprehensive market knowledge.
- Enjoy the benefits of extensive networking with realtors!
- More timely and accurate access to vital housing information
- Agents and realtors have excellent negotiation skills.
- Real estate commissions: how much do real estate agents and realtors charge?
- What are the cons of hiring a realtor or an agent?
Untying the perplexing knot: real estate agent vs realtor
There’s still a general confusion surrounding a professional local real estate agent vs realtor and whom to employ for your next real estate transaction. In advance, you must know that these two terms are unique! Spoiler alert! Every realtor is a real estate agent, but not every agent is a realtor.
One thing is sure. These two of the best-paying professions in real estate require education, training, skill acquisition, dedicated and meticulous fieldwork, and hard-earned experience. Obtaining a license and working as an agent or realtor don’t come easy. If you decide to work with either of them, your interest will most assuredly be adequately represented.
What does it take to become a real estate agent?
We call a real estate agent a licensed individual representing sellers and buyers. Suppose you fancy becoming a thriving real estate agent. In that case, you must be at least 19, take pre-licensing education, and pass particular licensing exams, depending on each US state regulation. A license costs between $525 and $1,325.
You must pay a fee as a real estate agent to keep your license active. Moreover, you must also take additional educational courses in several states to stay up-to-date with new regulations and rules. You should also know that you can become a real estate broker after three years. A broker is a more knowledgeable and experienced agent, frequently overseeing their own real estate office.
Realtors get more access to housing information through NAR’s MLS.
A realtor is a certified housing agent who is also an active member of the NAR (National Association of Realtors). Founded in 1908, NAR is the leading American real-estate organization, counting 1,572,093 members as of November 2023. A realtor must pledge to honor the real estate code of ethics. The code of conduct states that realtors must treat their customers honestly and put their interests above their own. Secondly, they agree to participate in regularly organized educational courses.
Thirdly, realtors must pay a membership fee ($156 per member for 2024.) Why should real estate agents join the association despite the ongoing and much-debated NAR commission lawsuit? NAR membership granted realtors access to the Multiple Listing Service (MLS). MLS is a regional database of properties for sale (and already sold ones) in a given geographic area. As a matter of fact, this was one of the primary reasons to hire a realtor.
However, things have changed lately. The MLS is vital for conducting business in residential real estate. NAR has long sought ways to prevent non-members from accessing it. This restriction required individuals to join their local NAR to earn a living, whether they wanted to or not. There are so many websites that manage MLS listings, such as Trulia, that you no longer need to be an NAR member to obtain access. Joining MLS listing sites costs far less than becoming a National Association of Realtors member.
When working with a realtor, you must know that your interests are represented by someone who conducts enough business that paying an NAR membership is worth it for them.
What are the advantages of hiring a real estate agent and a realtor?
As mentioned earlier, the 21st century has given us fast access to information. Nowadays, everybody wrongfully assumes that the Internet can supply all the necessary data to become an expert. However, in most people’s lives, selling, buying, or investing in a property (industrial, residential, or commercial real estate) will likely be the most substantial financial investment. There’s a great deal at stake. We can’t rely solely on often untrustworthy online information without someone who can interpret data and put all details in a larger context.
That’s the moment when we turn to professionals. In the US, people often use the terms “real estate agent” and “realtor” interchangeably. However, both are established experts with the same market knowledge, experience, access to listings, negotiation skills, network, and connections. Why should one pick a real estate agent over a realtor? Basically, the most notable advantage is that you can negotiate the commission rate better with agents compared to a realtor. See details further on!
Real estate professionals have already obtained reliable and comprehensive market knowledge.
Studying online data and statistics will never help you form such a comprehensive picture of the local real estate market trends as a professional local real estate agent or a realtor. One of the main reasons to hire a real estate agent is that they know the local housing market inside and out.
On the one hand, real estate agents may lack realtors’ vast knowledge and experience. Still, they usually possess in-depth knowledge of specific neighborhoods or areas. This local expertise can be particularly advantageous if you have determined a target location. In such cases, you will want someone to guide you through the local market trends, school districts, must-see places, and amenities. In addition, they can address vital inquiries, such as the safest states and cities in the States.
Then, affordability can also be decisive when picking a new moving destination. Realtors and real estate agents can also point you toward the neighborhoods with the lowest cost of living. For this reason, one of the reasons to hire a realtor or a real estate agent is to cut expenses and lead a financially stable life.
Enjoy the benefits of extensive networking with realtors and real estate agents!
How often did it happen that you needed expert financial assistance or a helping hand around the house and didn’t know whom to contact? This can be even more frustrating in emergencies, for instance, when preparing for a house sale.
Realtors and real estate agents can access an extensive network of professionals. This community of experts can include mortgage brokers (when applying for a loan), home inspectors, contractors, and subcontractors. This know-how can be beneficial when finding reliable service providers or negotiating deals.
More timely and accurate access to vital housing information
Additionally, realtors may have access to real estate listings before they hit the market. So, why don’t you benefit from this competitive edge? Despite a perceived (yet entirely earned) large commission, buyer’s agents will work around the clock to bring the best deals to homebuyers based on their housing requirements.
Agents and realtors have excellent negotiation skills.
Real estate transactions involve savvy negotiations. Another of the essential reasons to hire a real estate agent is that they are well-versed in this art. They have exceptional communication skills and can champion your best financial interests during price negotiations, repairs, and other aspects of the deal.
Their expertise can save you money or secure a better deal than you would have obtained. At the same time, they can also negotiate better terms for lowering your closing costs.
Real estate commissions: how much do real estate agents and realtors charge?
Another critical difference to know between a real estate agent and a realtor is their commissions. Real estate agents commonly set lower commission fees than realtors. This cost-saving factor may be enticing if you work on a tight budget or seek to boost your ROI. However, it’s crucial to consider the quality and scope of services provided and the fees charged.
Picture you’re a homeowner about to sell your house at $500,000. You can choose to work with a realtor with a fixed commission, usually six percent. This implies a $30,000 commission on the closing day.
Or, you can hire a real estate agent (who can have the same access to MLS and a dedicated work ethic as a realtor) with a negotiable commission rate. You can even push the commission fee down to four percent! This means that you’ll have to pay them only $20,000!
We recommend constantly checking a particular real estate agent’s or realtor’s online reviews! Realistically speaking, this is the most trustworthy source of information to see how good they are at their jobs.
What are the cons of hiring a realtor or an agent?
Most people believe the question of high costs goes against reasons to hire a realtor. Whether you hire a realtor or a real estate agent, you should prepare to spend money on their services. Realtors typically charge higher commission fees (five to six percent of the home’s selling price). Nevertheless, their skills, competence, and network can justify the extra expense. On the other hand, one of the reasons to hire a real estate agent is that they charge lower fees. Yet, their limited services could leave you needing further support from other professionals.
Commitment and availability
Real estate transactions can be time-sensitive. A lack of dedication can go against reasons to hire a real estate agent. They may have multiple clients at the same time. This could affect their availability and tarnish the level of dedication to your specific needs. For this reason, it is essential to establish clear communication about your expectations!
Final thoughts
The pros and the sound reasons to hire a real estate agent and realtors definitely outweigh the cons. Don’t let the abundance of online real estate market information mislead you! Unfortunately, in some cases, these are entirely unreliable or outdated. Furthermore, they create unrealistic expectations for you before buying or selling a home.
You’ll need someone with training, experience, and knowledge in the field. Plus, they can oversee the extensive network of information that comes with neighborhood practical knowledge and expertise. You must also consider their networking and negotiating skills, which can ultimately save you time and money. These are the ultimate reasons to hire a realtor. Otherwise, you can expose yourself to risks, like misreading the market or dealing with swindlers. To dodge these bullets is worth every penny (and commission)!
I personally think the best route is to choose a real estate agent or realtor in your area. I believe one simply can’t assemble such vast knowledge online to make an informed decision, especially when it comes to such a significant financial investment. An agent can be with you all along.
