What Is The Difference Between A Realtor And A Real Estate Agent

Although both Realtors and real estate agents are licensed to sell real estate their is one significant difference and that is to use the designation of Realtor a real estate agent must be a member of the National Association of Realtors. (Realtor and Realtors are registered trademarks of the National Association of Realtors)

As a Realtor, a real estate agent must adhere to the Realtor Code of Ethics – an industry enforced set of rules shaped by 17 Articles and underlying Standards of Practice.

Although this article doesn’t have the space to provide the 17 Articles in their entirety here is a summary of what a real estate agent is required to abide in order to be called a Realtor….

• A Realtor pledges to put the interests of both sellers and buyers ahead of their own interests and to treat all parties honestly
• A Realtor shall not exaggerate, misrepresent, or conceal any material facts
• A Realtor will cooperate with other agents when it is in their clients best interests
• A Realtor has a duty to disclose that they are licensed to sell real estate if they represent themselves or family members who own or are about to buy real estate
• A Realtor won’t provide professional services where they have a present or possible interest without disclosing that interest
• A Realtor shall not collect any commissions without the seller’s knowledge and will not accept fees from a third party without specific consent from the seller
• A Realtor will refuse fees from one party without the consent of all parties
• A Realtor will not mix client funds with their own
• A Realtor will attempt to ensure that all written documents are easy to understand and provide copies of all signed documents
• A Realtor will not discriminate for any reason on the basis of color, religion, sex, handicap, familial status, or national origin
• A Realtor can expect all agents to be competent and to refuse services for which they are no qualified
• A Realtor will engage in truth in advertising
• A Realtor will not practice law unless they are a lawyer
• A Realtor will cooperate with all agencies and provide all evidence requested if charges are brought against them
• A Realtor will not bad mouth or disparage their competition or file unfounded ethics complaints
• A Realtor will not solicit another Realtor’s client or interfere in a contractual relationship
• A Realtor will submit to arbitration to settle matters of disagreement and won’t seek legal remedies through the judicial system

How To Buy A Home

For the vast majority of first time home buyers the home buying process can be quite daunting.  Using the services of a reputable real estate agent specializing as a buyers agent is highly recommended and the good news is there generally are no costs to you for those services.

The first step in the home buying process is to get pre-approved through a lender who will define your loan limits. (See a previous post here on the process of getting a mortgage)  Your real estate agent can be instrumental in helping you find a home mortgage company as well.

Once you have your loan parameters set, your buyers agent can set up a search specific to the wants and needs you may have and will arrange to show only those homes that fit your criteria.  Most real estate agents will even preview homes before showing them to you in an effort to make the search process most productive.  Keep in mind that when viewing homes on your first time out it is recommended that  you look at no more than 7 to 8 homes be viewed as experience has proven that any more than that can lead to brain overload with specific details becoming fuzzy.  The simple fact is that if you are clear on your wants and needs and you and your real estate agent are communicating, you shouldn’t need to look at more than 10 homes after your first day out to find the home you want to purchase.

Upon finding your home, your real estate agent will draft a contract offer for you and submit it to the sellers agent.  Counteroffers may follow until you agree on a price but when you do agree on a price it is time to open escrow.  Your buyers agent will open escrow with the title company agreed upon in the contract with an earnest deposit supplied by the buyer.  The buyer will then follow an inspection schedule to ascertain the full condition of the house and whether or not the buyer wants to continue with the purchase.  Many sellers are willing to negotiate on negative home conditions unveiled in an inspection so don’t give up hope and rely on your real estate agent to keep the deal alive and favorable.

The escrow process (which usually lasts anywhere from 30 to 45 days on average) also consists of the buyer providing all required documentation to satisfy the lenders needs for obtaining a mortgage.  It is this process that usually takes up the most time so be sure to get all requested documentation to your lender as quickly as possible.

Considering all has gone relatively well, it will be time to sign your loan documents at the title company or your mortgage company (depending on state protocol) and you can expect your real estate agent to be present to help with any questions or discrepancies that may arise.  Once all loan funding has been completed and the title recorded with the applicable state agency you will be given the keys to your new home and elevated out of the ranks of a first time buyer.