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fstop123/Getty Images June 01, 2022 Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When you’re looking to sell or , you’ll see a range of titles attached to the professionals who can help you navigate the process: . While all of these individuals should be able to offer guidance, it’s important to understand what it means when you see “Realtor” next to someone’s name.
What is a Realtor A definition
A Realtor with a capital R — also often written with all capital letters as REALTOR — is a licensed real estate professional who is also a member of the National Association of Realtors (NAR). The word is trademarked, hence the capital; you’ll also often see a registered trademark symbol next to it. It is certainly possible to be a fully licensed agent or broker who is not a member, but they are not called Realtors. How many Realtors are there
As of April 2022, , according to data from the organization. So there are more than 1.5 million Realtors in the U.S. How do Realtors make money
Realtors facilitate real estate transactions for clients who are buying and selling homes. They work on a , meaning that they earn a percentage of what a property sells for. Historically, those commissions have typically added up to about 6 percent, with 3 percent going to the buyer’s agent and 3 percent to the seller’s agent, and they were covered by the seller. However, commissions are often negotiable, and . Realtors may also pay a portion of their earnings to their brokerage, along with a range of other expenses. These can include marketing, membership dues for various organizations, access to the local and other business costs. What s the difference between a Realtor and a real estate agent
A Realtor is a real estate agent, but the titles are not identical. All real estate agents are licensed to help buy and sell properties via educational courses and passing a state exam. A Realtor has done all that and is, in addition, a member of the National Association of Realtors. Joining the organization indicates that they have passed the association’s course and have agreed to follow its bylaws and code of ethics, among other factors. What is the Realtor code of ethics
While Realtors’ job responsibilities may differ, they all agree to the same . It’s a lengthy document that holds anyone with the Realtor designation to a high standard of professionalism and integrity. It also aims to protect consumers. Tenets of the code include: Never mislead an owner about the market value of a property Never lie about potential savings and benefits of working with them Submit offers and counter-offers as quickly as possible Fully disclose compensation amounts Offer equal professional services to customers regardless of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity Use honest and truthful advertising Never make false or misleading statements about other real estate professionals, their businesses or their business practices Do you need a Realtor
Buyers and sellers are not required to work with a Realtor, or with any agent at all. Here are some common alternatives. Sell it yourself
Some homeowners take the FSBO — — route. According to the most recent data from NAR, 7 percent of homes are sold by their owner. While doing it yourself does eliminate commissions, it also tends to eliminate some of the profit potential: FSBO homes tend to sell for less than traditionally listed ones. In 2020, the typical FSBO home sold for about $260,000, while those sold with an agent pulled in $318,000, the association says. Use an iBuyer
Instead of dealing with open houses and traditional showings, some homeowners sell directly to such as Opendoor and Redfin Now, which use algorithms to give you an instant offer. It’s convenient, but it also comes at a cost. Since iBuyers typically aim to turn around and flip your house for another sale, they will likely offer you a lower price so they can increase their profits. Shop around on your own
You can also . But if you’re thinking about this option, be prepared for a lot of work. You’ll need to do all the negotiating yourself, plus there is a mountain of paperwork — including complex disclosures and legal contracts. It’s a bit overwhelming, and it’s nice to have an agent who understands it all working on your behalf.
Help finding a Realtor
Finding a Realtor isn’t hard. After all, you probably see billboards and for-sale signs with names and contact information all the time. However, you shouldn’t hire just anyone to help with one of the biggest financial decisions of your life. You’ll want to . It’s wise to start by asking friends, family and colleagues for recommendations. Don’t just take their word for it, though. Make sure you interview a few different candidates, and to get a sense of how they will approach your house hunting or selling needs. The better you click with your Realtor, the better an experience your transaction will be. SHARE: Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Related Articles