Most people won’t even take note of someone in the real estate business referring to themselves as either a realtor or a real estate agent, and that’s just fine considering most people with working with an agent in any capacity won’t care to know the difference anyway. Their focus is going to be entirely on knowing what price they can likely get into the ideal home for if they are homebuyer clients, and if they are clients who have a home on the market they’ll want be selling it for as much money as possible.
This is true for folks in Alberta the same way it is for any Province in Canada, and so our focus here is going to be explaining the difference with realtor vs. real estate agent in Alberta or elsewhere. If we look at it from the angle of services provided there isn’t going to be much to distinguish the two, and in a sense that’s a good thing as having as much clarity as possible is always a plus when you’re making pivotal life decisions along the lines of buying or selling a home.
The focus is always going to be on acquiring the individual’s expertise with buying or selling real estate, as that’s something that is beyond the scope of most people. Sure, you can sell a home on your own but choosing to be a Fizbo – the term used for some who is selling a home without a realtor – isn’t often a good choice and people quickly learn there’s a reason why realtors AND real estate agents have to spend time learning the business. Even longer after they’ve passed the Provincial real estate exam.
If you’re considering working with one such person then you have probably already been convinced of their expertise, and there definitely is an element of trust in it all considering how much money and life interests are going to be wrapped up in people’s home-ownership decisions.
So without previewing this any more than necessary let’s get right to exploring the difference between a realtor and a real estate agent, and taking into consideration that most people who ready this blog with any regularity and signed up for paid real estate leads will probably already be one or the other.
Real Estate Agent
There are already plenty of terms in real estate that can be daunting, but most of them aren’t related to the roles of the professionals involved. However, if you’re confused about the difference between a Realtor and a real estate agent then your query around that shouldn’t be dismissed or seen to be any less relevant to helping you have a better understanding of who you’re going to be working with.
Here it is for realtor vs. real estate agent Alberta, and we’ll tip you off a bit saying the difference is really related to little more than being credentialed in a specific way. But let’s start with the explanation and comparison anyways.
A real estate agent is a professional who’s licensed to assist people in buying, selling, or renting properties in their Province. There may be different requirements for becoming a real estate agent that vary Provincially, but will typically include completing a certain number of hours of real estate coursework, then passing a background check and passing an exam.
Once that’s accomplished then the real estate agent will be able to represent buyers, sellers, or both and may work in various capacities, including residential, commercial, rental, or industrial real estate.
Realtor
We talked about being credentialed, and that’s what makes the difference between real estate agents and realtors. To be considered a realtor you need to be an active member of the National Association of Realtors (NAR) and be adhering to the associations code of ethics and standards of practice. In fact it’s actually a trademarked designation, and without it you are a real estate agent and not a realtor. Only those who are NAR members can use the title.
There are definitely advantages to be gained from having the designation, as realtors have access to additional resources and tools provided by the NAR and some of them can directly benefit the realtor’s clients. This includes access to professional development opportunities and various marketing tools. Membership may also be bundled with access to local multiple listing services (MLS).
It’s fair to say that all agents and realtors are real estate professionals, but not all real estate agents and brokers are Realtors. So the next focus has to be on whether or not there are differences between what is expected of a real estate agent as compared to what will be expected of a realtor.
Duties & Responsibilities
A wide array of responsibilities will apply to a real estate agent as we focus on Realtor vs. Real Estate Agent in Alberta. They evaluate property list prices, advertise listings, negotiate and close deals, and guide clients as they move through the process of buying or selling a home. Their clients will expect them to possess a deep understanding of the local real estate market and provide clients with key information on a variety of topics, including market conditions, prices, mortgages, and legal requirements.
The average day, however, will be no different between either type of real estate professional. It’s typically a whirlwind of activity, from hosting open houses and making cold calls to meeting clients, negotiating contracts, and completing plenty of paperwork. But of course that is all part of meeting the agent’s goal of ensuring their clients’ real estate transactions are successful, whether that means helping them find their dream home or selling their current home and moving into a newer one.
Realtors will have a few other added responsibilities that an agent won’t though, and they are by and large related to doing what is needed to maintain their designation based on NAR guidelines. This will involve:
- Maintaining a valid real estate license and continuing to actively engage in real estate as a business.
- Adhering to operating principles and attending ethics training if needed. It may be that the realtor in Alberta is required to complete a Code of Ethics course, although it is unlikely in most cases and may only be individual-specific.
- Paying annual membership dues if applicable.
- Continued compliance with governing policies and following all NAR policies, including its bylaws, governance rules, and any updates or revisions to the Code of Ethics.
- Serving or contributing to Provincial REBs (real estate boards) as required via the realtor’s brokerage and to help advise on rules and governance changes. Attending annual conferences may be necessary too.
Commission Interests
A real estate agent or realtor will always have one aspect of their work in common, and that’s being paid with commission on home bought or sold through them. The way these payments are made depends on the role. With an agent it is much more likely their commission is going to be determined based on broker splits. That’s a term most people will have never heard of so here is what it means. Agents will be working under a supervising real estate broker, and the money earned from a commission will need to be split between the agent and their broker.
The brokerage split can vary based on the agreement between the agent and his or her broker, but what may be a 50-50 split for some may be a 70-30 or 80-20 split that favors the agent instead. Weighing a real estate commission may factor into Realtor vs. Real Estate Agent in Alberta if someone is deciding whether it is worth it or not to go and get the realtor designation.
Standard commission rates can vary but are currently around 5% to 6% of the sale price. The way it usually works is that this total commission is split between the buyer’s agent and the seller’s agent. What is worth noting here is that this arrangement may be changing in the near future, and if it does it will be based on what’s happened recently with the NAR in the USA. In August in this year the common practice of listing the offer of compensation between brokers (also known as cooperative compensation) in the MLS is no longer allowed.
So you must be selling a home outside of the MLS to be able to receive a commission exclusively to yourself if you are a designated realtor. The idea behind this change is to provide more clarity around commission structures and make it more likely that compensation is openly negotiated between parties.
Recommended Move
Continuing our look at the difference between realtors and real estate agents, we will take this opportunity to recommend becoming a realtor and having that accreditation for yourself if you choose to start a new career in real estate. For starters, it is going to make the prospect of working with you more appealing for would-be clients as they will have an inherent assurance in your professionalism and real-estate market expertise when you have the designation as a realtor.
For consumers, working with a realtor can offer an extra layer of confidence and trust in their agent’s competence, plus being assured of their having ethics and honesty in working as real estate professional who is guiding the investment of a lot of money most of the time. Realtors have a competitive edge, helping them stay informed, up to date, and connected in the industry.
Realtors must regularly complete ethics training and reacquaint themselves with the code to ensure that these principles remain front and center in their practice. Being familiar with all of the articles in the NAR’s Code of Ethics is required for these realtors, and it does real good for ensuring standards of conduct and professionalism. These articles are grouped into the following three categories:
- Duties to clients and customers
- Duties to Realtors
- Duties to the Public
Adherence creates a culture of operating in their clients’ best interests with integrity, competency, and transparency, and can even be seen as a roadmap for professional behavior that builds trust between Realtors and their clients. This is very much a part of what you can gain as an advantage with being a realtor as compared to a real estate agent.
Violations can result in various penalties, and they will vary in severity based on the violation and the findings of the local association’s professional standards committee. A realtor who breaches any of the NAR’s operational guidelines may receive:
- Fines
- Mandatory education
- Suspension or termination of membership
- Reprimand or censure
- Probation
How to Become a Realtor
The last aspect of Realtor vs. Real Estate Agent in Alberta we’ll go over here is what new realtors in Canada’s most booming Province can expect as they move towards a new career working as a realtor in Calgary, Edmonton, or elsewhere in Alberta. This starts with meeting any Provincial education requirements, and then of course you will need to pass the Alberta Provincial licensing exam. That’s it, and from there you’ll be ready to work as real estate agent or realtor in the province.
That’s the long and short of Realtor vs. Real Estate Agent Alberta and as you’d guess we encourage all realtors or agents in any Province to sign up for paid real estate leads in Canada here.
