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REALTOR® vs. Real Estate Agent - It should matter more than it does.

By
Real Estate Agent with Compass

Foreward:  This post has been edited with the proper REALTOR® throughout.  I still think it is an awful idea, but don't want to be sued.  

 

The National Association of REALTORS®  has done a good job of branding the term REALTOR®, so much that the general public things all agents are REALTORS®, which dilutes the brand completely.   The NAR wants us to trademark or use in ALL CAPS the name, which is obnoxious, and not where the focus should be.   The real news media can't even adhere to that request (I tried once when quoted for a Washington Post story). If the news media cannot use it, then end up calling all of us "real estate agents" thus adding to the confusion.  NAR is not helping themselves at all with this requirement.

REALTORS®  are due paying members of the National Association of REALTOR®  and must adhere to a strict Code of Ethics, which is supposed to ensure that they are treating their clients, the public and each other fairly and with honesty.   It is enforceable and comes with great consequences to those who break it.    However, paying the dues, using ALL CAPs or a ® and taking CE classes on ethics does not make an agent good.  Getting a license and paying NAR dues teaches you nothing about being a real working agent, at least in VA.  It's frustrating and really stupid, but it's the truth, and I wish NAR would focus more on this than how the word is written.     There are two main factors that make agents great.  

#1 cannot be taught and there are many words to desribe it, the French would call it that je ne sais quoi - Class, Mental Fortitude, Agility, Heart, Soul:  

What makes an agent really good has not as much to do with being a Realtor as having good instincts.   And of course, some things are innate, cannot be taught.   Being cool (not as in hip, but as in level headed) open minded, friendly, approachable, willing to listen and learn and play well with others.   Caring not only about ones self, but about the person or family who has entrusted you to handle the largest financial transaction of their lives.   It's only tough if you lack empathy, or are desperate for a paycheck.  You need to truly get the role of a fiduciary who is paid by commission, be okay with the opposing forces that can pull you between getting paid and doing what's right.  Not everyone can do it.  Not every one can answer "What do you think?" with the answer that guides the client to make the best decision themselves and not just push them to get the deal done.  

#2 High level training:

Hands on experience with a mentor and a brokerage that gives real world workshop type training and sinking or swimming.   It's important for agents to be able to work with real clients, in the field, with a strong mentor backing them up to make sure they don't mess up.   And before you protest that no real person should be an agent's training ground, remember that I am saying new agents need a solid mentor in their court and a brokerage full of workshops and deeper level instruction guiding them to do well.  Starting with renters is a great idea, because you get all the real hands on experience of working with clients, but the stakes are not quite as high.   

I am happy to be currently mentoring a new agent for the second time.  She was my client a year ago and as soon as she expressed an interest in selling real estate, I did every thing I could to encourage her, then get her at my brokerage and now mentor her.   Why?  Because this business needs more good agents with the right innate qualities to succeed.  I encourage every agent to get good people who posses the je ne sais quoi of #1 to take the plunge, get them to your brokerage, believe in their success and offer to mentor them.

The REALTOR® brand is not as powerful as it should be, because having a Code of Ethics agents must adhere to is just not enough.  I wish the National Association of Realtors would require all agents go through at least a 6 month mentoring/training program and that their first transaction be with renters before they can work on a sale.   I do think it would raise the bar of this industry, keep out the desperate and selfish, and make the REALTOR®  brand what they want it to be.   

Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

Fred it is like Kleenex - I think that's a major mistake on the part of NAR.  

Leslie - Thank you.  You crack me up.  I can just see you having a long deep conversation about Realtor brandng with yourself!

Nov 16, 2012 08:50 AM
Gregory Bain
Mezzina Real Estate & Insurance - Little Egg Harbor, NJ
For Homes on the Jersey Shore

I'm with Jon Zolsky on this one. Paint me unhappy with the whole corrupt system, a system dominated by the NAR. I resent the constant attack on other agents that are not members - I'm forced to belong if I want to use the local MLS.

Nov 16, 2012 10:32 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County
I love the way you equate #1 with the French. A new agent in our office just took the Realtor ethics training. He said the training was great.
Nov 16, 2012 11:38 AM
Richard Arnold
Keller Williams Realty East Valley - Tempe, AZ
Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix

I knew the difference long before I went to Real Estate school because I made an effort to find out.  Not just once, but over a period of years - whenever I heard the term, I had a gut feeling that people were using it WRONG most of the time.

In school and at my office I rarely hear people use the term or address the responsibilities & benefits we have from being members of NAR.  Locally I see the benefit every time I use a standardized form to write up a contract.  Our state AAR develops, educates, reviews and revises these forms to make contract writing EASIER for us as professionals, and more BENEFICIAL to the Buyers and Sellers in the usefulness of describing their agreement.  How many of us would like to write a purchase contract from scratch on a napkin with no references?  You cannot measure how HUGE this benefit is to us!

We sometimes forget that we are a SELF-DEFINING industry with regard to our Standards and Practices.  Sure there are laws that govern sales and commodities, but WE have set the standards that define our behavior and what constitutes "professionalism".  Would you rather burn all the forms, rip up the ETHICS standards and let the dogs run loose?

What would be then?  Used Car Salespeople?  Do THEY have a set of standards and practices and an organization which fights to shine their reputation and public image like we do?

The power of the term REALTOR®  can be felt the moment the word is spoken.  People shift in their seats, adjust their ties, start staring at the ceiling...."who me?  You REALLY expect me to uphold the standard?"  

YES!  Can I say ACCOUNTABILITY?  Did the room just clear, or did the honorable among you stand your ground, or stand up and be counted as a professional who doesn't fear being measured against the standard?

Using the word around Clients makes THEM shake, too!  They know they're dealing with more than one agent who says "stuff".  They know there's a body they can check this agent's words against.  They know there's a lot of support and cooperation behind us that give our words POWER and RESPECT.  I believe that any person who doesn't respect that TRUTH doesn't deserve our business.

Even so...we can still TEACH THEM ONE AT A TIME.

Nov 16, 2012 11:45 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Carol - I do not have the actual stats, but as far as I remember only half of all agents are Realtors.

@Gregory - excellent point. I resent bashing non-member agents as inferior. They are not. NAR is not the place for just good agents. It is a place for paying agents, no matter how bad they might be.

Nov 16, 2012 11:55 AM
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hi Coral,

I'm one of those real estate professionals licensed by the Georgia Real Estate Commission but not a REALTOR.  In Georgia we do not currently have to belong to NAR to access the MLS.  At the state level is GAR (Georgia Association of Realtors) and then the local boards across the state.

We did have a change at the beginning of 2012.  GAR decided to charge non-REALTORs for the use of the GAR Forms.  I think there was a sizeable exodus of licensees leaving the local boards that impacted GAR/NAR revenue.  Some of the lost revenue is made from the charge for the GAR Forms.  And we who use the GAR Forms have a guarantee of being defended by the GAR attorney firm if we ever have to go to court.

Anyways you are correct that the general public makes no distinction between a licensee and a REALTOR.

Good post especially about the solution of training and mentoring.  Best of success to you this year!

Nov 16, 2012 12:06 PM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

I believe the law is federal, no association can require membership in NAR to have access to MLS maybe it has not been enforced at your board or challenged but if a non member ask I bet they would scurry to allow it. They are called THOMPSON Brokers after the broker that sued in federal court. Most associations let it lie so as to keep the membership but the law is there.

Nov 16, 2012 12:12 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

The general public doesn't know the difference....and at the moment I can't think of anyone I know who is "just an agent."

 

Nov 16, 2012 02:03 PM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

I agree with Jon #5 in part as I don't like many things NAR has done or not done, on the other hand after visiting and taking courses at my local OCAR (Orange County) and local PWR (Pacific West) and some dealings with CAR lawyers I see the many benefits of the local association involvement and is well worth the premium that is required for MLS access in O.C.

"I go to Paris NOT for the rude Parisians but for the greatness of many other things Paris has to offer."

Nov 16, 2012 02:15 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

@ Charles - thompson Broker is very expensive, and then it displays your name in some weird form. I remember checking with the Board, and it was not a good option for us.

Nov 16, 2012 02:18 PM
Jon Karlen
Finish Line Realty - Louisville Ky Real Estate - Metropolitan Service Area - Louisville, KY
Louisville Kentucky real estate - Metro Area

Definitely is a difference.  But unfortunately in the eyes of most consumers, there is no difference.

Nov 16, 2012 02:42 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I agree - paying dues to an organization doesn't make you a good agent. And taking a class on ethics doesn't make you an ethical person. The rules say ethics violations will be enforced, but from what I've seen, the person filing the complaint has to take so much time away from work for hearings, etc. that most simply don't do it.

Nov 16, 2012 04:00 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Bottom line is the way you treat your clients . . designation or not. .is all about quality care.

Nov 16, 2012 08:05 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Coral, the NAR has done such a good job at promoting the REALTOR® brand that it has become synonymous with the term real estate agent. The person on the street doesn't really know the difference and probably really doesn't care. The NAR is a trade association and nothing more.

You are right on target with mentoring. I run a mentoring program for a commercial real estate association. It's the only way for a new agent to gain that initial experience. I also believe new agents should have to go through an apprenticeship program before being let go by themselves on the street. This would require the individual State's to initiate these laws.

Nov 16, 2012 10:07 PM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

What is interesting in CA is that pretty much everything in the Code of Ethics is codified into our Business and Profession code, so Realtor or not, one is forced to abide by certain standards of conduct.  The Code of Ethics just makes it easier to resolve any dispute one has with their agent (it can be achieved without going to court), and handled internally at the person's local board.

Nov 16, 2012 11:01 PM
Gina Lollo
Northshore Properties Realty - East Setauket, NY
"Love where you live"

Unfortunately, most peope think they are one in the same.  Your post is well needed.  

Nov 17, 2012 02:20 AM
Steve Hoffacker
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor

Coral,

Those agents who don't belong to the Board don't have to adhere to the rules that you do. :)

Steve

Nov 17, 2012 03:18 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

All one has to do is read the NAR guidelines on use of the TRADEMARK and one will find that the "mark" is ALWAYS written in all CAPS, and with the symbol.

Therefore, since my typewriter doesn't have the symbol and will not recognize the coded typed symbol, I'm reduced to copy & paste the symbol.  Do you know how much time that takes??  I'm much more likely to simply write, real estate agent.

Many years ago, in about 1995, I was reprimanded by mail by a functionary in the Virginia Association of REALTORS.  According to him, since my web page was about real estate, real estate agents, REALTORS, etc., any time I referred to "real estate agent", the trademark MUST BE USED.

I appealed to the association counsel and they agreed with my use of real estate agent in Internet content.

For some years following that rediculous incident, I did not include the word REALTOR in any Internet content.

 

Nov 17, 2012 09:17 PM
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.
Lenn, thanks! I will wait to see if I get slapped, perhaps I should go through and write REALTOR(r) everywhere? It is such an odd and unenforceable trademark. Especially when the press cannot and will not adhere to it, the choose to write "realty agent" or "real estate agent." I think the all caps and insistence on the (r) is hurting the brand way more than helping it. I cannot even do the actual circle r on my iPad.
Nov 17, 2012 09:28 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I have never been quite sure what the difference is and therefore try to remember to use the word "agent" so I don't upset the apple cart.  I don't think most consumers have a clue there is a difference.

Nov 18, 2012 05:58 AM