- The Real Estate market worldwide is expected to reach a staggering value of US$654.39tn by 2025.
- Among the various segments, Residential Real Estate dominates the market with a projected market volume of US$534.37tn in the same year.
- Looking ahead, the sector is anticipated to grow at an annual rate of 2.69% (CAGR 2025-2029), resulting in a market volume of US$727.80tn by 2029.
Investing in a property or buying a home falls among the biggest financial decisions most people ever make. But still, there is a lot of confusion when it comes to understanding the titles they often hear, such as real estate agent, broker, and realtor. These terms are used commonly, even so regularly, but what they actually do and what job roles and responsibilities fall in their range is also not clear.
In 2025, having an understanding of all such distinctions matters a lot, even more than ever, if you are truly into buying and investing in property. With the new industry changes and updated licensing, there are changes that have been seen from commission lawsuits settlements, and they have reshaped how the real estate professionals get paid, while shifting the eBay buyers, sellers, and the professionals with conduct interaction. Alongside, the need for consumer awareness around ethics and trust is no longer optional but essential.
They must know about what sets an agent and broker apart. And is a realtor, just another name, or are they completely different?
By the end of this blog, you will have a clear picture of who does what, how they all get compensation, and which profession — along with the right digital tools such as real estate SEO services — is best suited to help you attain your real estate goals in today’s market.
Quick Comparison: Agent vs. Broker vs. Realtor
Feature | Real Estate Agent | Real Estate Broker | Realtor |
Licensing | Must hold a state-issued license to practice real estate. | Holds an advanced license beyond an agent; may run their own brokerage. | Must be a licensed agent or broker and a member of the National Association of Realtors (NAR). |
NAR Membership | Not required. | Not required. | Required — “Realtor” is a trademarked title exclusive to NAR members. |
Independence | Works under a broker’s supervision. | Can work independently and supervise agents. | Varies — can be either an agent or broker, but must adhere to NAR standards. |
Ethics Code | Must follow state real estate laws. | Must follow state laws + brokerage rules. | Bound by the Realtor Code of Ethics (stricter than state laws). |
Who They Work For | Represents buyers, sellers, or both — but always under a broker. | Represents clients directly, manages transactions, and may oversee agents. | Represents clients like any agent/broker but emphasizes ethics, professionalism, and trust. |
What is a Real Estate Agent?
A real estate agent is a licensed professional who helps clients who look to buy, sell, or rent properties. They are also considered as an entry point into the real estate industry and usually the first contact a buyer or seller will have.
Licensing & Training
All real estate agents must have a qualification where they have passed the state-specific licensing exam, completing pre-licensing coursework (generally around 60-150 hours), depending on the state in which they pursue. It is required that they complete their education to maintain their license.
Role & Responsibilities
- They represent the buyers who are looking for the property, and they negotiate the property on behalf of the client.
- Also, they represent the sellers in listing, marketing or digital marketing, and selling their property.
- They also manage the paperwork, schedule the showings, and coordinate with the lenders, inspectors, and attorneys.
Note: They always work under a licensed broker, not independently.
What is a Real Estate Broker?
A real estate broker is a professional who has completed the add-on education and licensing requirements beyond the agent level and has the authority to work independently, and is eligible to supervise other real estate agents.
Brokers can also be experienced agents before advancing, but they also take extra coursework in real estate law, contracts, and business management, followed by a broker’s exam. Also, there are different categories of brokers are there, such as:
- Managing Brokers: These are also known as the principal broker, who runs the brokerage, oversees all agents, and ensures all compliance.
- Associate Brokers: They hold a broker license and choose to work under another broker rather than managing a firm.
- Broker-Owner: They choose to own and operate their own real estate business in the niche.
Consumer Takeaway
You can hire a broker for their real estate needs, as they all have prolonged expertise and independence in the market. Hiring them will ease all your concerns as they manage entire transactions, and they can even supervise other agents for the same job.
What is a Realtor?
A realtor is a licensed real estate professional, and could be an agency or broker who is an active member of the National Association of Realtors (NAR). But not all agents or brokers are Realtors.
Are You Struggling To Generate Sales?
Let Paid Advertising Turn Your Woes To Business Triumphs!
- Attract targeted potential audience
- High conversion rate
- Boost in Return On Investment (ROI)
Ethics & Membership Requirements
Realtors should adhere to the NAR code of ethics, setting up the professional standards that could go beyond state laws. It also includes placing the client’s interests above their own while being truthful in advertising. It includes cooperation with other real estate professionals.
Common Misconceptions
There are many people who use ‘realtor’ as a common or substitute term for any agent, but legally, it refers to a NAR member.
Being a Realtor does not mean someone is more qualified by license, but it also means they have chosen to commit to stricter ethical practices while belonging to the nation’s largest real estate trade association.
Consumer Takeaway
Working with a Realtor gives you an added layer of ethical assurance and professionalism, but not every licensed agent or broker carries this designation.
Key Differences Explained
When you hear the terms agent, broker, and realtor, they all seem the same and evoke the feeling that they perform all similar practices and just have different names for the same job role, but is it true? So, of course not, and here you will find out why.
1. Licensing & Education
- Real estate agents: They start at the entry level by completing the state-required coursework and passing a licensing exam to help clients buy and sell homes.
- Brokers: They carried forward their education with advanced training in real estate law, contracts, and further management. This exam is more difficult than the above.
- Realtors: Realtors do not reflect the different licenses; rather, they are professionals who attained membership in the National Association of Realtors (NAR).
2. Oversight & Supervision
Agents: They work under a licensed broker, who reviews the contracts and ensures compliance with state law.
Brokers: These brokers have the authority to work independently and supervise agents under their firm.
Realtors: These can be either an agent or a broker, and their supervision is associated with the licence level and the NAR membership.
3. Independence in Business
- Agents: They cannot open their own real estate office; rather, they work under the supervision of brokers.
- Brokers: They work to establish their own brokerage, hiring agents, and manage the real estate deal themselves.
- Realtors: They may or may not run their own firm. Being a Realtor, they hold a professional designation, but to open a firm, they require a license.
4. Ethical & Professional Standards
- Agents & Brokers: They follow the state-observed real estate laws and regulations to conduct their practice.
- Realtors: The NAR code of ethics is a mandate for them to follow, which requires higher standards of honesty, transparency, and client-first service.
5. Earnings & Commission Splits
- Agents: They earn a commission with each transaction, but need a required amount to split it with their broker.
- Brokers: They keep a larger portion, or even the full commission, when they work independently.
- Realtors: They don’t get paid differently, but their earnings depend on whether they work as an agent or a broker.
Is Your Business Website Not Visible On Google?
Get It Ranked On #1 Page With Us!
- Google #1 page ranking for targeted keywords
- Rank #1 on your local maps
- Increased brand engagement & sales
6. Branding & Consumer Trust
- Agents: These are all licensed professionals generally perceived as less independent, as they work under brokers.
- Broker: They carry a greater authority and credibility as they use an advanced license and the ability to manage firms.
- Realtors: They benefit from brand recognition. The NAR designation signals professionalism and reassures the clients of ethical standards.
Real Estate Industry Updates 2025
The real estate landscape is updating with such changes that affect how agents, brokers, and realtors function.
1. NAR Lawsuit & Commission Changes
Recently, the National Association of Realtors settled a major lawsuit by reshaping the commission restructures. Earlier, the sellers covered both their own agent’s and the buyer’s agent’s commission. But the new rules are to make more transparent arrangements, and in many cases, buyers expect to pay their own agent’s fees directly. These changes force customers to pay closer attention to who they are hiring and what professional value they bring to the table.
2. Rising Consumer Awareness
Homebuyers and sellers in 2025 are more informed than ever. They are interested in knowing about all professionals who represent them and how they get paid. Are they all legally obligated to act based on interest?
It shifts the difference between agent, broker, and realtor, which are no longer just industry jargon; rather, it changes how much they need to pay and how secure they are.
3: Tech Disruption in Real Estate
MLS Access: Consumers now have near-direct access to multiple listing service (MLS) data through online portals, reducing the ‘ gatekeeper’ role agents once held.
Online Brokerages: Virtual brokerages are growing, and allowing agents to work remotely with lower fees, changing traditional broker-agent relationships.
AI Tools: The availability of AI-driven chatbots can give automated property valuations 24/7 by reshaping the consumer experience and the skill agents need to stand out.
All in all, no matter whether you choose a realtor, agent, or broker, this time the title is not the important factor; rather, finding a professional who is trusted and understands your goals is. You must hire someone who can communicate effectively while representing your best interests in today’s evolving real estate market.
Frequently Asked Questions (FAQs)
No, it’s not necessarily. Realtors don’t earn more just because they have a title. The income is entirely dependent on whether the person is an agent or a broker. Their commission agreements and their market activity. However, being a realtor helps professionals attract more clients as they have gained credibility and trust by becoming an NAR member.
This thoroughly depends on the user’s needs. The agents handle most of the daily transactions and client meetings, whereas brokers have more experience, training, and authority to run their own firm. If your deal has more complexity and high value, the broker’s expertise would be more beneficial for your property dealings.
People still prefer realtors in 2025, as they offer expertise beyond online resources, provide emotional and logistical support, navigate the complex market dynamics, and save clients time and potential financial pitfalls.
Gurpreet Bhatt
CEO
Gurpreet Bhatt runs Softtrix Tech Solutions Pvt. Ltd. as CEO and is an accomplished expert in the field of SEO. Using his knowledge of Industry and SEO,
Gurpreet has earned Softtrix a prominent place in digital marketing. Under his leadership, the agency has accomplished notable goals, one of which is being recognized by
Google as a top PPC provider in India. Not only a skilled marketer, Gurpreet is recognized for being honest, hard-working, and passionate about his work.
He commits to helping his peers, colleagues, subordinates and overall industry, joining in discussions and suggesting tips to raise the standards of SEO and digital marketing.
