What is a Realtor?
A Realtor is a licensed real estate agent or broker who is a dues-paying member of the National Association of Realtors (NAR). The term Realtor is a registered trademark of NAR and can only be used by its members. While all Realtors are agents or brokers, not all agents or brokers are Realtors.
NAR is the largest trade association in the United States, with over 1.5 million members. Membership provides access to the MLS, continuing education resources, legal hotlines, and industry lobbying representation. More importantly, members agree to abide by the NAR Code of Ethics, which imposes standards beyond what state licensing laws require.
NAR Code of Ethics
The Code of Ethics contains 17 articles governing Realtor conduct. Key provisions include the duty to protect and promote client interests (Article 1), the duty to be honest with all parties (Article 2), cooperation with other brokers (Article 3), and the prohibition against misleading advertising (Article 12). Violations can result in fines, suspension, or expulsion from NAR and loss of MLS access.
For investors, the Code of Ethics means Realtors are held to a higher standard of disclosure and fairness than non-member agents. This can be both an advantage (more reliable dealings) and a constraint (Realtors may be less willing to participate in creative or unusual transaction structures that could raise ethical questions).
MLS access and the Realtor advantage
MLS access is one of the primary benefits of Realtor membership. The Multiple Listing Service is a database of properties listed for sale by member agents. It contains the most comprehensive and up-to-date property data available, including listing history, showing feedback, and internal agent remarks not visible on public websites. For investors, having a Realtor partner means access to comp data, days-on-market metrics, and listing alerts that inform better deal analysis.
The NAR settlement and commission changes
In 2024, NAR settled a landmark class-action lawsuit that changed how commissions work. The settlement eliminated the requirement that listing agents offer compensation to buyer's agents through the MLS. Buyers now negotiate their agent's compensation separately. This shift has created uncertainty about the traditional commission model and may affect how investors work with Realtors going forward.
Realtors and wholesalers
The relationship between Realtors and wholesalers varies. Some Realtors actively partner with wholesalers as a source of off-market deals or as buyer representation. Others view wholesaling skeptically due to concerns about unlicensed activity or ethical gray areas. Building trust with Realtors in your market requires transparency about your role, clear communication, and demonstrating professionalism in your deal packages and transaction handling.