A friend of mine just passed her real estate exam in March 2026. She was filling out her first batch of business cards. She typed "Realtor" under her name. Her broker called her the next day and told her to change it.
She was confused. She had a license. She sold houses. Was she not a Realtor?
No. She was an agent. And the difference matters more than most people think. Let us break it down.
What is a real estate agent?
A real estate agent is someone who has passed their state's licensing exam and holds an active real estate license. That is it. No extra memberships. No special titles. Just the license.
To become an agent in most states, you need to:
- •Be at least 18 or 19 years old (varies by state)
- •Complete pre-license education — usually 60 to 180 hours depending on the state
- •Pass your state licensing exam
- •Find a sponsoring broker to work under
- •Submit your license application and pay the fee (typically $50 to $300)
As of 2026, there are roughly 1.58 million active real estate agents in the United States according to the Bureau of Labor Statistics. Not all of them are Realtors. Not all of them are brokers. But they are all agents.
An agent cannot work alone. Every state requires agents to work under a licensed broker. The broker is legally responsible for the agent's transactions.
What is a real estate broker?
A broker is an agent who went further. They completed extra education, passed a harder exam, and earned a broker license from their state.
Here is what separates a broker from an agent:
- •More education — most states require 60 to 150 additional classroom hours beyond the agent license
- •More experience — most states require 2 to 3 years of active agent experience before you can apply
- •A separate broker exam that covers contracts, agency law, property management, and brokerage operations
- •The ability to open their own firm and supervise other agents
Brokers can work independently. They do not need to hang their license under someone else. They can also hire agents and take a split of each transaction those agents close.
Types of brokers
Designated broker (or principal broker)
The person who holds the brokerage license. Every real estate firm has one. They are legally responsible for everything that happens under that brokerage.
Managing broker
Runs the day-to-day office. Handles agent training, compliance, and disputes. Works under the designated broker.
Associate broker
Has a broker license but chooses to work under another broker instead of opening their own firm. They have the credentials but prefer the support of an existing brokerage.
What is a Realtor?
This is where people get tripped up. Realtor is not a job title. It is a membership.
A Realtor is a real estate agent or broker who has joined the National Association of Realtors (NAR). NAR is the largest trade association in the country with about 1.55 million members as of early 2026.
To become a Realtor you must:
- •Hold an active real estate license
- •Join your local association of Realtors
- •Join your state association
- •Join NAR at the national level
- •Agree to follow the NAR Code of Ethics
- •Pay annual dues — typically $600 to $1,000 per year depending on your local board
The word "Realtor" is a registered trademark of NAR. That means you cannot use it on business cards, websites, or marketing unless you are an active, dues-paying member. Using it without membership can result in a cease-and-desist letter from NAR.
Side-by-side comparison
| Category | Agent | Broker | Realtor |
|---|---|---|---|
| License required | Yes | Yes (broker level) | Yes (agent or broker) |
| Can work independently | No — must work under a broker | Yes | Depends on license type |
| Can hire agents | No | Yes | Depends on license type |
| NAR membership required | No | No | Yes |
| Code of Ethics pledge | Not required (varies) | Not required (varies) | Required |
| Annual dues | State license fee only | State license fee only | License fee + NAR dues ($600-$1,000+) |
| MLS access | Usually through broker | Direct | Through local board (most common path) |
| Pre-license education | 60-180 hours | 60-150 hours beyond agent | Same as agent or broker |
| Experience needed | None | 2-3 years as agent | None beyond license |
| Median income (2025) | $54,300 | $78,000-$95,000 | Same as agent/broker role |
Income data from BLS Occupational Outlook Handbook and NAR 2025 Member Profile.
Do you need to be a Realtor?
This is a hot debate right now, especially after the 2024 NAR settlement. Some agents feel the dues are not worth the cost. Others say MLS access alone justifies it.
Arguments for joining NAR:
- •MLS access — in most markets, NAR membership is the easiest path to your local MLS
- •Consumer trust — buyers and sellers recognize the Realtor brand
- •Legal resources — NAR provides standard contracts, legal hotlines, and risk management tools
- •CE courses — some Realtor associations offer discounted or free CE courses to members
- •Designations — GRI, CRS, ABR and other credentials require NAR membership
Arguments against:
- •Dues are expensive — $600 to $1,000+ per year adds up, especially for part-time agents
- •Some MLSs now offer non-Realtor access for a separate fee
- •The NAR settlement has shaken confidence in the organization among some members
- •Not all consumers know or care about the Realtor designation
CE requirements differ by role
One thing all three titles share: continuing education is required to keep your license. But the hours can differ.
In most states, agents and brokers have the same CE hour requirement. But brokers sometimes need extra hours in management, supervision, or trust account handling. Realtors must also complete the NAR Code of Ethics course every 3 years — that is on top of state CE.
Check your state's CE requirements to see the exact hours, categories, and deadlines for your license type.
Which path should you choose?
If you are brand new, start as an agent. Build your skills. Close deals. Learn the business from inside a brokerage before worrying about broker licenses or NAR designations.
Stay as an agent if...
You are happy working under a broker, do not want to manage other agents, and want to focus on selling.
Get your broker license if...
You want to open your own firm, keep 100% of your commission, or manage a team of agents.
Join NAR if...
You need MLS access in your market, want the Realtor brand recognition, or plan to pursue designations like GRI or ABR.
Frequently asked questions
Can a Realtor call themselves a broker?
Only if they hold a broker license. Being a Realtor does not make you a broker. And being a broker does not make you a Realtor. They are separate credentials.
Is a Realtor better than a regular agent?
Not automatically. A Realtor has agreed to follow the NAR Code of Ethics, which includes standards around honesty, fairness, and professionalism. But skill level depends on the individual, not the title.
Do brokers make more money?
On average, yes. BLS data shows broker median income runs $78,000 to $95,000 versus $54,300 for agents. But top-producing agents can out-earn many brokers. Income depends on volume, market, and business model.
Can I switch from agent to broker later?
Yes. Most agents who want a broker license get their required experience (usually 2-3 years), complete the extra education, and pass the broker exam. You do not lose your agent transactions or history.
What is an associate broker?
Someone who earned a broker license but works under another broker instead of opening their own firm. They have broker credentials but operate like an agent within a brokerage.
Track your CE no matter your title
Whether you are an agent, broker, or Realtor, you need to keep up with CE. Every state has different rules. Every license type has different categories. Missing a deadline costs money and can shut down your business.
AgentCE tracks your CE hours, shows your category breakdown, and sends you reminders before your deadline. It is free and works in all 50 states.
Check your state CE requirements to see what you owe this cycle. Read our guide on how to renew your real estate license when renewal time comes. And if you are thinking about upgrading to a broker license, start by knocking out your CE first.