Partnering up with an expert real estate agent who knows the local housing market is vital whether you’re selling a loft in a downtown neighborhood, a condo or townhouse in a retirement community, or a single-family home in the suburbs. But sometimes, sellers need to go a step further and hire specific types of real estate agents who know specific kinds of properties, housing laws, and the best practices for marketing to niche buyers such as a luxury market.
We’ve talked to a top agent and dug into the research to introduce you to different types of real estate agents.
Connect with a Top Agent
Whether buying or selling a hope, working with a top agent that specializing in your particular type of real estate can be hugely beneficial.
What is a real estate agent?
A real estate agent is a licensed professional who represents buyers and sellers throughout the entire real estate transaction process. They gather market data, manage legal documents, negotiate, and facilitate real estate deals so a sale can take place.
In return for their services, real estate agents receive commissions from the proceeds of the sale at closing. The work agents do can add significant value to a home sale. According to data from the National Association of Realtors, agent-assisted sales in 2023 sold for a median price of $435,000, compared to only $380,000 for homes sold by owner.
What is a Realtor?
A Realtor is not exactly the same as a real estate agent, though they’re similar, and many people use the terms interchangeably in everyday life.
Realtors are typically licensed real estate agents and professionals who are official members of the National Association of Realtors (NAR) and subscribe to the Code of Ethics & Standards of Practice, designed to ensure that real estate professionals serve the best interests of their clients.
“As a Realtor, you adhere to NAR’s code of ethics and hold [yourself accountable] to standards and higher fiduciary duties to your client, [for example,] more ethical rules, regulations, and standards,” explains top agent Miranda Biedenharn, who works with 76% more single-family homes than the average Dayton, Ohio agent.
Out of the roughly three million real estate agents in the U.S., about 1.5 million are registered Realtors. Florida has more Realtors than any other state, totaling 225,563. California is a close second with 204,678.
What is a real estate broker?
When an experienced real estate agent wishes to take their licensure to the next level, they may apply for their broker’s license, which requires additional training and passing an examination. Real estate brokers can manage sales agents or open their own [brokerages], says Biedenharn.
“Brokers are held to a higher standard as far as their knowledge base and what could be expected of them in different scenarios, ” Biedenharn says. Agents often turn to their brokers to answer complicated legal and industry questions.
Managing brokers receive a percentage of agent real estate commission. Historically, the seller usually covered agent fees — typically around 6% of the sale price. These are paid to their listing agent, also known as the seller’s agent, which then gets split with the buyer’s agent, usually in half. The listing agent will also pay the broker out of their remaining commission amount, sometimes up to half, after paying the buyer’s agent.
However, after the landmark lawsuit settlement by the NAR, agent fees have been decoupled. Instead of sellers covering the buyer’s agent fee, the buyers are expected to directly negotiate with their agent’s fees. This shift has made commission structures more flexible, but brokers still receive their share from the agent’s earnings.
Some sellers still feel the need to cover the buyer’s agent commission to attract buyers or expedite a home sale. Meanwhile, agents and brokers are adjusting to the changing landscape, with some offering new commission models to stay competitive.
Types of real estate agents
When real estate agents begin their careers, they may start out as generalists and later decide to hone in on a particular niche within real estate. The following NAR designations and certifications train agents in specific areas of expertise.
Real estate designations
1. Seller Representative Specialist (SRS)
The SRS designation provides a comprehensive foundation framework of training, skill development, and resources necessary to represent the interests of sellers in the marketplace. The designation can help real estate agents by:
- Increasing selling performance and generating more listings
- Applying the Code of Ethics & Standards to their business
- Learning methods, techniques, and tools that help sellers
2. Accredited Buyer’s Representative / ABR®
The ABR® certification teaches real estate agents how to identify the needs of buyers and how to bring the real estate transaction to a successful close. The certification provides agents access to research, instruction, and valuable resources that help participants:
- Communicate their value to buyers
- Negotiate offers for buyers
- Bring transactions to a successful close
3. Certified Residential Specialist (CRS)
According to the NAR, the CRS Designation is the highest credential awarded to residential real estate professionals and can help agents triple their earnings, gross sales, and transaction numbers compared to Realtors without the designation.
To earn a CRS designation, agents must complete rigorous coursework, meet specific sales requirements, and maintain active membership in the Residential Real Estate Council (RRC).
4. NAR’s Green Designation
This designation teaches agents how to gain a competitive edge when marketing green homes. Agents learn how green properties are marketed differently than traditional homes. Green issues, research, and resources covered include how energy-efficient and sustainable features impact real estate.
5. Seniors Real Estate Specialist (SRES)
The SRES® designation was created for real estate agents desiring to sell homes in age-restricted communities. Professionals study buying, selling, relocation, and refinancing for residential and investment properties.
Senior Real Estate Specialist candidates learn how to help seniors prepare for life-changing decisions and issues related to real estate, such as pensions, retirement, and loan fraud.
NAR real estate certifications
The NAR also offers certifications. The difference between designations and certifications is that certifications require annual dues and an application fee, while designations don’t.
- At Home With Diversity® (AHWD): The AHWD certification concentrates on issues concerning multicultural populations, including diversity sensitivity, U.S. fair housing laws, and professional guidelines in a growing multicultural real estate market.
- Luxury Homes Certification (LHC): The Luxury Homes Certification teaches agents how to sharpen their skills and prepare for the evolving luxury home market. The certification covers the luxury niche, pricing strategies, negotiation tactics, and how to distinguish oneself from other professionals.
- Military Relocation Professional (MRP): The MRP certification prepares agents to work with military professionals. Coursework focuses on VA financing, procedures, and decision-making processes associated with military relocation and housing options.
- Resort & Second-Home Property Specialist (RSPS): The RSPS certification was designed for real estate agents representing clients interested in purchasing and selling second homes and resort properties. Clients might include retirees, vacationers, managers, and investors.
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