Realtor vs. Real Estate Agent: What You Are Really Hiring

Here’s a glimpse of what you’ll learn: 

• The real difference between a Realtor and a licensed real estate agent
• Why more agents are leaving the real estate industry
• What Realtor membership actually means and whether it benefits consumers
• Why buyers should think twice before signing exclusive representation agreements
• The hidden purpose of open house sign-in sheets and lead-generation tactics
• How real estate coaching and sales scripts are designed to influence consumers
• What buyers should look for when evaluating an agent’s value, service, and fees

In this episode with Fred Glick

Did you know the word “realtor” is one of the most misused terms in real estate, and agents are counting on you not knowing the difference?

In this episode, Fred Glick of Arrivva breaks down one of real estate’s most misunderstood terms and what it actually costs you. From inflated commissions to pressure tactics at open houses, Fred pulls back the curtain on the industry’s biggest myths so you can make smarter, more confident decisions as a buyer or seller.

Resources mentioned in this episode

• Fred Glick on LinkedIn
• Arrivva

EPISODE TRANSCRIPT

Drew Hendricks (00:00)

Drew Hendricks and Fred Glick here on another episode of We Fixed Real Estate. Today we’ve got a very tightly focused podcast for you. We’re going deep into the term realtor.

Fred Glick (00:12)

I have a little cold and when you know I don’t have anything to blow my nose with, I go over to a person, I say, Hey, can I have a Kleenex?

What I really mean is can I have a tissue?

Same thing. Most people say, but most people have this thing in their head: I need to use a realtor to buy a house. What they’re saying is, I need to use a licensed real estate agent to buy a house. So let’s get this all out in the open. The word realtor.

Drew Hendricks (00:33)

Or a pandemic.

Fred Glick (00:54)

They’ve done a fantastic job of putting in your brain that anyone who sells real estate is a realtor. And guess what? That is a lie. It’s not true. Anyone with a license can become a realtor.

The realtors are called the National Association of Realtors. It is a trade organization, just like the National Rifle Association is a trade organization. Doesn’t mean everyone who has a gun is an NAR member. Same thing. And if you hear someone say, I am a licensed realtor, well, they’re completely 1000% incorrect.

They’re a licensed real estate agent, be it a salesperson, broker, in the state that issues them a license. NAR does not issue licenses. But people still agents use, I’m a licensed realtor. So you’re thinking anyone who can sell real estate is a realtor. And it’s so untrue.

Drew Hendricks (01:46)

Yeah.

Fred Glick (02:03)

Now to prove some of that, there was a Wall Street Journal article talking about the decline of real estate agents. The market is slowing in a lot of markets, and they’re quitting. They’re finally realizing that there’s only a certain amount of pie, there’s only a certain amount of agents. There are companies like us who do fixed fees. Because when you get recruited to be to get your license, something they don’t tell you.

I use Keller Williams as the perfect example because I know people who’ve been recruited by them. And the first thing they do is they tell the people how much money they can make. That’s what it’s all about. Come work with us and you’ll make more money. That’s not the idea, kids. It’s, you know, you want to go to a brokerage that’s gonna help you, it’s gonna teach you things, but the fact is that you’re still as a brand new agent.

Told that you’re charging the same commission as everyone else in the office, two and a half percent of the sale price, usually three percent, whatever it is. But so someone who’s been in the business for 40 years, knows what they’re doing, working for an agency like Keller Williams will charge two and a half percent, but somebody who just literally got their license today.

Is also charging two and a half percent. How does that make any sense? It doesn’t. And you know, people are getting out of the business because of people like us too. We’re charging a flat fee, which makes sense. I’ve had no one ever explain to me that charging by a percentage where the percentage amount was going to be higher than what I charge as a flat fee was worth it.

Drew Hendricks (03:41)

Mm-hmm.

Fred Glick (03:56)

They will say, well, you know, he has no incentive to get you the best price. Well, in fact, if you met with me and talked to me about selling your property, I’m gonna explain to you about the market and what we’re doing to get the best price. And that’s because

We’re a project manager in a marketing company that happens to have a license. It’s a big difference. These other companies, I’m licensed, I’m licensed, I’m a realtor, I’m a realtor. What does that mean? You know, it’s it’s show me. We had three sales last week, two of which were listings that closed, and we got five-star ratings on each. I mean, it’s just give us a chance, you know?

Drew Hendricks (04:37)

Those are really good. So here’s a question. I know being a ROTA is a trade organization. What are the requirements to join? Just pay your UO.

Fred Glick (04:41)

Yes.

Pay the money, have be licensed and pay the money. If you join a brokerage, let’s say Keller Williams, you’re gonna be required to become a realtor because the brokerage belongs to the realtors. So every agent comes on must join the realtors. And they do the same thing with the MLS. If you go to a brokerage, you have to join the MLS. You can’t opt out.

Drew Hendricks (04:59)

Okay.

Really.

So what’s the yearly fee for being, using the title, Realtor?

Fred Glick (05:19)

I don’t even know ’cause I haven’t been a realtor since like twenty twelve or something, way back like nah. No, I’m gonna say twenty fourteen. Because then I found they had no reason to do it. I used to be on the board of directors for the Philadelphia chapter of the Realtors. But you know, they have a yeah, they have a code of ethics, but they don’t follow it and they don’t enforce it.

Drew Hendricks (05:41)

Before you start what?

Fred Glick (05:48)

Every three years you’re supposed to take the same code of ethics training. But, you know, they’ve been involved with class action suits against them. They’ve paid out tons and tons of money. There’s more class action suits coming. So the fact that you’re a realtor isn’t not exactly a good thing nowadays. It has turned the tables completely ’cause they’ve proven the code of ethics didn’t work. So

We just do our thing. We just helping buyers and sellers, getting good ratings, doing good things.

working for a buyer seller, not doing dual agency, having non-exclusive agreements. And that’s another thing. These agents, no matter if they work one day in the business or 20 years, want you to sign an exclusive agency agreement with them the minute they meet you. Meaning for 90 days, which is the law in California, how long a contract could last, if you buy a property, you owe them a commission no matter if you use them or not. It’s ridiculous. Why would you sign

Do not, do not, do not, do not, do not sign an exclusive contract. I don’t care who it is, what it is, there is no reason to sign an exclusive. Because if you end up hating this person, you’re stuck. So, and there was actually an agent that sued someone in Florida and won a judgment against them because they didn’t use them for an offer they put in. Yes. So it’s real. So you do not, do not sign an exclusive agency.

Drew Hendricks (07:11)

So really.

So with Arriva, you sign a contract with, for you to help them buy a house or sell a house, but they could also just go.

Fred Glick (07:19)

Period.

I’m talking about buyers, buyer listing contracts different thing.

Drew Hendricks (07:30)

Just a buyer. A buyer. Yeah, if you take a listing contract, you don’t want two people selling your house.

Fred Glick (07:35)

No, no. I mean sometimes they have two agents from two different companies for some reason, but yeah, I don’t know. But for buying, yeah, you do not want to sign an exclusive agency agreement. So this kind of I just wanna get all the myths clarified so you understand what exactly you’re talking about. So realtor, exclusive two words you wanna just

Drew Hendricks (07:38)

Yeah, a team. But with a buyer, can…

Fred Glick (07:59)

There’s no reason to be impressed by realtors. It is real estate agent as the generic term and you don’t want to sign an exclusive agreement ever. There’s no reason to.

Drew Hendricks (08:09)

And that’s where the license, the real estate agents, what is the license part about it. Just like an attorney that has to take the bar exam.

Fred Glick (08:15)

Yeah.

Exactly. Exactly. And the other thing is when you go into an open house, they’re gonna want you to sign in. Do not sign in. There is absolutely one thousand percent no reason. Because all they’re gonna do is they’re there at the open house to try to find new buyers. Period. That’s all they’re there for. So just know that. You know, and just

Drew Hendricks (08:21)

Nothing.

Mm-hmm. It’s a legend.

I thought they were there to entertain nosy neighbors.

Fred Glick (08:44)

That too, but if you have to sign in if the well the seller the I get the excuse. the seller wants to know who’s coming to see their house. Yeah it’s an open house. Open means anybody. You know, so

Sign whatever you want. Sign Mickey Mouse, Richard Nixon, anything you want and make up an email. They’re not gonna check wh as you’re standing there or put in a different phone number. You know. Have a little fun with them. Prepare yourself with a really good evil eat fun email and a phone number of some place that they’re not gonna wanna really talk to, like a massage polar. I don’t know.

Drew Hendricks (09:06)

Just. Huh.

Fred Glick (09:32)

Just

Drew Hendricks (09:31)

You never know.

Fred Glick (09:33)

Yeah, never know. But yeah, non exclusive is the only way to go.

Drew Hendricks (09:38)

That’s good. And what happens if someone tells you that they only do exclusives?

Fred Glick (09:42)

Say sorry can’t work with you. See ya dude. If you don’t sign a non-exclusive with me, I’m not interested. They are coached by these real estate gurus on scripts.

On objections to things like this. But if you want to make sure that you have the best representation, do you want the best representation in America, then you really need to be exclusive with me because there’s no one else who’s going to be able to help you, blah, blah, blah, blah.

Drew Hendricks (10:00)

I like to see it.

Fred Glick (10:17)

You know what? For fun, I now have an intern. Another thing I can give her to do is go online and find these coaches that are on YouTube and find the most ridiculous ones of what they’re telling agents to tell buyers. And we can do what we can. That’ll be a good show. Yeah. I’m writing that one down, coach real estate coaches. Or you can go out yourself and find real estate coaches and

Drew Hendricks (10:30)

Well, that’ll be a problem, yeah. You should never do that.

There’s hundreds. There’s hundreds of them on YouTube. you got locally here, we got Buffini and Co. That’s a big sale. He is.

Fred Glick (10:45)

I know. He’s national. He’s one of the big gurus, yeah. yeah. His father was there’s this like father son thing that’s been going on for thirty years. It’s pathetic. It’s absolutely pathetic. But all they’re trying to do is manipulate the consumer.

So please people, they’re they’re they’re not right. They’re just not right. They’re there to manipulate you and get two and a half, three percent out of you. That’s all. We haven’t changed our buyer broker fee or listing fee for years. I mean, I really should. Yeah, I really should, but

Drew Hendricks (11:22)

Yeah, I think it’s really four or five.

Fred Glick (11:27)

You know, it just makes sense. It’s four digits for our buyer fee, and you know, especially when you see five digits, it’s probably ugly. They’re not worth it. No agent is worth that kind of money. Compare that to what an engineer makes, a doctor makes. You know, the real estate agents are not in the same capacity.

Drew Hendricks (11:50)

Well, the good ones, I mean, you gotta find a good one and you gotta know what you’re paying for.

Fred Glick (11:55)

Exactly. Exactly. So remember the next time you ask for a Kleenex, you’re asking for a tissue.

Drew Hendricks (12:03)

Yep, or a bandaid you’re asking for a bandage.

Fred Glick (12:09)

I don’t know. Exactly. But when you’re asking for a realtor, you’re asking for a real estate agent.

Drew Hendricks (12:15)

Word of wisdom. Well, on that note, this has been a short, focused podcast on the term realtor and what you’re really buying or hiring. Anyways, that’s it.

Fred Glick (12:30)

He screws up the end of this all the time, so just arrivva.com kids.