Real Estate: The Difference between Project Selling and General Brokerage:

Project Selling:

  • In-house agents
  1. Generally, with allowance, others don’t have
  2. Usually with sales quota
  3. No employer-employee relationship but acts like an employee
  4. Free office facilities
  5. Tied by contract of agency may mean forfeiture of commission receivables
  6. Work is just to sell, documentation and transfer of titles is done by the developer
  7. Commission is usually paid
  8. Upon full down payment for lot only, usually termed as paid-up scale
  • Accredited brokers of Developers
  1. No salary nor allowance from developer
  2. Generally, higher commission rate than in-house agents (5% and up)
  3. Exclusive brokers get higher rate of commission (from 5%-10%)
  4. Generally, no sales quota except exclusive brokers
  5. No employer-employee relationship, acts as free agent
  6. Maintain their own offices (at their expense) majority in their own residences
  7. Not tied by contract of agency-with more freedom than in-house agents
  8. Can sell other properties of other developers
  9. Work is just to sell
  10. Documentation and registration is done by the developer


General Brokerage

  • Sellers are usually not developers
  • Lots of freedom, can sell or lease any real estate property
  • Agents, generally, do the documentation and registration for the buyer and seller
  • Maintain their own offices, usually in their own residence
  • Commission is usually given upon full payment of purchase price
  • Commission rates range from 3% to 5% (if percentage listing)
  • Brokers here are generally more experienced than in-house agents in terms of general knowledge in real estate, especially in documentation and registration procedures-they are more exposed to BIR, Assessor’s office and Register of Deeds


Advice for beginners:

Try project selling first

  • To know the trade
  • To get networks
  • To associate yourselves with producers and veterans-they are inspirations
  • Don’t stop learning the real estate practice and business, as well


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