Learn something new every day
More Info... by email
The term in-house means to conduct an operation or an activity within the company itself, instead of outsourcing the operation to other companies by paying them. Brokering and financing are some of the divisions or business activities that a firm keeps in-house by using its own employees. Technical support, accounting and payroll activities are also some of the operations that a firm can decide to get done in-house, along with an in-house sale of property.
Though some companies commonly outsource some of their divisions, other companies choose to keep these operations in-house for flexibility. Meanwhile, a good illustration for in-house transactions is an in-house sale. In-house sale is a sale wherein the listing broker brings the buyer to a closing table. In the in-house sale, there is only one broker involved, and no one is entitled to a share of the commission except for the broker and their agent.
The broker is the one who arranges dealings between a buyer and a seller, and gets a commission when the deal is partially or totally executed, depending upon their transaction. In other words, the broker is the mediator between both the seller, as well as the buyer. Their work is to look for a seller who is interested in selling their property and a buyer who is interested in buying. Their main purpose is the marketing of real estate plots for clients.
Furthermore, a broker guides the sellers for the effective marketing of their properties and then selling them to the right buyers at the best prices, according to the terms. Conversely, brokers are also responsible for guiding the buyers in purchasing a suitable property at reasonable rates and as per their terms. This happens when real estate brokers act as a buyer’s representative during the contract or deal. Meanwhile, if the contract has not been written and signed, then a real estate broker will guide the buyer during the purchase of the real estate but he will act as a representative of the seller and will take actions to serve his interests.
A real estate broker has salespersons called real estate agents. A real estate agent is a mediator whose work is to disclose to both the buyers and the sellers about who is representing whom. Meanwhile, professional real estate agents are those who are licensed. They either possess a salesperson’s license or a broker’s license. When a person wants to be a professional real estate agent, then they must acquire a property salesperson's license from the place where they wishes to work as a property seller. In order to acquire a real estate agent’s license, a person has to get into a recognized course and attend classes of up to 90 hours. This is followed by a real estate practice and law exam that must be qualified. To conduct an in-house sale, a salesperson must work under a real estate broker and also act under the authority of this broker.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!