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How to calculate the amount of realtor’ s fee in Japan

How to calculate the amount of realtor’ s fee in Japan

In this page, I will explain about how to calculate the amount of realtor’s fee in Japan. When you purchase property in Japan, you will search real estate through website. Or if you are already in Japan, you will go to real estate company in your neighborhood. There are a lot of information there. You will tell your demand to them and they will try to find suitable property for you. If they find nice real estate, you will order them intermediation with seller. The realtor will make sales contract and other necessary documents for buyer and seller. At the closing date, you will pay sales amount to seller (Let’s say it is $400,000) and fee for realtor. “Flow chart of real estate transaction in Japan

Calculation of Realtor’s fee in Japan

Fee for realtor is ( 3% of sale price + $600 ) × 1.08 ( consumption tax ). So, when sale price is $400,000, fee for realtor is about $13,000. ( in this website, $1=Yen 100 )
sales amount calculation formula (  Excluding consumption tax )
more than 4 million yen    sales amount  × 3 % + 60,000 yen
more than 2 million yen, less than 4 million yen   sales amount  × 4 % + 20,000 yen
less than 2 million yen   sales amount  × 5 %
Though, this is maximum amount of fee stipulated in Law, most of realtor will charge you this amount. Especially in the case of large, famous real estate company will not discount this amount.

As for cost of advertising

When you order realtor to find potential buyer of your real estate in Japan, some realtor will charge you cost of advertising. In the case of small realtor, even if they have own website to find buyer, it is not attract potential buyer. So, in that case, the realtor will advertise your real estate on famous website like Yahoo. In that case, the realtor will try to charge some cost for you. But, the realtor can charge such money as long as you order the realtor to advertise your real estate in such way. And the realtor can charge you only actual expense to advertise your real estate. If the realtor fails to comply this regulation, she will be sentenced to fine or / and penal servitude.

Fee in the case you ask realtor to be your proxy.

When you can not participate in real estate transaction in person, for example you are not in Japan, you need to ask someone to participate in the transaction. If you can not find anyone who can participate in the transaction on behalf of you, you can ask the realtor to be your proxy. In that case, the realtor can sign the sales contract, receive sales price from buyer on behalf of you. And in this case, the realtor can receive double amount of her regular fee. For example, the sales price is 1,000,000 yen, Fee for intermediation is  1,000,000 yen × 3 % + 60,000 yen = 90,000 yen. Fee for being your proxy is 1,000,000 yen × 3 % + 60,000 yen = 90,000 yen. In total, 90,000 yen +  90,000 yen = 180,000 yen

I can participate in meeting with Buyer, Seller

When some clients purchase or sale a real estate in Japan, they order me to become their agent. Because some of them are not in Japan and hesitate to come to Japan just to participate in real estate transaction. So, as far as they hire me as Judicial Scrivener, I can participate in the closing date as their agent. Closing date (Kessaibi): date when buyer of real estate pays purchase money to seller.

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