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Realtor’s fee in real estate transaction in Japan

How to save realtor’s fee in Japan

Assumed that you have found your favorite real estate.

Then you are going to hire realtor to buy the real estate.

But, I let you know about system of real estate company in Japan.

I want you know that you can purchase real estate in Japan without hiring realtor.

In this way, you can save large amount of money.

Realtor can receive fee from both of seller and buyer.

And it is possible that buyer and seller use same realtor as their agent.

Most of cases, the owner of real estate will go to real estate company and ask realtor to find a buyer of his/her real estate.

And owner sign the contract to pay fee for realtor.

Then realtor advertise the real estate to find a buyer.

And finally, you have found the advertising and become a buyer.

You contact the realtor and sign the contract like the seller.

The amount of their fee is about  ( 3% of sales price + $600 ) × 1.08 ( consumption tax ).

So, if the sales price is $300,000,  realtor can receive $20,000.
( $10,000 from seller +$10,000 from buyer )

Or, buy and seller can appoint different realtor as an agent.

These amounts of fees are principle.

So, a client could ask for reduction in price.

But it is not common in Japan.

In most of flyers, advertisements, there is not description of their fee.

This is ridiculous situation compared to other business in Japan.

But unfortunately, most of realtors, especially large real estate company will not accept reduction in their fee.

But, there are some advanced real estate companies that accept reduction in their fee and I can introduce them to you.

Of course, if you hire realtor as your agent, they will guide you to real estate, explain detailed information, introduce banking company, introduce judicial scrivener, but you should consider whether it worth to pay this fee or not.

And actually some people complete real estate transaction without hiring realtor.