Two ways to sell: chukai (brokerage) or baitori (buyout)
In Japan, selling runs along two main routes that you must choose up front, because they follow very different price and timeline logic.
Brokerage (chukai)
Brokerage (chukai, 仲介, intermediation) is the classic route: an agency puts your property on the market, finds an individual buyer and secures the market price. In return, it takes longer (often 3 to 6 months) and you pay a legally capped commission. It is the default, and the one that maximises net proceeds in the vast majority of cases.
Direct buyout (baitori)
Direct buyout (baitori, 買取) means selling to a real-estate company that buys for its own account, usually to renovate and resell. Upsides: speed (days to weeks), no viewings to arrange, confidentiality, and defect liability taken on by the buyer (see our piece on hidden defects kashi tanpo). Major downside: the buyout price is typically around 70 to 80% of market value.
| Criterion | Brokerage chukai | Buyout baitori |
|---|---|---|
| Price achieved | Market price (100%) | ≈ 70-80% of market |
| Typical timeline | 3 to 6 months | Days to weeks |
| Agency commission | Yes (≈ 3.3% incl. tax) | Often none |
| Viewings (naiken) | Required | None |
| Best for | Maximising net price | Selling fast / tricky asset |
Expert tip: always request both a brokerage appraisal and a buyout offer. The gap between the two tells you exactly what "selling fast" costs, and lets you decide with eyes open.
The 7 steps of a resale (baikyaku), from satei to kessai
A resale (baikyaku, 売却, transfer) unfolds in seven clear steps. Knowing them avoids nasty surprises and keeps your calendar realistic.
- Appraisal (satei, 査定) — the agency values the property, first on paper (kijō satei, desktop appraisal) then on site (hōmon satei, visit appraisal). Compare at least two or three.
- Mandate (baikai keiyaku, 媒介keiyaku) — you sign a listing contract with the agency (see the three types below).
- Marketing — the property is published on the portals (SUUMO, HOME'S, at home) and registered on REINS (reinzu, レインズ), the official inter-agency network.
- Viewings (naiken, naiken) — buyers visit; a tidy, bright home sells better and faster.
- Offer and negotiation — the buyer submits a letter of intent (kaitsuke shōmeisho, kaitsuke証明書) with a price; you negotiate.
- Sale contract (baibai keiyaku, baibai keiyaku) — signing, a deposit (tetsuke, 手付金, often 5 to 10%), and the buyer's reading of the legal disclosure (jūyō jikō setsumei).
- Settlement and handover (kessai, kessai / hikiwatashi, 引渡し) — payment of the balance, release of any mortgage, title transfer registered by the shihō shoshi, keys handed over.
The shihō shoshi (shihō shoshi, registration lawyer) secures the title transfer on settlement day: they confirm that money and ownership change hands simultaneously.
Choosing your mandate: the 3 baikai keiyaku types and REINS
The mandate (baikai keiyaku, 媒介keiyaku) you sign decides whether you may list with several agencies, how often the agency must report to you, and how quickly it must register the property on REINS.
| Mandate type | Number of agencies | REINS listing | Reporting | Sell it yourself |
|---|---|---|---|---|
| Non-exclusive (ippan, ippan媒介) | Several | Optional | Not required | Allowed |
| Exclusive (sennin, 専任媒介) | One only | Within 7 business days | Every 14 days | Allowed |
| Sole exclusive (senzoku sennin, 専属専任) | One only | Within 5 business days | Every 7 days | Not allowed |
Which to choose?
The exclusive mandate (sennin) is the best compromise in most cases: one motivated agency that reports regularly, with fast REINS registration for maximum visibility, while still letting you sell to a buyer you found yourself. A non-exclusive mandate can suit a highly sought-after asset in a big city; it does, however, dilute accountability and follow-up.
Common mistake to avoid: listing with five agencies thinking it will "go faster." In practice none commits fully, unsure of earning the commission. A solid exclusive mandate with a serious agency often sells faster and for more.
What does a resale cost? Every seller's expense
The seller bears several costs, the heaviest being the agency commission. In total, budget around 4 to 6% of the sale price, excluding any capital-gains tax.
Agency commission (legally capped)
The takuchi tatemono torihiki gyō-hō (takuchi tatemono torihiki gyō-hō, Real Estate Transaction Act) caps the brokerage commission. For a price above ¥4,000,000, the formula is 3% of the price + ¥60,000, plus 10% consumption tax — about 3.3% incl. tax. Since 1 July 2024, a special regime allows a commission capped at ¥330,000 incl. tax for low-value properties (≤ ¥8,000,000, typically akiya).
| Cost item | Indicative amount | Note |
|---|---|---|
| Agency commission | ≈ 3.3% incl. tax of price | The main item |
| Stamp duty (inshizei) | ¥10,000 (¥10-50M) ; ¥30,000 (¥50-100M) | Reduced rate until 31/03/2027 |
| Mortgage release (teitōken masshō) | ≈ ¥1,000/title + shihō shoshi fee | If the property was financed |
| Property-tax proration | Variable | Split pro rata with the buyer |
| Survey / demolition (if any) | By quote | Land to survey, old building to demolish |
| Capital-gains tax | ≈ 20% or 39% | Depends on holding period |
Worked example
Reselling a Tokyo mansion apartment at ¥55,000,000 (≈ €367,000), held 8 years, mortgage-free:
- Commission: 55M × 3% + 60,000 = ¥1,710,000, + 10% tax = ¥1,881,000 (≈ €12,500).
- Stamp duty: ¥30,000 (¥50-100M band, reduced rate).
- Capital gains: held > 5 years (long term, ≈ 20.315%); on an illustrative taxable base of ≈ ¥11M, the tax comes to about ¥2,200,000 (≈ €14,700).
Estimated net proceeds: ≈ ¥50,900,000 (≈ €339,000). Model your own case with our simulator before setting a price.
Resale tax: capital gains and the 5-year timing
A resale triggers tax on the capital gain (jōto shotoku, jōto shotoku, transfer income) when the sale price exceeds the acquisition cost net of depreciation. The rate depends solely on the holding period.
- Held ≤ 5 years (short term): ≈ 39.63%.
- Held > 5 years (long term): ≈ 20.315%.
The 5-year count is not measured date to date, but to 1 January of the year of sale — a costly trap. The full mechanics (calculating the jōto shotoku, the depreciation effect, the ¥30,000,000 primary-residence deduction) are detailed in our dedicated article: capital gains tax on property in Japan.
Legally reducing the gain
Keep every invoice from the purchase (commission, taxes, purchase costs) and from works: they raise the acquisition cost used in the calculation and cut the taxable gain accordingly. Without proof of the original price, the authorities allow only a flat 5% — usually very unfavourable.
If you rented the property, also settle the current-year rental-income tax and property tax cleanly, prorated with the buyer at settlement.
Selling from abroad: non-resident, tax agent, power of attorney
A non-resident owner can resell a Japanese property without travelling, just as they could buy without a visa. Three points deserve special care.
Tax agent (nozei kanrinin)
The non-resident must appoint a tax agent in Japan (nōzei kanrinin, nōzei kanrinin) to handle the return (kakutei shinkoku, kakutei shinkoku) and pay the capital-gains tax. This can be a tax accountant (zeirishi, zeirishi).
10.21% withholding at source
When the seller is a non-resident, the buyer in principle withholds 10.21% of the sale price (gensen chōshū, gensen chōshū) and remits it to the tax office. This is not the final tax: it is an advance, reconciled in the return, with any overpayment refunded. A low-value sale to an individual who will occupy the home can be exempt.
Power of attorney and remote signing
The contract and settlement can be done by power of attorney (ininjō, ininjō) in favour of your representative, with the required notarised and legalised documents. A good bilingual contact coordinates agency, shihō shoshi and bank. That is exactly what our support service covers, from listing to repatriating the funds.
Setting the right asking price: the strategy that matters
The asking price is the decision that weighs most on the outcome. A fair price from day one attracts buyers while the listing is at its most visible; an inflated price scares them off and ages the property on the portals.
What to base the price on
| Reference | What it gives | Limit |
|---|---|---|
| REINS / portal comparables | Real prices of similar sold or listed properties | Few comparables outside the metros |
| Official land value (rosenka, rosenka) | The tax-office published land base | Often understates market value |
| Professional appraisal (satei) | On-the-ground view from several agencies | May be inflated to win the mandate |
The attention curve of the first 3 weeks
In Japan as elsewhere, a listing draws its peak interest in its first two to three weeks. If no offer comes by then, it is better to adjust the price in steps than to wait passively. Agree a revision schedule with your agency (for instance −3% at 4 weeks, −5% at 8 weeks with no response). A well-located property at the right price often sells to the first or second serious buyer.
Mind the psychological price and the charges
For a condominium apartment, high monthly charges (kanrihi, kanri-hi) and a repair fund (shūzen tsumitatekin, shūzen tsumitatekin) weigh on the price a buyer will accept: factor them in. A clear file on the charge history reassures buyers and speeds up the sale.
Common mistakes to avoid and expert advice
The classic pitfalls
- Selling just before the 5-year crossover: waiting for the following 1 January can almost halve the capital-gains tax.
- Overpricing the launch: an overpriced listing "burns" on the portals and ends up selling for less than a fair price set on day one.
- Neglecting home staging: tidying, decluttering and good lighting speed up the sale at little cost.
- Confusing buyout and brokerage: accepting a fast buyout offer without a market appraisal can cost 20 to 30% of the price.
- Losing the purchase invoices: without them the taxable gain balloons (the flat 5% rule).
Expert advice
1) Time your resale to a strong market: a weak yen and record tourism lift demand in metros and tourist areas. 2) Pick an exclusive mandate with a serious agency rather than scattering the listing. 3) Prepare the file upfront (title, plans, disclosures, charge history) for a smooth settlement. 4) Plan the FX and repatriation of funds back to euros.
Planning your exit well: the key takeaways
Selling property in Japan is a readable process for those who plan ahead: first choose between brokerage (market price, 3 to 6 months) and buyout (fast, 70-80% of price); sign an exclusive mandate for effective REINS exposure; budget 4 to 6% of seller's costs plus capital-gains tax; and watch the 5-year timing that flips the rate from ≈ 39% to ≈ 20%.
As a non-resident, you sell remotely via a tax agent and a power of attorney, mindful of the 10.21% withholding. The exit is part of the strategy from the moment you buy: a well-located property, near a station and shops, always resells better. Explore our hand-picked listings and supported projects, or have your resale modelled by our tailored support service.
Frequently asked questions
How long does it take to sell property in Japan?
Via brokerage (chukai), expect roughly 3 to 6 months from listing to handover, depending on location and price. Via direct buyout (baitori), the sale can close in days to weeks, but at a lower price (about 70 to 80% of market value).
What costs does the seller pay in Japan?
Mainly the agency commission (≈ 3.3% incl. tax for a price above ¥4M), stamp duty (inshizei, ¥10,000 to ¥30,000 at the reduced rate), mortgage release if the property was financed, and capital-gains tax. In total, roughly 4 to 6% of the price excluding the gain tax.
Can a non-resident sell property in Japan remotely?
Yes. They appoint a tax agent (nōzei kanrinin) for the return and tax, sign by power of attorney (ininjō), and the buyer withholds 10.21% at source, reconciled afterwards. A bilingual intermediary coordinates agency, shihō shoshi and bank end to end.
What is the maximum agency commission to sell?
The law (takuchi tatemono torihiki gyō-hō) caps it at 3% of the price + ¥60,000, plus 10% consumption tax, about 3.3% incl. tax for a price above ¥4M. Since July 2024, low-value properties (≤ ¥8M) fall under a special cap of ¥330,000 incl. tax.
Is it better to sell via brokerage or buyout?
Brokerage maximises net price (market value) but takes 3 to 6 months and costs a commission. Buyout is fast and viewing-free, but at 70-80% of price. Always get both appraisals: the gap tells you exactly what "selling fast" costs.
Which sale mandate should I choose in Japan?
The exclusive mandate (sennin baikai) is often the best compromise: one committed agency, REINS listing within 7 business days and reporting every 14 days, while still letting you sell to a buyer you found yourself. Non-exclusive dilutes the follow-up.
How do I reduce capital-gains tax on resale?
Wait until you exceed 5 years of holding (as of 1 January of the year of sale) to move from the short-term rate (≈ 39.63%) to long term (≈ 20.315%), and keep every purchase and works invoice to raise the acquisition cost. Without proof, only a flat 5% is allowed.
Official sources
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