Flow of Selling Property
Ask a real estate company to do assessment on your property
Ask your real estate agent to assess your property and see how much it could sell for.
Know Handling Fee
Some real estate company gives you a discount on brokerage fees or even wave the fees lately. It’s one of the good ways to sort out your selection of agents.
Making a brokerage service agreement with real estate agent
Once you decide a real estate agent, then you make a brokerage service agreement to actually sell your property.
There are three types of brokerage agreement; Non-Exclusive Brokerage Service Agreement, Exclusive Brokerage Service Agreement, and Privileged and Exclusive Brokerage Service Agreement.
Which type of agreement has the highest possibility to sell?
・Non-Exclusive is the best because you make agreement with multiple companies?
It seems like Non-Exclusive has the highest possibility to sell your property. However, a real estate company has no responsibility whether your property sells or not. Also if another company sells the property, they don’t get the brokerage fee and don’t make any money. Therefore, they don’t really make huge effort to market with lots of advertising costs. The truth is they don’t really do anything to sell. Non-Exclusive is not recommended.
・ Privileged and Exclusive Brokerage Service Agreement is the most favorable to real estate agent.
Even if a seller finds his own customer after signing the agreement with the agent, he can’t make a sales contract with the customer without going through the agent. Therefore, if your property sells, they make profit. They prefer this type of brokerage agreement and try to sell faster.
・Listing your property on REINS is equivalent to making brokerage agreement to ALL real estate agents.
If you make either Exclusive or Privileged and Exclusive agreement, a real estate company must list your property on REINS. Having your property listed on REINS means the property information is now public to ALL the real estate companies throughout Japan. Other company needs to find a customer who wants to purchase so that they can get a brokerage fee from the buyer. Therefore, signing either brokerage agreement is equivalent to signing with all other companies in a sense.
You need to tell your agent all the information about the property you are trying sell beforehand. Especially defects (cracks, damages, flaws, or mortgage) need to be stated on the Important Matter document to avoid any troubles. If you don’t disclose, you might get in a trouble of being sued or canceling the contract legally.
Negotiating with potential buyer
If a potential buyer shows up, now you need to negotiate.
Sales price is important but make sure what you can back down and what not.
Signing Sales Contract
Once you negotiate with a buyer and succeed, now you can finally make a sales contract. Both party need to sign and stamp on the document. When the sales price is determined, brokerage fees and amount of tax will also be decided.
Settlement ・Transfer Ownership
If the property has a mortgage set to it, it needs to settle.
Once all it’s done and you receive the rest of money, then finally it all comes to an end.
In order to go to the Legal Affairs Bureau to register, it’s best to do the settle meant in the morning.
In general, settlement and transfer take place at the same time.