For those of you considering selling your real estate, choosing the best method of sale is an important decision that will greatly affect the sale price and time frame. There are multiple ways to sell a house or condominium, each with its own characteristics, advantages and disadvantages.
In this article, we will explain in detail the latest real estate sale methods in 2025, based on our experience in supporting numerous real estate sales as INA & Associates, Inc. We will thoroughly compare the four main methods of sale - agency, purchase, voluntary sale, and leaseback - and suggest the best option for your situation.
Selling real estate is one of the most important decisions you will make in your life. With proper knowledge and preparation, you can achieve better results. Please read to the end of this article to learn more about how we can help you succeed in selling your property.
There are four main ways to sell real estate. The first step to success is to understand the characteristics of each and select the method best suited to your situation.
Mediation is the most common real estate sales method. A real estate company enters between the seller and the buyer and supports the conclusion of a sales contract.
The greatest merit of sale by agency is that sale at a price close to the market price can be expected. Since a real estate company recruits buyers widely, there is a possibility that the best conditions can be selected from several purchase applicants.
In addition, since real estate professionals conduct sales activities on behalf of the seller, the seller's burden can be reduced. Professional duties such as planning sales strategies that maximize the appeal of the property, support for handling previews, and preparation of contract documents can be entrusted to them.
On the other hand, there is a demerit that it takes time to sell by intermediary. Generally, it takes from three to six months to complete the sale, and it may take even longer depending on market conditions.
In addition, a brokerage fee is charged. If the sales price exceeds 4 million yen, the maximum amount is "(sales price x 3% + 60,000 yen) + consumption tax. For example, when it sells off for 30 million yen, a mediating fee will be 1,056,000 yen (including tax).
When mediation is requested, a mediation contract must be concluded. There are the following three types of mediation contracts.
| Contract type | Request to two or more companies | Self-discovery dealings | Reporting duty | Contract term |
|---|---|---|---|---|
| Under-exclusive-contract exclusive duty mediation | Not possible | Not possible | More than once a week | Within 3 months |
| Full-time mediation | Not possible | Possible | More than once every two weeks | Within 3 months |
| General mediation | Possible | Possible | No legal obligation | Within 3 months |
Purchase is a method in which a real estate company directly purchases a housing. Unlike agency, there is no need to search for a general buyer.
The greatest merit of purchase is the shortness of the sale period. It is possible to complete the process from appraisal to completion of sale in about one week at the earliest. This is suitable for sellers who place importance on speed, such as in cases of sudden transfers or when financing is required.
Another major advantage is that there is no need for a brokerage fee. Since the real estate company purchases the property directly, no brokerage work is required and no commission is paid.
Furthermore, in many cases, liability for contractual non-conformity is exempted, reducing the risk of trouble after the sale.
The main disadvantage of purchase is that the sale price is lower than the market price. Generally, it often becomes about 70% to 80% of a market price, and a sale price is lowered when compared with sale by agency.
A voluntary sale is a method of sale that is conducted with the agreement of a financial institution when repayment of a mortgage loan becomes difficult.
The greatest merit of a voluntary sale is that an auction can be avoided. Compared to an auction, a sale at a higher price can be expected, and the remaining debt can be reduced.
In addition, it is possible to adjust the timing and conditions of the sale to some extent. Consultation on the timing of the move and, in some cases, the raising of moving expenses can also be expected.
In order to conduct a voluntary sale, the consent of the financial institution is required. It may also affect your credit report, which may limit your ability to borrow in the future.
A leaseback is a method in which the property is sold and then continued to be rented by the buyer as a lease.
The biggest advantage of a leaseback is the ability to raise funds while continuing to live in the property. You can continue to live in the same property while obtaining cash from the sale.
It may also be possible to repurchase the property in the future, and can be used as a temporary financing method.
The disadvantage of a leaseback is that you will have to pay rent. In addition, the purchase price tends to be lower than the market price, which may result in a greater financial burden in the long run.
| Item | Mediation | Purchase | Voluntary sale | Lease back |
|---|---|---|---|---|
| Sale price | High (market price) | Low (70-80% of market price) | Medium | Low |
| Sale Period | 3-6 months | 1 week-1 month | 3-6 months | 1-2 months |
| Brokerage Fee | Required | Not required | Necessary | Not required |
| Applicable Conditions | General | General | Loan in arrears | Special Circumstances |
| Continuation of residence | Not possible | Not possible | Not possible | Possible |
The choice of real estate sales method depends on the seller's situation and priorities. Please refer to the following points to select the best method.
If you can spend sufficient time on the sale, we recommend selling by intermediary. You can expect to sell at a price close to the market price, and you can select the best conditions from multiple potential buyers.
In particular, if the property is in a good location or is young, you may be able to achieve a higher price by selling through intermediary.
When you want to sell it in a hurry, such as a transfer or the necessity of fund-raising, purchase is suitable. It can be completed in a short period of time from the appraisal to the completion of the sale, and can certainly be converted into cash.
However, it is important to choose this option with the understanding that the sale price will be lower than the market price.
If you have difficulty repaying your mortgage, consider a voluntary sale. It is possible to avoid an auction and sell the property under better conditions.
It is important to consult with a specialist and start negotiations with financial institutions as soon as possible.
If you want to raise funds through a sale but wish to continue to live in the property, consider a leaseback. However, it is necessary to fully consider the long-term economic viability.
Various costs and taxes are incurred in the sale of real estate. It is important to understand them in advance and make an appropriate financial plan.
In the case of sale by agency, a mediating fee is paid to the real estate company. The maximum amount set by law is as follows.
| Sales price | Mediating fee upper limit |
|---|---|
| Less than 2 million yen | Sales price × 5% + consumption tax |
| Over 2 million yen to 4 million yen or less | Sales price x 4% + 20,000 yen + consumption tax |
| Over 4 million yen | Sales price x 3% + 60,000 yen + consumption tax |
When a profit (transfer income) is generated from the sale of real estate, transfer income tax is imposed.
Formula for transfer income
Transfer income = transfer price - (acquisition cost + transfer expenses)
The transfer income tax rate varies depending on the period of ownership of the property.
| Period of ownership | Income tax rate | Residential tax rate | Special Reconstruction Income Tax | Total tax rate |
|---|---|---|---|---|
| Less than 5 years (short-term) | 30% (short-term) | 9％ (short term) | 0.63％ (0.63%) | 39.63％ (0.63%) |
| Over 5 years (long-term) | 15% 5 | 5% 0.315% 0.315% 0.315% 0.315% 0.315% 0.315 | 0.315% 20.315 | 20.315% Special deduction |
A special deduction of 30 million yen is available for the sale of residential property. This deduction allows you to deduct 30 million yen from your transfer income, reducing your tax burden in many cases.
For residential property owned for more than 10 years, a special reduced tax rate can be applied.
It is important to accurately grasp the market price and set an appropriate selling price. Setting a price that is too high will prolong the selling period, while setting a price that is too low will lead to a loss.
Obtain appraisals from multiple real estate companies and set prices based on market trends.
In order to make a good impression when viewing the property, please pay attention to the following points.
The success of a real estate sale depends on the selection of a real estate company to be your partner. Please check the following points before making your choice.
In order to facilitate the sale, please prepare the following documents in advance.
There are four main methods of real estate sale: agency, purchase, voluntary sale, and leaseback. Each has its own characteristics, and it is important to select the best method according to the seller's situation and priorities.
Mediation is suitable when aiming at sale at a high price over time, and purchase is effective when wanting to sell off surely in a hurry. Voluntary sale is an option when it is difficult to repay the mortgage, and leaseback can be considered when you want to raise funds while continuing to live in the house.
For a successful real estate sale, it is important to set an appropriate price, improve the attractiveness of the property, select a reliable real estate agency, and prepare the necessary documents. It is also essential to know in advance the costs and taxes involved in the sale and to have an appropriate financial plan in place.
Selling real estate is an important life decision. We recommend that you gather sufficient information and preparation, and proceed with professional advice.
As a next step, start by obtaining appraisals from multiple real estate companies to determine the current market value. With proper preparation and strategy, you should be able to achieve a satisfactory sale result.
A1. It depends greatly on the method of sale. In the case of sale by agency, it generally takes from 3 to 6 months. In the case of purchase, it can be completed in about one week to one month. Since the time period varies depending on market conditions and the condition of the property, we recommend that you schedule your transaction well in advance.
A2. Major costs include stamp tax, registration and license tax, judicial scrivener's fee, surveying fee, and house cleaning fee. In addition, if transfer income is generated, transfer income tax will also be imposed. We recommend that you expect to pay 5% to 10% of the sale price as miscellaneous expenses.
A3. Yes, it is possible. If the loan can be paid off with the proceeds from the sale, we will follow normal sales procedures. If the loan cannot be paid off with the proceeds from the sale, the deficiency will be made up with personal funds or a voluntary sale will be considered. We recommend that you consult with your financial institution in advance.
A4. Generally, spring (February to April) and fall (September to November) are the times when real estate transactions are most active. However, the optimal time varies depending on market conditions and personal circumstances. It is important to make a comprehensive decision, taking into consideration the conditions under which special tax exemptions apply.
A5. Yes, we recommend that you request an appraisal from multiple real estate companies. By comparing appraisal prices and proposals, you can make a more appropriate decision. However, it is practical to limit the number of companies to about 3 to 5, since it will be difficult to deal with too many companies if you request too many companies.