INA Wealth Vision | Japan Luxury Realty Group

Expert Guide to Successfully Selling Your Condominium

Written by Daisuke Inazawa | Jul 16, 2025 11:36:15 PM

Selling a condominium is an important transaction that many people experience only a few times in their lives.

Proceeding without proper knowledge and preparation can lead to regrettable results, such as selling at a lower price than expected or incurring unexpected expenses.

In this article, based on our experience in supporting the sale of numerous condominiums as INA & Associates, Inc. we will explain in detail everything fromthe flow of selling a condominiumto points to note in a way that is easy for the average consumer to understand.

In order to successfully sell a condominium, it is necessary to comprehensively consider multiple factors, such as understanding market trends, setting an appropriate appraisal price, and selecting a reliable real estate company.

Basic Flow of Condominium Sales

The sale of a condominium progresses in the following eight steps.

Making appropriate decisions at each step will lead to a satisfactory sale result.

Overall picture from preparation for sale to completion of contract

Steps Contents Estimated time period Main points to note
1.Sale consideration and information gathering Investigation of market price, clarification of reasons for sale 1-2 weeks Confirm market price from multiple sources
2. Real estate company selection Assessment request, comparison of brokerage firms 2-3 weeks An appraisal is acquired from at least three or more companies.
Mediation contract conclusion Selection of under-exclusive-contract exclusive duty, full-time duty, and general mediation 1 week Understanding of difference by contract form
4. Sale activity start Advertisement publication, private viewing correspondence 1-6 months Maximize the appeal of the property
Purchase offer and price negotiation Negotiation of terms and conditions, adjustment of contract terms 1-2 weeks Consider compromises in advance
Conclusion of purchase agreement Explanation of important matters, signing of contract 1 week Confirmation of contract details
Settlement and preparation for delivery Mortgage full repayment procedures, move-in preparations 1-2 months Schedule management of various procedures
Completion of settlement and delivery Transfer of ownership, delivery of keys 1 day Advance preparation of necessary documents

Important Preparation at the Stage of Considering Sale

When considering the sale of a condominium, it is important to first clarify the reason for the sale.

The optimal sales strategy will differ depending on the reason for sale, such as relocation, fundraising, and handling inheritance.

It is also necessary to compare the current mortgage balance with the expected sale price to confirm that the property is not in an overdrawn condition.

If the property is overleased, the proceeds from the sale alone will not be sufficient to pay off the mortgage, so it will be necessary to prepare additional funds or consider a voluntary sale.

In researching market prices, we comprehensively analyze past transaction cases within the same condominium, sales prices of similar properties in the neighborhood, and market information on real estate portal sites.

However, since it is difficult to make an accurate assessment based solely on information on the Internet, it is essential to have a detailed assessment by a specialist.

Key Points for Selecting a Real Estate Company

The success of condominium sales depends on the selection of a reliable real estate company.

It is important to evaluate the overall quality of service, rather than making a decision based solely on the low brokerage fee.

How to identify an excellent real estate company

In order to identify a good real estate company, the following factors must be evaluated comprehensively.

Clarity of the basis for assessment is one of the most important criteria.

You should choose a company that can present a logical basis based on market data, not merely a high appraisal value.

The expertise of the sales representative is also an important factor.

Check for legal knowledge, tax knowledge, and understanding of market trends related to the sale of condominiums, and determine if the person in charge is capable of providing accurate advice.

Check the specifics of the sales strategy in detail.

It is desirable for a company to be able to present a concrete sales plan, such as what media to use for advertising, how to set the target group, and how to respond to previews.

Type and feature of mediation contract

Contract type Number of possible contract companies Raines registration duty Report duty to the seller Merit Demerit
Under-exclusive-contract exclusive duty mediation Only one company Within five days More than once a week An active sales work can be expected. It cannot compare with other companies.
Full-time mediation Only one company Within 7 days More than once in two weeks Self-discovery dealings are possible Risk of dependence on selling power
General mediation Multiple companies possible Voluntary Optional Competition effect by multiple companies Possibility that aggressiveness of each company decreases

A under-exclusive-contract exclusive duty mediation contract is a contract form in which sales activities are consigned to one company, and since a sure mediating fee can be obtained for a real estate company, the most active sales activities can be expected.

On the other hand, since it is not possible to compare with other companies, the selection of a real estate company becomes especially important.

Because a general mediation contract can request sale to two or more real estate companies at the same time, it is possible to approach more purchase desire persons.

However, since the aggressiveness of each company tends to decrease, the seller itself needs to be involved in sales activities more actively.

Expenses for the sale of condominiums

In the sale of a condominium, the proceeds from the sale do not remain in hand as it is.

It is important to grasp various expenses in advance and to calculate the amount of proceeds accurately.

Major expenses that arise at the time of sale

Expense item Approximate amount Time of payment Remarks
Brokerage fee Sold price x 3% + 60,000 yen + consumption tax At the time of contract and settlement Paid as contingency fee
Stamp duty At the time of contract At the time of contract Varies depending on the sale price
Mortgage Cancellation Fee 10,000-30,000 yen At the time of settlement Including judicial scrivener's fee
Transfer income tax and inhabitant tax Gain on sale x tax rate At the time of filing tax return for the following year Tax rate varies depending on the period of ownership
Moving expenses 100,000-500,000 yen Before moving Varies depending on distance and amount of belongings
House cleaning 50,000-150,000 yen Before delivery Optional, but has the effect of promoting sale

A mediating fee is the largest expense item, and is calculated as "sales price x 3% + 60,000 yen + consumption tax" when the sales price exceeds 4 million yen.

For example, if a condominium is sold for 30 million yen, the brokerage fee is 1,056,000 yen (including consumption tax).

Transfer income tax is imposed only when a profit is generated from the sale.

If the property is owned for five years or less, the tax rate is approximately 39% as short-term transfer income, and if the property is owned for more than five years, the tax rate is approximately 20% as long-term transfer income.

However, a special deduction of 30 million yen is available for the sale of residential property, which can reduce the tax burden in many cases.

Devices to Reduce Expenses

In order to reduce the cost of sale, several devices are possible.

By acquiring assessments from multiple companies, it is possible to explore the room for negotiation of a brokerage fee.

However, it is important to consider not only the low commission, but also the balance with service quality.

For house cleaning and minor repairs, the implementation of such services is determined by comparing the cost with the effect of improving the sale price.

In general, cleaning of water and replacement of wallpaper are considered to be cost-effective.

Moving costs can also be reduced by adjusting the timing of the move.

Avoiding the busy season (March-April) may significantly reduce moving costs.

Strategies to maximize the sale price

In the sale of condominiums, setting an appropriate price andimproving the attractiveness of the property are keys to a successful sale.

A strategic approach based on market trends is necessary.

How to Set an Appropriate Selling Price

Setting the selling price is the most important factor that determines the success or failure of the condominium sale.

Setting the offer price too high above the market price will prolong the sale period and may ultimately force a sale at a lower price.

On the other hand, setting too low a price below market can result in lost profit.

In order to set an appropriate price, the following factors should be analyzed comprehensively.

Transactions within the same condominium are the most useful indicator.

Detailed analysis of the past year's transaction prices within the same building and the current price trend of properties for sale.

We estimate the appropriate price for your property, taking into account differences in floor number, orientation, exclusive area, renovation history, etc.

Comparison with similar properties in the neighborhood is also an important factor.

We analyze price trends of properties with similar age, structure, location, facility specifications, etc. to objectively evaluate the competitiveness of your property.

Changes in market conditions also have a significant impact on pricing.

Macro factors such as interest rate trends, mortgage policies, tax system reforms, and regional development plans should be considered in their impact on real estate prices.

How to increase the attractiveness of a property

Proper preparation prior to the sale can significantly improve the attractiveness of a property.

Improving first impressions is one of the most effective ways.

Since the impression made during a viewing greatly influences the decision to purchase, it is important to create a bright and clean impression by cleaning, organizing, and improving lighting.

Minor repairs are also effective.

Stains on wallpaper, deterioration of the water system, and malfunctioning fixtures can give a bad impression to prospective buyers.

Minimal repairs that are cost-effective and necessary can improve the selling price.

The use of home staging is also worth considering.

Furniture and accessories can be effectively arranged to maximize the property's appeal.

Especially in the case of vacant rooms, staging the room to resemble a model room can increase a prospective buyer's willingness to purchase.

Key Points for Handling Viewings

Handling viewings is an important element of a successful sale.

Preliminary preparations include cleaning the room, keeping it tidy, adjusting the temperature and humidity appropriately, and ensuring adequate lighting.

On the day of the preview, we will organize detailed information about the property, the surrounding environment, and management conditions in advance so that we can accurately answer questions from prospective buyers.

It is important to avoid excessive sales talk and provide an environment where prospective buyers can tour the property freely.

After-sales follow-up is also important.

If a prospective buyer has additional questions after viewing the property, we will respond promptly and accurately to maintain and improve their willingness to purchase.

Points to keep in mind when selling a condominium

Various risks and pitfalls exist in the sale of condominiums.

Advance knowledge and preparation can minimize these risks.

Contract-Related Precautions

The sales contract is a legally binding and important document.

Detailed confirmation of the terms and conditions of the contract is essential, and the following items in particular should be carefully considered

It is important to understand the exact amount and nature of the deposit.

The deposit is in the nature of a deposit for the contract, and in the event of cancellation of the contract for the buyer's convenience, the deposit is waived; in the event of cancellation of the contract for the seller's convenience, double the amount of the deposit is due.

The time and conditions of delivery must also be agreed upon in detail.

In the case of a change of residence, it is important to coordinate with the purchase schedule of the new residence, and the method of handling the case where the delivery date needs to be postponed should be discussed in advance.

Liability for defects must also be fully understood.

The seller is liable for a certain period of time for defects in the property discovered after the sale.

Known defects should be notified to the buyer in advance and specified in the contract to prevent problems.

Tax-related points to note

The tax treatment associated with the sale of a condominium is complex, and it is important to obtain professional advice.

In calculating transfer income, it is necessary to accurately grasp acquisition costs, transfer expenses, and special deductions.

Acquisition costs include not only the purchase price, but also brokerage fees at the time of purchase, registration fees, and real estate acquisition taxes.

When applying for the special exemption for residential property, it is necessary to confirm whether the residence period, period of ownership, and past application history meet the requirements.

The application of the ¥30 million special exemption, reduced tax rate exemptions, and special provisions for replacement of property may significantly reduce the tax burden.

Preparation for tax return procedures is also required in advance.

Tax returns must be filed by March 15 of the year following the year of sale, and preparation of the necessary documents and tax returns takes time.

Mortgage-related notes

When selling a condominium with an outstanding mortgage, coordination with the financial institution is required.

The mortgage cancellation procedure must be completed at the same time as the mortgage loan is paid off with the sale proceeds.

It is important to confirm in advance the procedure flow on the day of settlement and prepare the necessary documents.

In the case of an overdraft, the mortgage cannot be paid off with the proceeds from the sale alone, so additional funds must be prepared.

If it is difficult to procure additional funds, you will need to consider a voluntary sale.

When considering the use of a resale loan, it is important to coordinate the timing of the sale and purchase.

Since the sale and purchase settlements must take place on the same day, careful schedule management is required.

Conclusion

The sale of a condominium is an important transaction that can be made successful with proper knowledge and preparation.

A multifaceted approach is required, including understanding market trends, selecting a reliable real estate company, setting an appropriate price, improving the attractiveness of the property, and addressing various risks.

Particularly important points are summarized below.

In the sale preparation stage, it is important to solidify the foundation of the sale strategy by clarifying the reason for the sale, researching the market trend, and confirming the mortgage balance.

In selecting a real estate company, we comprehensively evaluate the clarity of the basis for the appraisal, the expertise of the sales staff, and the specificity of the sales strategy, and select the most suitable partner.

In pricing and sales activities, we maximize the sale price by setting an appropriate price based on market data and preparing to maximize the property's appeal.

At the contract and settlement stage, we ensure safe and secure transactions by confirming detailed contract terms, properly implementing tax treatment, and facilitating mortgage-related procedures.

The sale of a condominium is an important transaction that is experienced only a few times in a lifetime.

By proceeding systematically and strategically with a trusted partner with expertise, a satisfactory outcome can be achieved.

INA&Associates K.K. will propose the best sale strategy for each client's situation and support a safe and secure transaction.

If you are considering selling your condominium, please do not hesitate to contact us.

Frequently Asked Questions

Q1. How long does it take to sell a condominium?

The time frame for selling a condominium varies greatly depending on the market environment, the condition of the property, pricing, and other factors.

In general, it takes 3-6 months from the start of sales activities to the conclusion of a contract, and 1-2 months from the conclusion of a contract to the delivery of the property.

It is possible to sell a property within one month if it is in a popular area with favorable conditions, but it may take more than one year for a property with difficult conditions.

With appropriate pricing and an effective sales strategy, the time required to sell can be shortened.

Q2. Can I sell my condominium even if I still have a mortgage?

Even if there is a mortgage remaining, if the loan can be paid off with the proceeds from the sale, it can be sold without any problem.

In the case of an "overdraft" where the proceeds from the sale are less than the remaining loan balance, you will need to make up the shortfall with your own funds or consider a voluntary sale.

Preliminary consultation with financial institutions will help you find the best solution.

Q3. How much tax will be charged on the sale of a condominium?

Taxes on the sale of condominiums are only levied when a gain on sale (transfer income) is generated.

A special deduction of ¥30 million is applicable to the sale of residential property, which reduces the tax burden in many cases.

If the property has been owned for less than 5 years, the tax rate is approximately 39%, and if the property has been owned for more than 5 years, the tax rate is approximately 20%. However, the actual tax burden may be significantly reduced by applying various special provisions.

Q4. What are the costs other than the brokerage fee?

Other than the brokerage fee, major expenses include stamp tax, mortgage cancellation costs, transfer income tax and inhabitant tax, and moving expenses.

In addition, house cleaning and minor repair expenses may also be incurred.

It is common to expect 5-10% of the sale price in total.

Q5. Do I need to remodel before selling?

Large-scale remodeling is generally not recommended.

This is because in many cases, the effect of price improvement cannot be expected to be commensurate with the cost.

However, cleaning of the plumbing, re-covering of wallpaper, and minor repairs are cost-effective and effective in promoting sales.

It is important to make the minimum necessary improvements, taking into account the condition of the property and the market environment.