Working in the real estate industry, I sometimes receive questions from clients like: "Overseas real estate agents seem to work freely like freelancers — why do they belong to specific companies?"
Also, the way they are portrayed in movies and dramas shows them as high-income professionals with high social status, trusted by clients like "teachers." Meanwhile, unfortunately, the image of Japanese real estate salespeople still carries strong connotations of "strict quotas" and "pushy sales tactics."
What is the difference between these two? Behind it lies a decisive difference in legal frameworks, licensing systems, and compensation structures.
The Fundamental Difference: Agent System vs. Employee System
Overseas realtors — especially in the United States and other countries that have adopted the Multiple Listing Service (MLS) system — operate primarily as independent contractors or agents under brokerage firms. They are not "employees" of a real estate company but rather work under a business relationship.
This means their compensation is almost entirely commission-based, with no fixed salary. While this creates income instability, it also means income is directly proportional to effort and skill. Naturally, this structure makes self-improvement and professional development a matter of personal investment.
In contrast, in Japan, most real estate salespeople are employed as company employees. They receive a fixed base salary, which provides stability. However, it also means the individual's sales performance is less directly linked to compensation, which can reduce motivation for self-investment.
The Licensing System: A Major Determinant of Social Status
The US Realtor System
In the United States, to become a real estate agent, you must pass a state-level exam and obtain a license. On top of that, "Realtors" — members of the National Association of Realtors (NAR) — are bound by a strict code of ethics. This code places the client's interests first, obligating agents to fiduciary duty.
This means that American realtors are legally and ethically required to "work for the client's benefit." This duty is one of the biggest factors behind the high social trust and status of overseas realtors.
Japan's Real Estate Agent System
In Japan, the real estate transaction specialist (宅建士) qualification is required for real estate transactions. However, the level of fiduciary duty is different from the US system. In Japan, brokers in a dual agency relationship are not necessarily required to prioritize the buyer's interests over the seller's.
This structural difference has a major impact on the trust relationship between clients and sales representatives.
MLS vs. REINS: Information Transparency
Another major factor is information transparency. In the US, the MLS (Multiple Listing Service) system allows buyers to access property information directly through portal sites. Buyers can see what properties are on the market without going through an agent first.
Japan's equivalent, REINS (Real Estate Information Network System), is only accessible to licensed real estate businesses. Consumers cannot directly access it. This information asymmetry — where agents hold information that consumers cannot easily access — is one reason why the image of "pushy sales" developed.
Compensation Structure and Professional Consciousness
Because overseas realtors are commission-only, their income directly reflects their professional skill and client satisfaction. This creates strong incentive for professional development, specialization, and building a personal brand.
Many top US realtors invest heavily in marketing, professional development, and technology to build their personal brand and client base. This professional consciousness is what creates the high-status image seen in media.
What Japanese Real Estate Can Learn
At INA&Associates, we are working to change the image of real estate sales in Japan. We believe that real estate professionals should be trusted advisors — like doctors or lawyers — who place the client's interests first.
We invest heavily in our talent, not just in technical training but in developing the professional consciousness, ethical standards, and client-first mindset that creates the trusted advisor relationship. We believe that when Japanese real estate professionals are held to the same standards of fiduciary duty and professional excellence as overseas realtors, the industry's social status will naturally improve.
Frequently Asked Questions
Q1: Can overseas real estate systems be directly applied in Japan?
Direct application is difficult because the legal framework, licensing system, and market structure are different. However, the spirit — placing client interests first and professional excellence — can and should be adopted.
Q2: Are there Japanese real estate professionals who are as trusted as overseas realtors?
Yes, absolutely. There are many excellent professionals in Japan. The challenge is creating a system and culture where this excellence is the norm, not the exception.
Q3: What is the biggest difference in compensation?
The biggest structural difference is commission-only vs. salary-based. US realtors are typically paid only when a transaction closes, directly linking income to performance. Japanese salespeople typically receive base salary plus performance-based bonuses.
Q4: What is the biggest difference between MLS and REINS?
The biggest difference is the scope of information disclosure. MLS information is broadly available to general consumers through portal sites, while REINS is a closed system that only licensed real estate businesses can access. This information asymmetry greatly affects the relationship between customers and sales representatives.
