When selling a condominium, there are two main options: a direct purchase and brokerage. Because these methods differ significantly in price, speed, and fees, choosing the right one for your situation is important. In this article, we explain the differences between direct purchase and brokerage, as well as the characteristics of condominiums that are well suited to direct purchase.
What is the difference between condominium purchase and brokerage?
Before choosing a selling method, it is important to understand how each option works.
What is direct purchase?
It is a method in which a real estate company buys the property directly. Because the business model is based on reselling after renovation, the sale price is lower than with brokerage. However, cash conversion is faster and no brokerage fee is required.
What is brokerage?
It is a method in which a real estate company finds a buyer for you. You may be able to sell at a price close to market value, but the sale takes longer and brokerage fees will also apply.
| Comparison Item | Direct Purchase | Brokerage |
|---|---|---|
| Sale Price | 60% to 80% of market value | Close to market value |
| Time to Sell | 1 to 2 weeks | 3 to 6 months |
| Brokerage Fee | None | 3% of the sale price + 60,000 yen |
| Property Viewings | Not required | Required |
These condominiums are well suited to direct purchase
Let’s look at specific situations where choosing direct purchase makes sense.
Properties that require renovation
Properties with poor interior condition can create a negative impression in brokerage sales, but with direct purchase, poor condition is not a problem because the property will be resold after renovation. In some cases, you may retain more money through direct purchase than by renovating the property yourself and selling it through brokerage.
When you want to sell in a short period
If you want to complete the sale within one to two months due to a sudden job transfer or similar circumstances, direct purchase is the best option. If you have a clear deadline, a sale with a purchase guarantee is also an option.
Frequently Asked Questions (FAQ)
Q. Which leaves more money in hand, direct purchase or brokerage?
In general, brokerage can achieve a higher sale price, but after subtracting renovation costs and brokerage fees, there are cases where direct purchase is more advantageous.
Q. How is the appraisal amount determined in a direct purchase?
It is calculated backward from the expected profit after resale. It is important to request appraisals from multiple direct buyers and compare them.
Q. What is a purchase guarantee?
It is a system in which the property is first listed through brokerage for a certain period, and if it does not sell, the transaction switches to direct purchase. It is a method that balances price and speed.
