When selling a used condominium, the first thing you may be concerned about is "Where should I start?" The process of selling is to receive an appraisal, determine the price, conclude a brokerage contract, carry out sales activities, conclude a sales contract, settle and hand over the property, and proceed to final tax returns if necessary.
However, just knowing the flow is not enough. If you make a mistake in understanding the appraised price, choosing a brokerage contract, preparing for viewings, giving notice before signing a contract, checking the remaining balance of the mortgage, and checking special tax provisions, the sales price and remaining balance will be affected.
In this article, we will organize the sale of a used condominium in six steps and explain the points that sellers should check at each stage.
Step 1: Decide the purpose of sale and deadline
Before requesting an appraisal, first clarify the purpose and deadline of the sale. This is because priorities change depending on the reason, such as inheritance, relocation, relocation, asset consolidation, exit from investment property, etc.
| Reasons for selling | Things to prioritize | Points to note |
|---|---|---|
| Relocation | Adjustment of sale and purchase timing | Temporary housing, double mortgage payment |
| Inheritance | Agreement of co-owners, tax deadline | Division of inheritance, acquisition cost information |
| Transfer | Early sale | Don't lower the price too much |
| Investment property | Yield/sale while renting | Lease contract and income and expenditure information |
| Asset management | Maximize remaining balance | Taxes, brokerage fees, and outstanding debt |
It is natural to want to sell as high as possible, but if the deadline is short, the pricing strategy will change. If you decide on a period for challenging high prices and then create a rule for reviewing prices after that, you will be less likely to waver in your decisions during sales.
Step 2: Request an appraisal and confirm the basis of the price
For sales appraisals, we ask multiple real estate companies to compare not only the price but also the basis. A company that offers a high appraisal price does not necessarily mean that it will sell at a high price.
The following documents should be viewed during the assessment:
| Items to check | Reasons to watch |
|---|---|
| Examples of contracts in the same condominium | Easiest to compare |
| Case studies of similar condominiums in the surrounding area | Understand market prices |
| Current competition for sale | View competitive environment for sale |
| Correcting the number of floors, direction, view, and area | Seeing the strengths and weaknesses of individual housing units |
| Management fees/repair reserve fund | Affects buyer's monthly burden |
| Repair history/management status | Impact on long-term value |
The appraised price is not a price that guarantees a sale. We will make adjustments based on the sales price, response status, number of viewings, and application price.
Step 3: Choose a brokerage contract
A brokerage contract is a contract that requests a real estate company to carry out sales activities. There are three types: general intermediary, dedicated intermediary, and exclusive exclusive intermediary.
| Type | Request from multiple companies | Self-discovery transaction | Rains registration | Business report |
|---|---|---|---|---|
| General mediation | Possible | Possible | Arbitrary | Possible to ask |
| Dedicated intermediary | Only one company | Possible | Within 7 days from the day after the contract (excluding holidays) | At least once every two weeks |
| Exclusive exclusive intermediary | Only one company | Not possible | Within 5 days from the day after the contract (excluding holidays) | At least once a week |
East Japan Rains explains that exclusive brokers and exclusive brokers are required to register Rains, issue a registration certificate, and report on their business. If you choose to leave the matter to one company, be sure to check that company's sales capabilities, report content, and attitude to prevent lock-in.
While general intermediation can be outsourced to multiple companies, the responsibilities of each company tend to be dispersed. General agents may be suitable for popular areas or rare housing units, but if you want to centrally manage your sales strategy, a full-time agent may be suitable.
Step 4: Conduct sales activities and previews
Sales activities include posting on the portal site, introducing to existing customers, flyers, registering for Rains, and providing previews. The biggest help a seller can give is to create a good impression at the time of viewing.
Please check the following points before viewing.
- Reduce the amount of luggage in the room and make the floor space appear larger
- Focus on cleaning the water area, entrance, and balcony
- Open the curtains and turn on the lights
- Prepare repair history, equipment manuals, and management regulations
- Organize management fees, repair reserve funds, and parking space availability
- Check notices such as pets, smoking, water leaks, noise, etc.
If there is little response, review the price, photos, description, sales company's movements, and competing properties. Before lowering the price alone, it is important to check whether the published photos or appealing points are weak.
Step 5: Sign the sales contract
When we receive a purchase offer, we will adjust the price, delivery date, deposit, treatment of equipment, liability for non-compliance with the contract, mortgage loan special provisions, etc. Once the conditions are agreed, we will conclude a sales contract.
What sellers should pay attention to before signing a contract are notices and documents. It is necessary to properly communicate matters that will affect the buyer's decision, such as rain leaks, water leaks, equipment failures, troubles with neighbors, large-scale repairs determined by the management association, and lump-sum payments.
| Documents to check before signing a contract | Purpose |
|---|---|
| Registration identification information or title certificate | Necessary for ownership transfer |
| Property tax payment notice | Necessary for calculating liquidation amount |
| Management terms and usage rules | Necessary for buyer explanation |
| General meeting minutes/long-term repair plan | Confirmation of management status |
| Proof of mortgage balance | Preparation for mortgage cancellation |
| Equipment list/property status report | Arrangement of notification/delivery conditions |
Step 6: Make payment, delivery, and tax return
On the settlement date, we will receive the remaining amount from the buyer, repay any remaining mortgage loans, cancel the mortgage, and proceed with the registration of ownership transfer. The transaction is completed by handing over the keys, management regulations, equipment manual, and remote controls.
After the sale, you will need to file a tax return if you receive any capital gains. If you sell your home, the National Tax Agency has announced a special provision that allows you to deduct up to 30 million yen from capital gains, regardless of the length of the ownership period, if you meet certain requirements.
However, there are requirements for special cases. Individual confirmation is required, such as whether the house is currently occupied, the house has been occupied for a certain period of time, and the sale is not to special parties such as parents and children or husband and wife. Please check with your tax accountant or tax office, as this may be related to home loan deductions and replacement special provisions.
Points where selling is likely to fail
Common mistakes when selling used condominiums are not due to the process itself, but due to errors in judgment at each stage.
| Failure | Reasons why it happens | How to prevent it |
|---|---|---|
| No response due to too high sales price | Not looking at the basis of the appraised value | Comparing the competition and successful cases |
| Leaving too much up to the real estate company | Not checking the report contents | Regularly checking the number of responses, number of viewings, and improvement plans |
| Poor preparation for showings | Difficulty selling while living | Thorough cleaning, organization, and lighting |
| Failure to notify | Downplaying defects | Carefully preparing property condition report |
| Postpone taxes | See only the sale price | Create a simulation of remaining balance |
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- Appropriate home price determined by AI real estate appraisal | Thorough explanation of selling timing and tips for selling at a high price
- Don't lose money when selling real estate! How to spot the position talk of intermediaries and the trap of two-handed intermediaries
Frequently asked questions
Q. How long does it take to sell a used condominium?
Generally, it takes about 3 to 6 months from appraisal to handover. However, this will vary depending on price, area, age of building, competition, and deadline to sell.
Q. How many companies should I request for an appraisal?
We recommend comparing at least 2-3 companies. Look not just at the price, but at the rationale, sales strategy, and explanation ability of the person in charge.
Q. Can I sell it even if I still have a mortgage?
If you can pay off the loan with the sale proceeds or your own funds and cancel the mortgage, you can sell the property. If the remaining debt exceeds the sale price, it is necessary to consult your financial institution in advance.
Q. Will I have to pay tax if I make a profit on the sale?
If you receive capital gains, they will be subject to tax, but you may be able to take advantage of special provisions such as the 30 million yen special deduction for your own home. Check the requirements and required documents.
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