Many people considering selling a condominium have the same question: "How does the process actually work?" In this article, we explain the four steps of selling a condominium in detail, along with the key points to watch at each stage and practical points for a successful sale.
What Is the Condominium Selling Process? Explained in 4 Steps
Selling a condominium generally consists of four main steps. Understanding each step and preparing in advance is the key to a smooth sale.
Step 1: Request an appraisal from a real estate company
An appraisal means having the expected sale price of the condominium estimated. After reviewing the appraised value, you decide whether to proceed with the sale. In recent years, services that let you request appraisals from multiple companies at once have become common, making them useful for understanding the market.
Step 2: Sign a brokerage agreement
A brokerage agreement is a contract that formally asks a real estate company to handle the sale of the condominium (intermediation). There are three types.
- General brokerage agreement: You can work with multiple companies. Competition increases, but there is no obligation to register with REINS
- Exclusive brokerage agreement: You work with only one company. There is an obligation to receive an activity report once every two weeks
- Privileged and exclusive brokerage agreement: Only one company may handle the sale, and even self-found buyers are not allowed. There is a reporting obligation once a week
pocket listing problem can also be prevented by checking the REINS registration status regularly.
Step 3: Sales activities
Sales activities are led by the real estate company's sales representative. The main tasks include online advertising, flyer distribution, showing the property, and price negotiations. The seller's main role is only to coordinate showing schedules and clean the home. That is why choosing a sales representative you can trust is the single most important point for a successful sale.
Step 4: From application to handover
Once you and the buyer agree on the sale price and other terms, the buyer submits an application, and the sales contract is usually signed within about one week. After that, settlement and handover are completed within one to two months. Preparation of the necessary documents and schedule coordination are basically supported by the sales representative.
Practical points for successfully selling a condominium
- Request appraisals from multiple companies: It is difficult to understand the market with only one appraisal. Request appraisals from at least three companies
- Understand the types of brokerage agreements and choose accordingly: Select the contract type that fits your situation
- Evaluate the quality of the sales representative: Check the specific sales plan, past performance, and responsiveness
- Set the listing price carefully: If it is set too high compared with the market, closing the deal will take longer. Use the appraisal as a reference and set a realistic price
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Frequently Asked Questions (FAQ)
Q. How long does it take to sell a condominium?
From appraisal to handover, it typically takes about three to six months on average. This can vary significantly depending on market conditions, location, and pricing.
Q. Which type of brokerage agreement is the most advantageous?
In general, an exclusive brokerage agreement is considered the most balanced option. Sales representatives are often more proactive under this arrangement, and there is also a reporting obligation every two weeks.
Q. Can I use the appraised value as the listing price as is?
The appraised value is only a guideline. Compare appraisals from multiple companies and decide on the actual listing price based on the market.
Q. What costs are involved when selling?
The main costs are the brokerage fee (3% of the sale price + 60,000 yen + consumption tax), stamp tax, registration costs (if there is an outstanding loan balance), and capital gains tax.
Q. Can I sell a condominium that still has a mortgage balance?
Yes, as long as the mortgage can be fully repaid with the sale price. If the sale price is lower than the remaining loan balance, a special procedure called a "voluntary sale" becomes necessary.
