When purchasing a property in Japan, various additional costs arise beyond the purchase price. What is Agency Fee?
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What’s Agency Fee?（仲介手数料）
In property transactions, a real estate company acts as an intermediary between the seller and buyer, handling various administrative procedures.
The compensation paid for this service is called an agency fee.
This fee is incurred only once when the contract is finalized.
According to the Real Estate Brokerage Act, the maximum amount of the agency fee is determined based on the property’s price as follows.
| The property over ¥4,000,000(excluding tax) | Transaction amount × 3% + ¥60,000 + consumption tax |
| The property over ¥2,000,000 up to ¥4,000,000(excluding tax) | Transaction amount × 4% + ¥20,000 + consumption tax |
| The property of ¥2,000,000 or less(excluding tax) | Transaction amount × 5% + consumption tax |
Why is the Agency Fee Important?
Understanding the agency fee is essential for budgeting your home purchase. It’s not just about the price of the property; additional costs can significantly impact your overall financial plan. Knowing these fees in advance allows you to make informed decisions and avoid surprises during the buying process.
Common Misconceptions About Agency Fees in Japan
When buying a house in Japan, many buyers hold misconceptions about agency fees. Clarifying these can help you navigate the process more effectively:
- Fees Are Always Fixed: Some buyers think agency fees are non-negotiable. While there are maximum limits set by law, agencies may offer competitive rates or be open to negotiation based on the property value.
- All Agencies Charge the Same Amount: Not every real estate agency has the same fee structure. It’s beneficial to compare different agencies, as some may provide lower fees or additional services that enhance value.
- Agency Fees Are the Only Extra Costs: Many assume that the agency fee is the sole additional expense. In reality, buyers should also consider registration fees, taxes, and inspection costs when budgeting.
- You Only Pay the Fee Once: While the agency fee is typically a one-time charge, remember that if you sell the property later, you may incur similar fees when working with an agent for the sale.
- The Fee Covers All Services: Buyers often believe that the agency fee includes every service related to the purchase. It’s important to clarify what is covered and whether there are extra charges for specific tasks, like legal advice or translation.
Do you have any questions or concerns about buying a house in Japan? Feel free to contact us!
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