How the commission for agents (realtors) work in Japan ?
The system is very different from that of USA.
In the US, sellers pay the commission to the sellers agents (listing agents) and buyers don’t pay the commission.
(Later, sellers agents split the commission with buyers agents)
In Japan, a buyer pays the 3% commission to buyers agent and a seller pays the same 3% to sellers agent (listing agent)
3% is the statutory rate and not negotiable (it is but I don’t negotiate).
Japan has been infamous for the problem of “dual agency”.
“Dual agency” is a situation in which the same agent represents both buyer and seller.
In this case, the agent would receive the entire commission (6% in Japan)
Sounds reasonable ? It is not. Why ?
‘Dual agency” always institutes a huge problem due to the conflict of the interest.
Please see the details in my video.
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Real estate investing consultant and author.
Founder of Yamamoto Property Advisory in Tokyo.
International property Investment consultant and licensed
real estate broker (Japan).
He serves the foreign companies and individuals to buy and sell
the real estates in Japan as well as own homes.
He holds a Bachelor’s degree in Economics from
Osaka Prefecture University in Japan
and an MBA from Bond University in Australia
Toshihiko’s book, “The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage and Sell Real Estate in Japan”is now out on Amazon, iBooks (iTunes, Apple) and Google Play.
About the book