Category: Brokerage Fee

10/12/2024

What’s 60,000 yen on the real estate commission fee?

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When purchasing real estate in Japan, the brokerage fee is often expressed as "3% + 60,000 yen." The 60,000 yen represents a fixed fee charged by the brokerage firm.

The calculation of real estate brokerage fees is based on the transaction price as follows:

For properties priced at 2 million yen or less: The fee is 5% of the transaction price.
For properties priced between 2 million yen and 4 million yen: 5% for the portion up to 2 million yen, and 4% for the portion exceeding 2 million yen.
For properties priced over 4 million yen: 3% for the portion exceeding 4 million yen, plus an additional 60,000 yen.

In other words, when the property price exceeds 4 million yen, the brokerage fee is calculated as 3% of the transaction price plus an additional 60,000 yen.

If the property price is 40 million yen, the brokerage fee can be calculated as follows:
Brokerage fee = 3% of the price + 60,000 yen (excluding tax)
In this case, since the price is 40 million yen:

Calculate 3% of 40 million yen:
40,000,000yen×0.03=1,200,000yen
Then, add 60,000 yen:
1,200,000yen+60,000yen=1,260,000yen

So, the brokerage fee excluding tax would be 1,260,000 yen.
To include consumption tax, you would calculate the tax on 1,260,000 yen. For example, if the consumption tax is 10%:
1,260,000yen×0.10=126,000yen Thus, the total brokerage fee including tax would be 1,386,000 yen.

As of July 1, 2024, the method for calculating real estate brokerage fees in Japan has changed. Under the new rules, if the property price is 8 million yen or less, the maximum brokerage fee is capped at 330,000 yen (including tax). This revision was introduced to stimulate transactions involving lower-priced properties, including vacant homes.

If you want to search for real estate for sale in Kyoto, please visit this site: https://realestate-kyoto.com/.

8/2/2020

What is a Agency Fee?

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Cost required when buying and selling real estate- Agency fee

If you trade real estate through a real estate agent, you must pay the prescribed brokerage fee (intermediary fee) to the real estate agent. The maximum amount of brokerage fees is set by the Ministry of Land, Infrastructure and Transport Notification.
When requesting a real estate agent to sell or purchase real estate, we conclude an intermediary contract with the real estate agent. The intermediary contract defines the period and conditions of the request, the amount of intermediary fee, etc. Brokerage fees are often paid half the amount when a sales contract is concluded and half the amount when the balance is paid.

Real estate brokerage fee rate

Trading Amount *¹	Rate (%)	Quick Procedure
2 million yen or less	5.5	5.5%
Over 2 million yen and under 4 million yen	4.4	4.4% + 22,000 yen
Over 4 million yen	3.3	3.3% + 66,000 yen

*¹ Amount not including consumption tax

<Calculation example>
Brokerage fee when condominium sale is completed for 30 million yen

(1) Principle calculation method *When calculating the brokerage fee, use a separate calculation.
2 million yen x 5.5% = 110,000 yen ････a
(4 million yen to 2 million yen) x 4.4% = 88,000 yen ････b
(30 million yen-4 million yen) x 3.3% = 858,000 yen...c
Total a+b+c = 1,056,000 yen

② Quick calculation method
30 million yen x 3.3% + 66,000 yen = 1,056,000 yen
Therefore, the maximum amount of brokerage fee (including consumption tax, etc.) will be 1056,000 yen when a real estate agent requests brokerage and the sale is completed for 30 million yen.

If you have any questions, please feel free to contact us.

What’s 60,000 yen on the real estate commission fee?

What is a Agency Fee?

Cost required when buying and selling real estate- Agency fee

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