How to Choose a Reliable Real Estate Agent in Japan as a Foreigner
When buying a house or an investment property in Japan, the real estate agent you choose will heavily influence your overall success.
For foreign buyers, language differences, mortgage screening, contract interpretation, and unfamiliar legal systems often create additional challenges.
Below is a practical Q&A guide explaining what you should check before choosing a real estate agent in Japan.
Q&A: Key Points When Choosing a Real Estate Agent in Japan
Q1. Should I check the agent’s real estate license number? (Most important)
A. Yes. The license number shows the company’s history and reliability.
In Japan, every licensed real estate company must display its official license number.
Examples:
• “Tokyo Governor (1) No. 12345” = newly established company
• “Tokyo Governor (5) No. 12345” = 20+ years in business
If the license number is missing from their website or business card, avoid them.
Q2. Should I be cautious of agents who only want to do “dual agency”?
A. Yes. “Dual agency” means the agent represents both the seller and the buyer and receives commission from both sides.
Agents who insist on dual agency may:
• Hide property information
• Block other agents from showing the property
• Prioritize their profit over your interests
Choose an agent who is willing to work as a buyer’s agent (single agency).
Q3. Does the agent need to understand the mortgage process for foreigners?
A. Absolutely. Mortgage underwriting for foreigners is more complex than for Japanese buyers.
Banks will look at:
• Visa type and remaining term
• Employer and employment stability
• Annual income and years of employment
• Whether you have Permanent Residency (PR)
A good agent will guide you to realistic banks and help with pre-screening before showing properties.
Q4. The agent keeps sending me many properties without asking my needs. Is this normal?
A. No. Reliable agents always begin with a proper needs assessment.
They should ask about:
• Purpose (residence or investment)
• Budget and preferred area
• Mortgage eligibility
• Long-term lifestyle or investment goals
If they send random listings without understanding your situation, they are not trustworthy.
Q5. Do I need a home inspection (building condition survey)?
A. Strongly recommended, especially for second-hand properties.
Inspections can reveal issues such as:
• Leaks or water damage
• Termite activity
• Drainage and plumbing problems
• Structural deterioration
Agents who proactively suggest a professional inspection generally provide more transparent service.
Q6. Is it important for the agent to have experience working with foreign clients?
A. Yes. Buying property as a foreigner involves additional steps such as:
• Understanding contract terms
• Arranging translation if needed
• Understanding visa and mortgage relationships
• Tax rules and ownership regulations
Choose an agent with proven experience assisting foreign buyers.
Q7. Should commission fees and other costs be clearly explained?
A. Yes. Fee transparency is essential.
In Japan, the legal maximum buyer’s agent fee is:
3% of the purchase price + 60,000 yen + tax
Your agent should explain:
• Total commission amount
• When payment is due
• Whether it’s dual agency or single agency
• Any additional fees (documentation, administrative fees, etc.)
If they cannot explain the cost structure clearly, avoid them.
Q8. The agent pressures me with “You must decide today.” Should I be concerned?
A. Yes. Excessive pressure is a red flag.
A good agent will explain the market situation and risks, then let you make the decision at your own pace—without forcing you into a contract.
Summary: Choose an Agent with Transparency, Professional Knowledge, and Buyer-Focused Service
For foreigners purchasing property in Japan, the biggest risk is not the house itself but choosing the wrong agent.
Reliable agents share three characteristics:
• They provide transparent information (license number, fees, risks)
• They understand how mortgages work for foreigners
• They prioritize the buyer’s interests over dual-agency profit
When buying property in Japan, “who you work with” is just as important as “what you buy.”
If you are considering buying a home or investment property in Japan and need guidance on choosing an agent, mortgages, or the process, feel free to consult a qualified professional to ensure a safe and smooth transaction.
