There are two ways to sell a condo: a "brokered sale" (chūkai), where a real estate company finds you a buyer, and a "direct purchase" (kaitori), where the real estate company buys the property itself. A brokered sale can be expected to bring a price close to market value, while a direct purchase trades a lower price for a fast, certain sale.
- There are two ways to sell a condo — a brokered sale (chūkai), which finds you a buyer, and a direct purchase (kaitori), where the real estate company buys directly.
- A brokered sale can be expected to bring a price close to market value, but the timeline until a buyer is found isn't fixed.
- A direct purchase converts to cash quickly (often within a few weeks), since the real estate company buys the property itself.
- The price for a direct purchase is generally lower than the expected price under a brokered sale (a guideline of roughly 70–80%).
- Another difference is that a direct purchase contract commonly exempts the seller from liability for non-conformity.
What Is a Brokered Sale?
A brokered sale is where a real estate company acts as the seller's agent — running advertising and handling viewings — to find a buyer on the open market. Because the listing reaches many prospective buyers through real estate listing sites and REINS registration, it can be expected to bring a price close to market value. On the other hand, the time it takes to find a buyer varies with market conditions and the property's specifics, and isn't fixed in advance.
What Is a Direct Purchase (Kaitori)?
A direct purchase is where a real estate company buys the property itself, without going through a broker. Since there's no need to market the property widely, you can convert to cash within a few weeks once terms are agreed — that's the key feature. It's sometimes chosen for a sudden move, to avoid the burden of hosting viewings, or to keep the sale private from the surrounding area. Some companies also offer a "purchase guarantee" service: they run a brokered sale for a set period, and if it doesn't sell within that window, they buy it at a price agreed on in advance.
Differences in Price
A direct purchase price tends to be lower than the expected price under a brokered sale, since the real estate company sets it on the assumption that it will resell the property. As a guideline, it's often said to be around 70–80% of the brokered-sale expected price, though this varies by company and property. Which one you choose depends on whether you prioritize price or speed.
Differences in Timeline
With a brokered sale, the time from listing to a signed sale can range from a few weeks to several months or more, depending on the property, pricing, and market conditions. With a direct purchase, the process from appraisal through contract and settlement can often be completed in a short period — sometimes within a few weeks — making it easier to plan around a firm timeline.
Differences in Liability for Non-Conformity
In a brokered sale between individuals, the seller may bear liability for non-conformity (responsibility for defects discovered after handover). With a direct purchase, since the buyer is the real estate company (a licensed real estate broker), it's common for the contract to exempt the seller from this liability — one reason it's chosen by sellers who want to limit the risk of post-handover disputes.
How to Decide Which One to Choose
If you want to sell for as much as possible and have time to spare, a brokered sale suits you; if you want to convert to cash quickly, want to avoid the burden of viewings, or want to limit the risk of liability for non-conformity, a direct purchase is worth considering. The two aren't mutually exclusive — one common approach is to run a brokered sale first, while keeping a direct purchase in reserve as an option if the property hasn't sold within a certain period. It's best to check both the expected brokered-sale price and the direct-purchase price, then choose based on what matters most to you.
Frequently Asked Questions
How much lower is a direct purchase price compared to a brokered sale?
As a guideline, it's often said to be around 70–80% of the expected price under a brokered sale, but this varies by property and company, so it's worth comparing actual quotes.
Are there benefits to a direct purchase besides speed?
Yes — beyond a lower price, benefits include fast cash conversion, less burden from hosting viewings, and exemption from liability for non-conformity.
Can I get quotes for both a brokered sale and a direct purchase?
Many real estate companies can provide appraisal figures for both a brokered sale and a direct purchase. It's worth comparing both before deciding.
Summary
Selling a condo can go through a brokered sale or a direct purchase (kaitori), and the two differ in price, timeline, and how liability for non-conformity is handled. Once you understand the features of each, it's worth choosing based on your situation — whether price or speed and convenience matters more to you.