Two Ways to Sell a Home: “Brokerage” and “Direct Purchase”

There are two main methods for selling real estate are brokerage, where a real estate company helps find a buyer on the open market, and direct purchase, where the real estate company buys the property directly. Below are the key characteristics of each.

Characteristics of Selling Through Brokerage

When selling through brokerage, a real estate company looks for buyers on your behalf. One major advantage is that the property is more likely to sell at an appropriate market-based price. Buyers typically research competing properties thoroughly, so if the asking price is far above market value, it will be difficult to find a buyer.
 

If a property is initially listed at too high a price, it may fail to attract buyers and eventually require a price reduction. Once the price is lowered, buyers may think “the price might drop further,” which can lead to a longer selling period or even a final sale below market value.
 

By working with a real estate company that understands local market prices and future prospects such as nearby redevelopment, you can list the property at a reasonable price and increase the chances of closing the deal without unnecessary price reductions.
 

On the downside, because you need to find a general buyer, the selling period tends to be longer. On average, it takes about three months from listing to closing. Including the time spent selecting a real estate company, the entire process can take around six months. You may also need to handle property viewings and price negotiations, which can require considerable time and effort.

Characteristics of Selling Through Direct Purchase

The biggest advantage of direct purchase is the short time required to convert the property into cash. Since there is no need to search for a buyer, the sale can be completed in as little as a few weeks. The price assessed by the real estate company becomes the sale price.
 

Another benefit is that properties are purchased in their current condition. Even older properties that may be difficult to sell on the open market can often be sold without the need for renovations.
 

However, one important point to note is the sale price. Real estate companies that offer direct purchase typically renovate the property and resell it. Because of this process, the purchase price is usually about 20–30% lower than the market price that could be achieved through brokerage.
 

Direct purchase is attractive for those who need to sell quickly, but if you have time and want to sell at a market-based price, especially if the property is well located or relatively new, selling through brokerage is generally more suitable.

Whether you choose brokerage or direct purchase, finding a trustworthy real estate company is crucial. Compatibility with the person in charge also matters. A large company does not always guarantee peace of mind, so it is advisable to consult multiple companies, including locally based real estate firms, before making a decision.