Costs of selling property
Brokerage, mortgage release, legal costs, repairs, tax, and net proceeds.
Selling reduces your net proceeds through brokerage commission, mortgage release and registration, legal costs, any repairs, and capital-gains tax — so calculate net proceeds after all of these, not the headline sale price.
Key points
- Brokerage commission on the sale reduces proceeds.
- Releasing the mortgage and registration has costs.
- Repairs, legal costs, and capital-gains tax further reduce net proceeds.
- Calculate net proceeds, not the headline sale price.
What reduces your proceeds
Selling is not free. Brokerage commission on the sale (subject to the statutory maximum), the cost of releasing the existing mortgage and the associated registration, legal and judicial-scrivener costs, any repairs needed to sell, and capital-gains tax all reduce your net proceeds. A sale that looks profitable on the headline price can be much thinner once these are counted, and if you still owe more than the net proceeds, you must cover the shortfall to clear the mortgage.
Calculate net proceeds
Work out net proceeds — the sale price minus all selling costs, the outstanding mortgage, and the capital-gains tax on any taxable gain — before you decide to sell or set an asking price. A qualifying principal-residence sale may access a capital-gains deduction of up to ¥30 million subject to conditions, which can materially change the tax, so factor that in. The number that matters for your decision is what actually lands in your account, not the price on the listing.
Key points to carry away: Brokerage commission on the sale reduces proceeds; Releasing the mortgage and registration has costs; Repairs, legal costs, and capital-gains tax further reduce net proceeds; Calculate net proceeds, not the headline sale price. Use the linked guides and calculators for the full decision, and confirm anything material with the lender, a licensed broker, a judicial scrivener, or a tax accountant before you act.
Who this is for
- Owners considering a sale
- Anyone estimating net proceeds
What this is not
- A tax computation
- If you owe more than the net proceeds, you must cover the shortfall to clear the mortgage.
Frequently asked questions
What tax applies when I sell property?
Capital-gains tax on the taxable gain after basis, allowable costs, and relief — not the gross price.
What is the ¥30 million home-sale deduction?
A possible deduction of up to ¥30 million from qualifying principal-residence capital gain, subject to conditions.