How to Make an Offer on a Property in Japan

Making an offer on a property in Japan is a distinct process compared to most Western countries. The Japanese real estate market has its own customs, forms, and etiquette — and for foreign buyers, understanding how the offer process works is critical to securing the property you want without costly mistakes. This guide walks you through every stage, from submitting your initial letter of intent to signing the purchase agreement and handing over your deposit.

For a broader overview of the buying journey, see our Step-by-Step Home Buying Process in Japan for Foreigners guide.

Understanding the Japanese Offer Process

Unlike some markets where verbal offers are common, the Japanese real estate process is largely paper-driven and formal. Before you can submit any offer, you need to be working with a licensed real estate agent (不動産業者, fudousan gyousha) — either a buyer's agent or the seller's agent (dual agency is common in Japan).

The offer process typically involves two types of documents depending on the property type:

• 購入申込書 (Kounyuu Moshikomisho) — "Application to Purchase," used primarily for new-build (shinchiku) properties. An application fee of up to ¥100,000 may be required.
• 買付証明書 (Kaitsuke Shoumeisho) — "Letter of Intent" or "Letter of Purchase," used for pre-owned (chuko) resale properties. No payment is required at this stage and it is not legally binding.

Both documents are submitted through your real estate broker, not directly to the seller. Your agent fills in and forwards the form on your behalf.

Speed matters enormously. Japan's property market — particularly in Tokyo, Osaka, and other major cities — moves exceptionally fast. Desirable properties, especially those priced fairly or in premium locations, can receive multiple letters of intent within hours of listing. Being prepared to act quickly is not optional — it's essential.

For a deeper look at the legal framework, visit Can Foreigners Buy Property in Japan? Legal Rights and Restrictions.

What to Include in Your Offer Letter

Your letter of intent or purchase application should clearly specify several key pieces of information. Your agent will guide you through completing the form, but you should be prepared with the following:

Sellers generally do not entertain offers from buyers who haven't demonstrated at least basic financial readiness. If you're financing your purchase, having a mortgage pre-approval for foreigners in Japan in hand significantly strengthens your offer.

Negotiating the Price and Terms

Price negotiation in Japan operates differently than in many Western markets. While negotiation is possible, it is more restrained and culturally specific.

What you need to know about negotiating:

• Price reductions typically do not exceed 10–15% of the asking price
• Reductions must be logically justified — location drawbacks, older building standards (pre-1981 earthquake code), distance from train stations, or visible renovation needs
• Negotiations are conducted in writing through your agent, not in direct conversation with the seller — this is considered the respectful and proper approach
• If the seller won't budge on price, consider negotiating on other terms: included furnishings, a faster or slower closing timeline, or waiving certain contingencies

Once the seller reviews your letter of intent, they may counter, accept, or reject. If accepted, the seller's agent will generally not show the property to other buyers while you finalize the next steps — though this exclusivity is a professional courtesy, not a legal obligation.

For guidance on overall costs involved, see our article on Hidden Costs and Fees When Buying Property in Japan.

The Important Explanation Meeting (重要事項説明)

Before you sign any binding purchase agreement, Japanese law requires a licensed real estate agent to conduct a formal 重要事項説明 (Juyou Jiko Setsumei) — the "Important Explanation of Matters." This is a mandatory legal step and a significant consumer protection.

During this meeting, a certified real estate transaction specialist (宅地建物取引士, takken-shi) must explain:

• Full property details and legal description
• Zoning restrictions and building regulations
• Any existing encumbrances, liens, or easements
• Results of the property inspection
• All contract terms, fees, and conditions

For foreign buyers: This meeting is typically conducted in Japanese. You have the legal right to request an interpreter, though there may be associated costs. Some agencies specializing in foreign clients will provide bilingual agents or written translations. Do not sign the contract without fully understanding the terms — insist on translation if needed.

Learn more about Legal Procedures and Documentation for Japan Property Purchase for a full breakdown of the required paperwork.

Signing the Purchase Agreement and Paying the Deposit

Once both parties are satisfied with the terms and the Important Explanation Meeting is complete, you'll sign the 売買契約書 (Baibai Keiyakusho) — the formal purchase and sale agreement. This is the most critical legal step in the transaction.

Earnest Money Deposit (手付金, Tetsukikin):

At the time of signing, you are required to pay an earnest money deposit — typically 10% of the purchase price, though some sellers and situations call for higher amounts. If you can offer 15–20%, it strengthens your position, especially in competitive situations or when the seller needs liquidity.

What happens if either party backs out after signing:

• Buyer backs out: You forfeit the entire earnest money deposit
• Seller backs out: The seller must return double the deposit amount to you

This mutual penalty clause creates a strong incentive for both parties to complete the transaction. Japan does not generally have escrow services — the deposit goes directly to the seller or is held by the agent, depending on the arrangement.

The total timeline from signing to final settlement (property handover) is typically within 60–90 days, or as short as 4–6 weeks if you're completing the process remotely as a non-resident.

For more details on taxes due at this stage and ongoing ownership costs, read Property Taxes and Annual Costs of Owning Property in Japan.

Tips for Foreign Buyers Making an Offer in Japan

Foreign buyers face a few additional hurdles that Japanese buyers don't. Here are the most important considerations:

Work with the right agent. Not all real estate agents in Japan have experience working with foreign clients. Find an agency with bilingual staff and a track record of helping foreigners navigate the process. They will handle communications with the seller's side and help you avoid cultural missteps.

Get mortgage pre-approval early. Sellers and their agents view cash or pre-approved buyers as lower-risk. If you're financing, get your mortgage pre-approval sorted before you start making offers. Non-permanent residents typically need a down payment of 30% or more.

Understand the financial requirements. Total closing costs in Japan run 5–10% of the property value on top of the purchase price. These include agent commission (3% + ¥60,000 + consumption tax, paid by both buyer and seller), stamp duty, registration taxes, and judicial scrivener fees. Budget for these from the start.

Act decisively. Once you've found a property you want, don't delay. Have your documents ready, know your budget ceiling, and be prepared to submit your letter of intent the same day you view the property if necessary.

Consider the visa implications. Property ownership alone does not grant you any visa rights in Japan. However, your residency status can affect your financing options. See our guide on Visa and Residency Considerations for Property Buyers in Japan for details.

For additional guidance from experienced expats and professionals, Living in Nihon's comprehensive property and mortgage guide for foreigners covers many aspects of the buying process. The For Work in Japan housing guide for foreigners is another helpful resource for understanding housing in Japan as a foreign resident.

Step-by-Step Offer Checklist

Use this checklist to stay organized when making an offer on Japanese property:

For a full property buying journey from start to finish, refer to our Complete Guide to Buying Property in Japan as a Foreigner.

Frequently Asked Questions

Can foreigners make an offer on any property in Japan? Yes. Japan places no nationality-based restrictions on property purchases. Any foreigner — regardless of visa status or nationality — can submit an offer on any property. There are no special government approvals required.

Is a letter of intent legally binding in Japan? No. The 買付証明書 (Letter of Intent) is not legally binding. You can withdraw your offer without penalty before the purchase agreement is signed. Once you sign the 売買契約書 and pay the earnest money deposit, backing out will cost you that deposit.

How long does it take from offer to purchase agreement? Typically 1–3 weeks, depending on how quickly the seller responds and how smoothly the Important Explanation Meeting can be arranged.

What if I'm not in Japan? Remote purchases are possible. Many agencies can handle the process with you overseas, using video calls for the Important Explanation Meeting and remote document signing. Plan for approximately 6 weeks if completing the process from abroad.

Should I make an offer below asking price? It depends on the market and property. In competitive Tokyo neighborhoods, making a below-asking offer may cost you the property entirely. In slower markets or for older properties, there is more room to negotiate. Your agent's local knowledge is your best guide.

For detailed help navigating the mortgage financing side of your purchase, read our guide on Mortgages and Home Loans for Foreigners in Japan. For market context that helps you price your offer intelligently, see the Japan Real Estate Market Overview and Trends. And for information on buying in specific cities, explore our area guides — Buying Property in Tokyo, Osaka, and Kyoto.

Additional resources: Nippon Tradings: How to Buy Property in Japan as a Foreigner | Housing Japan: Buying a House in Japan as an Expat | Gaijin Buy House: Foreigner Mortgage Application Guide