How to Buy a House in Japan

The steps, in order

1. Work out the real cost first. The purchase price is only part of it. On top sit the 諸費用 (transaction costs): agent fee, registration and acquisition taxes, the scrivener, stamp duty and any loan fees, commonly adding up to a meaningful percentage of the price. Run your numbers through the home-buying cost calculator so the figure you plan around is the all-in one, not the sticker.
2. Sort out financing, if you are not paying cash. If you need a mortgage (住宅ローン), your visa or PR status and your employment history matter here, at the lending stage. Many buyers get an informal pre-check (事前審査) before they seriously shop, so they know their likely budget. How that works for foreign residents, and which lenders are more open, is covered in the home loans for foreigners guide.
3. Search for a property. Most listings sit on the big portals (SUUMO, at home, LIFULL HOME'S), though the same property often appears across several agents because of the shared レインズ (REINS) network. A bilingual or foreigner-friendly brokerage can save a lot of friction. Decide early between a used home (中古, the large majority of the market) and a new build (新築). See new vs used.
4. View it (内見) and check the things that cost money later. For any home: whether it meets the post-1981 earthquake standard (新耐震基準), the land's road access and whether it is 再建築不可 (cannot be rebuilt), and the condition of the structure. For a mansion (マンション): the monthly management and repair-reserve fees (管理費・修繕積立金) and the health of the building's reserve fund.
5. Make an offer (買付証明書). You submit a letter of intent with your price and conditions. Price negotiation on used homes is normal. Nothing is binding yet at this point.
6. Hear the 重要事項説明 and sign the contract (売買契約). Before you sign, a licensed 宅地建物取引士 must explain the "important matters" document covering the property's legal and physical facts. At signing you pay a deposit (手付金), customarily around 5 to 10 percent of the price, which is credited toward the purchase. Back out without cause after this and you generally forfeit it.
7. Complete the loan (本審査). If financing, the formal application and approval happen after the contract. Fire insurance is arranged before handover.
8. Settle and take ownership (決済・引渡し). On settlement day you pay the balance, a 司法書士 (judicial scrivener) files the ownership registration (登記) at the Legal Affairs Bureau, and you receive the keys. The registration tax is paid here.
9. Mind the bills that arrive afterward. The real-estate acquisition tax (不動産取得税) is assessed and billed by the prefecture months after you buy, so set money aside for it. From then on you owe annual property taxes (固定資産税 and, in cities, 都市計画税). The ongoing property taxes guide explains these.

A few things worth knowing before you start

• Used dominates the market. Most homes that change hands are 中古. Japanese houses are often treated as depreciating assets, and wooden buildings in particular lose paper value over a few decades, which is why older houses can look strikingly cheap. That is a cost picture to understand, not a reason to buy or avoid.
• The 1981 line matters. Buildings confirmed under the current earthquake standard (新耐震基準, from June 1981) are treated very differently from older ones, for both safety and for some tax reductions.
• The agent fee is capped. A brokerage's commission is limited by law. Buying a new home directly from the developer means no agent fee at all. See the agent fee explained.
• Renting is a perfectly normal alternative. This site never tells you to buy. If you are weighing it, read rent vs buy in Japan and, for the renting side, our sister tool for move-in costs.