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Why Many Brokers Refuse to Work with Overseas Buyers

Many overseas buyers have likely experienced this: you inquire about a property listed on a portal site, only to be told, “We don’t deal with foreigners,” or receive no reply at all.

In this column, I’d like to explain why this happens, whether there are any solutions, and what can be done from a practical perspective based on my own experience.
 

To begin with, many brokers who list properties on major real-estate portals are not the listing brokers who have a direct contract with the seller.
If they are not the seller’s broker, they act as the buyer’s broker in the transaction and receive a commission only from the buyer’s side (a “single-sided” commission).
 

For brokers, working with overseas buyers—especially those who are non-residents and do not speak Japanese—means more communication, more effort, more documentation, and more time.
At the same time, the risks increase.
Since the cost-to-revenue ratio is poor, overseas clients are often seen as high-risk, low-return.
For high-value transactions, the potential return may justify the effort, but in the general market—and especially for low-priced properties—this concern becomes far more pronounced.
This is one of the main reasons many brokers decline to handle overseas buyers.

From the seller’s side, the situation is similar.
If the listing broker also represents the buyer, they can earn commissions from both sides (“double-sided commission”), which slightly offsets the cost issue—but the level of risk remains the same.
Some may accept overseas buyers on the condition that the buyer provides their own interpreter, but even then, most brokers prefer to focus on Japanese clients, where communication and expectations are easier to manage.
 

In many cases, sellers themselves also choose to avoid overseas buyers.
Their main concerns are communication issues and the potential for neighborhood or community conflicts.
These are personal and practical considerations that cannot easily be overcome by a broker’s persuasion or negotiation.

In short, brokers decline from a business-efficiency perspective, while sellers decline out of practical concern.
So, what can be done about this?
 

Why Negotiation Rarely Works

As mentioned above, if the seller personally decides not to sell to foreign buyers, there is almost no room for negotiation.
And even for brokers who appear on portal sites but are actually acting on behalf of buyers, it is usually difficult to get them to accept an overseas client.
The reason is simple: a broker cannot properly perform their duties if they cannot communicate effectively with the buyer or ensure the buyer fully understands the process and documents.

The Real Reasons Behind Brokers’ Reluctance

As someone who also works in this industry, I fully understand why many Japanese brokers hesitate to work with overseas clients.
It’s not just about the language gap.
The biggest concern is how well the buyer can understand Japan’s culture, customs, local rules, and common sense—and the uncertainty around that is perceived as a major risk.
 

Supporting an overseas buyer properly requires time, effort, and experience.
But most brokers in Japan work solely on commission, without a system or structure that allows them to provide such “non-brokerage” support.
Many agencies lack the know-how to offer paid consulting or communication services, and many brokers simply don’t speak English.
In short, it’s not that they won’t provide these services—it’s that they can’t.

Moreover, since many Japanese brokerage firms are locally based, a single incident or complaint involving a foreign buyer could damage their reputation within the community.
If they cannot provide sufficient explanation or follow-up to prevent problems, they would rather decline from the beginning.
 

That’s why seller-side brokers who initially refuse overseas buyers often become open to a transaction when there’s a dedicated buyer’s-side broker involved.
In my own experience, many deals have become possible precisely because I took on that buyer’s-side role.
 

Typically, I contact the seller’s broker directly rather than the “advertising broker” who simply lists the property online.
On numerous occasions, I’ve been told:

“We usually refuse inquiries from overseas buyers, but since you’re handling the buyer’s side, we have no problem proceeding.”

Understanding the Gap

From my own experience and from what I’ve heard from other professionals, there is a significant gap between how brokers view overseas buyers and what overseas buyers expect.
To many foreign buyers, the situation may seem unfair or unreasonable.
It’s natural to feel frustrated by the differences in systems, culture, or common sense.
But the reality is that this is Japan—with its own laws, culture, and social norms.
 

For non-resident, non-Japanese-speaking buyers, it’s important to understand the harsh reality of being perceived as “high-risk clients,” and the reasons behind it.
With that understanding, buyers can then plan a smarter, more strategic approach to finding and purchasing property in Japan.

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