Yuri Lee, a 30-something office worker, recently decided to transition from renting to buying a home. While using a licensed real estate agent is considered safer, she opted for a direct transaction recommended by friends. Lee found a suitable listing on a real estate platform: a 13-square-meter, one-bedroom apartment in the outskirts of Seoul. She quickly negotiated the sale price directly with the owner via chat, finalizing the deal at 330 million won. Since it was a direct transaction, there were no so-called 'brokerage fees.' If she had gone through an agent, she would have had to pay up to 1.45 million won (based on a maximum rate of 0.4%, which includes 1.32 million won in commission plus value-added tax), a saving that left her very satisfied.
Anyone who has bought or sold real estate knows how challenging the process can be until the final signature is affixed. As a result, most people choose to work with licensed agents. Despite the burden of brokerage fees, buying or selling a home worth millions cannot be treated like a simple grocery purchase.
However, trends are changing. Direct transactions in the real estate market are rapidly gaining traction. Listings for apartments frequently appear on the online trading platform Danggeun Market. What are the advantages of direct transactions compared to traditional real estate dealings that involve agents?
Rapid Growth of Direct Real Estate Transactions
According to statistics from the Ministry of Land, Infrastructure and Transport, there were 72,442 apartment transactions in Seoul from July of last year to June of this year, with 3,404 of those being direct transactions, accounting for 4.7% of the total. For multi-family and multi-unit dwellings, 6,004 out of 38,824 transactions (15.5%) were direct, while 458 out of 4,151 single-family and multi-family transactions (11.0%) were also direct. Although most apartment transactions still involve licensed agents, direct transactions are rapidly expanding, particularly in the multi-family and multi-unit sectors.
The demand for direct transactions is also evident on platforms. Data obtained from Danggeun Real Estate shows that the number of direct transaction listings in the first half of this year increased by 8.4% compared to the same period last year. Notably, the growth rate in the second quarter (April to June) reached 17.1%, indicating a significant upward trend.
The variety of direct listings is also increasing. Previously, direct transactions primarily involved small-scale deals like studio apartments or villas, but they are now expanding to include apartments and commercial properties. Reports indicate that the method of buyers and sellers directly contacting each other through real estate platforms is becoming more established.
The Allure of Zero Brokerage Fees
The most significant advantage of direct real estate transactions is the absence of brokerage fees. According to current regulations from the Ministry of Land, Infrastructure and Transport and Seoul city ordinances, the maximum brokerage fee rates for home sales vary based on the transaction amount. For transactions under 50 million won, the rate is 0.6%; for amounts between 50 million and 200 million won, it is 0.5%; and for amounts between 200 million and 900 million won, it is 0.4%. For transactions above 900 million won, the rates are tiered, with a maximum of 0.7% for amounts exceeding 1.5 billion won. For example, a 500 million won lease incurs about 1.5 million won in brokerage fees, while a 1 billion won sale incurs about 5 million won.
Thus, the larger the transaction amount, the greater the savings from avoiding brokerage fees. The highest recorded direct transaction on Danggeun Real Estate involved a hotel in Seogwipo, Jeju, sold for 5 billion won. If this transaction had gone through a licensed agent, the brokerage fee would have been approximately 45 million won, but in a direct transaction, the fee is zero.
Danggeun Real Estate, a leading platform for direct transactions, has been operating a community-based direct transaction service since establishing its real estate category in 2015. Since February of last year, it has also allowed local licensed agents to register listings, creating a structure that supports both direct and agent-assisted transactions. A representative from Danggeun stated, "Direct transactions are actively utilized by genuine buyers looking to save on brokerage fees and put in the effort themselves. At the same time, local licensed agents are using this as a channel to inform neighborhood residents about listings, leading to growth in both direct and agent-assisted transactions."
Which Platform to Use?
As the direct transaction market grows, competition among platforms is intensifying. Services are emerging that support the entire transaction process, from contracts to rights analysis, beyond merely providing direct listings.
The direct real estate platform 'Bokdeokbang' does not accept listings from brokerage firms and instead offers expert connection services for direct users. Bokdeokbang connects users with experts for various transaction stages, including home visits, rights analysis, contract drafting and review, registration tasks, and final payment processing, allowing users to selectively utilize necessary services. This structure enables direct transaction parties to connect directly with licensed agents, legal professionals, and rights analysis experts, allowing them to receive support for necessary procedures instead of paying brokerage fees.
Platforms like Naver Real Estate, Zigbang, and Dabang allow homeowners to register their listings directly. However, Zigbang shares the information of homeowner-registered listings with nearby brokerage offices, and licensed agents connect buyers or tenants, meaning that while homeowners do not need to visit multiple agencies, brokerage fees still apply as contracts are processed through agents.
Particularly, during the listing verification stage, experts accompany users to inspect for defects or review rights relationships, and during the contract stage, they assist with contract reviews and registration and final payment processing, focusing on addressing potential information gaps in the direct transaction process.
These platforms are also enhancing safety measures to minimize concerns that direct transactions are risky. Danggeun Real Estate mandates owner verification for personal direct listings and marks them as 'owner-verified' after cross-referencing with property registration documents. If someone other than the owner registers a listing, they must go through a verification process or submit a lease contract.
Services aimed at reducing risks during the contract process are also expanding. Danggeun Real Estate offers a secure payment service for deposits and a direct transaction checklist, and recently revamped its 'Easy-to-Read Property Registration' service to make property registration documents more understandable. A representative from Danggeun stated, "We plan to continuously enhance features that increase the reliability of listings and the safety of transactions to create a secure trading environment."
However, direct transactions require caution, as parties must handle rights verification and contract procedures that licensed agents typically manage. It is essential to thoroughly check property registration documents, building records, priority rights, and special contract clauses, and to manage the final payment process independently. Industry experts advise that even when utilizing the certification services and checklists provided by platforms, it is crucial to carefully review rights relationships and transaction conditions before finalizing contracts.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.