Buying an old home. Loan.

[Deep Blue]

You’re wise not to rush and not to be rushed.

If you don’t know what the land/house ratio is the agent should be able to give you a good idea. You can verify this yourself by looking at the land transaction record in your area… and talk to some builders.

They’ll typically quote a ballpark price per tsubo of construction so if you tell them the size and materials (wood frame or concrete etc) they’ll give you a rough price for new build.

Armed with these two pieces of info you can get a fair idea if you’re paying for land and getting the old structure for free (this is my guess on a 32 year old wooden house) or whether there is some residual value in the construction you’re stumping up for.

[Bubblegun]

So a little update on the situation. We applied for a home, but unfortunately we didn’t make it in time.
So we looked some others a little bit more expensive. But might be better, as it’s about bigger. But the places needs clearing, a fine if garden work, and it’s been on the market for almost a year about10 months now.
We also found out our parents can help and that’s going to be interest free loan. But I’ll still need to use some of the Pre-NISA fund money.

Someone mentioned “do we have an agent?”
Not sure what we mean by an agent. We went to the estate agent, and they showed us a couple of places and also got in contact with another estate agent (who were listing the place) to arrange viewings. Am I correct in saying they are our agent? Normally I use the word solicitor!
Now also how does the commission work? How can the agent work on our behalf and the sellers behalf?
Would like some more pointers on that part, commission?
Thank you once again.

Btw has anyone bought house and done DIY?
Not a section we have here it would be interested in your experience.

Any idea how much it would cost to clear a garden?

[Deep Blue]

I believe commission is semi-fixed, at 3.3% plus 66k. Not heard of this being able to be revised down.

This is levied on both buyer and seller, so the agent can make out like an absolute bandit. And yes, there is an obvious conflict of interest with a single agent representing parties on both side of a transaction... but it seems very common here.

You can find more info on the fee's here.

https://www.kencorp.com/buy/guide/purchase/fees.html

They say to budget 5-8% of the purchase price in fee's. I think our total was around 6% in the end.

Garden - just get a quote from a local firm.... not likely to be a material amount.

[Tsumitate Wrestler]

I believe commission is semi-fixed, at 3.3% plus 66k. Not heard of this being able to be revised down.

This is levied on both buyer and seller, so the agent can make out like an absolute bandit. And yes, there is an obvious conflict of interest with a single agent representing parties on both side of a transaction... but it seems very common here.

You can find more info on the fee's here.

https://www.kencorp.com/buy/guide/purchase/fees.html

They say to budget 5-8% of the purchase price in fee's. I think our total was around 6% in the end.

Garden - just get a quote from a local firm.... not likely to be a material amount.

Double handed dealing, or "fencing", when an agent attempts to represent the buyer and seller is common in Japan. It often is said to benefit the buyer, over the seller.

Avoid this whenever possible, and use your own independent agent.

[Bubblegun]

I believe commission is semi-fixed, at 3.3% plus 66k. Not heard of this being able to be revised down.

This is levied on both buyer and seller, so the agent can make out like an absolute bandit. And yes, there is an obvious conflict of interest with a single agent representing parties on both side of a transaction... but it seems very common here.

You can find more info on the fee's here.

https://www.kencorp.com/buy/guide/purchase/fees.html

They say to budget 5-8% of the purchase price in fee's. I think our total was around 6% in the end.

Garden - just get a quote from a local firm.... not likely to be a material amount.

Double handed dealing, or "fencing", when an agent attempts to represent the buyer and seller is common in Japan. It often is said to benefit the buyer, over the seller.

Avoid this whenever possible, and use your own independent agent.

It is said to benefit the BUYER? Not the seller?

[RetireJapan]

It is said to benefit the BUYER? Not the seller?

That kind of agent is going to want the transaction to go through as soon as possible, so might push for a lower price than the buyer might have got otherwise.

[Tsumitate Wrestler]

I believe commission is semi-fixed, at 3.3% plus 66k. Not heard of this being able to be revised down.

This is levied on both buyer and seller, so the agent can make out like an absolute bandit. And yes, there is an obvious conflict of interest with a single agent representing parties on both side of a transaction... but it seems very common here.

You can find more info on the fee's here.

https://www.kencorp.com/buy/guide/purchase/fees.html

They say to budget 5-8% of the purchase price in fee's. I think our total was around 6% in the end.

Garden - just get a quote from a local firm.... not likely to be a material amount.

Double handed dealing, or "fencing", when an agent attempts to represent the buyer and seller is common in Japan. It often is said to benefit the buyer, over the seller.

Avoid this whenever possible, and use your own independent agent.

It is said to benefit the BUYER? Not the seller?

Their incentive will be to sell quick, they push for a slightly cheaper than market sale price. This will lead to a larger pool of buyers. They accept applications, screen out anyone they don't represent, and present their own client to the buyer.

Not everyone abuses the system, but these practices definitely exist.

Why would you do business with someone who has a clear conflict of interest?

[Bubblegun]

Double handed dealing, or "fencing", when an agent attempts to represent the buyer and seller is common in Japan. It often is said to benefit the buyer, over the seller.

Avoid this whenever possible, and use your own independent agent.

It is said to benefit the BUYER? Not the seller?

Their incentive will be to sell quick, they push for a slightly cheaper than market sale price. This will lead to a larger pool of buyers. They accept applications, screen out anyone they don't represent, and present their own client to the buyer.

Not everyone abuses the system, but these practices definitely exist.

Why would you do business with someone who has a clear conflict of interest?

Sorry, I misinterpreted the perspective.
yes there is a clear conflict of interest.
My partner seem to think there is not conflict of interest in having the same person do everything. ( i know, i know. this is Japan, and I'm not she is to be obeyed.) LOL
So, we have been going to an estate agent, and HE/She has been arranging for us to see other places, that are being advertised by another estate agent.

1) So the seller's estate agent gets the commission, from the BUYER, and SELLER,
2)Our independent estate agent also gets a commission from us too, but we would be hoping our estate agent would work on our behalf.Is my understanding correct?

To be honest the wife hasn't a clue and just goes along with the flow, and admits she has no clue about money, which puts the onus on me to try and be financially aware.

So any advice and help is appreciated. When you say AGENT, you mean the estate agent. Right?

[Tsumitate Wrestler]

It is said to benefit the BUYER? Not the seller?

Their incentive will be to sell quick, they push for a slightly cheaper than market sale price. This will lead to a larger pool of buyers. They accept applications, screen out anyone they don't represent, and present their own client to the buyer.

Not everyone abuses the system, but these practices definitely exist.

Why would you do business with someone who has a clear conflict of interest?

Sorry, I misinterpreted the perspective.
yes there is a clear conflict of interest.
My partner seem to think there is not conflict of interest in having the same person do everything. ( i know, i know. this is Japan, and I'm not she is to be obeyed.) LOL
So, we have been going to an estate agent, and HE/She has been arranging for us to see other places, that are being advertised by another estate agent.

1) So the seller's estate agent gets the commission, from the BUYER, and SELLER,
2)Our independent estate agent also gets a commission from us too, but we would be hoping our estate agent would work on our behalf.Is my understanding correct?

To be honest the wife hasn't a clue and just goes along with the flow, and admits she has no clue about money, which puts the onus on me to try and be financially aware.

So any advice and help is appreciated. When you say AGENT, you mean the estate agent. Right?

You just need to make sure your agent (and their company) represents you, and not the seller. You would not be paying for the seller's agent, just your own.

The seller's agent only gets both commissions if they represent the buyer and the seller.

....

The typically flow for this is not always nefarious. The property is listed with a single company via Summo etc. An interested party contacts the listing agent. The listing agent offers to handle everything, the end. Everyone is happy.

However, I prefer not to rely on the good faith of others when the biggest purchase of my life is on the line. Even if the imbalance may be said to benefit me.

[captainspoke]

I've seen older places that have had some reform work done, that to me doesn't really add much. But it may fancy a place up just enough to move more quickly, or show better. I doubt that the seller comes out ahead on that spending. So I wonder if sellers get some pressure to spend on this by real estate agents? ("We'll only list it if you...")