RetireJapan

captainspoke wrote: ↑Thu Jul 18, 2024 7:00 am 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...")

RetireJapan wrote: ↑Thu Jul 18, 2024 7:54 am

captainspoke wrote: ↑Thu Jul 18, 2024 7:00 am 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...")

What I have seen a lot is that a real estate company will buy a property, renovate it cheaply, and try to flip it.

Bubblegun wrote: ↑Thu Jul 18, 2024 10:15 am Yes i am seeing those kinds of properties and some have been stunning.

RetireJapan wrote: ↑Thu Jul 18, 2024 5:14 am

Bubblegun wrote: ↑Thu Jul 18, 2024 5:01 am 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.

RetireJapan wrote: ↑Thu Jul 18, 2024 12:10 pm

Bubblegun wrote: ↑Thu Jul 18, 2024 10:15 am Yes I am seeing those kinds of properties and some have been stunning.

Complete opposite for me: the renovations are cheap and look good but we'd need to re-renovate to fix the insulation, windows etc. so would rather have bought the (much cheaper) unrenovated property in the first place:?

Bubblegun wrote: ↑Thu Jul 18, 2024 1:54 pm

RetireJapan wrote: ↑Thu Jul 18, 2024 5:14 am

Bubblegun wrote: ↑Thu Jul 18, 2024 5:01 am 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.

I see. Seems like a typical salesman problem. As long as commission is involved, and not a flat fee, his main interest will be themselves. Kinda sounds familiar.

RetireJapan wrote: ↑Thu Jul 18, 2024 12:10 pm

Bubblegun wrote: ↑Thu Jul 18, 2024 10:15 am Yes I am seeing those kinds of properties and some have been stunning.

Complete opposite for me: the renovations are cheap and look good but we'd need to re-renovate to fix the insulation, windows etc. so would rather have bought the (much cheaper) unrenovated property in the first place:?

I'm with you on that. I am not interested in having a total renovation done before we move in and I'm quite happy to sit my bottom down, pop down to the DIY shop, and have a go at some stuff. Nothing electrical, gas, or plumbing-wise. But a lick of paint, wallpapering, door knobs, doors etc and bigger jobs over a couple of years. Some homes look as though they haven't had a lick of TLC in decades. One appeared to have been done on the cheap side cause the tatami floor was replaced with flooring, and while it looked nice it felt bouncy. Quite uncomfortable!
Even the agent, estate agent said it was done cheaply. ( is that a sign she's really honest). I'm even happy to have a go at painting the outside of the house. For anything structural like caulking outside, I think I'd get someone to do that.

I stall want to define the word AGENT. Can I confirm this as "my 不動産？
Not a word I am used to as we would use a lawyer or solicitor!

captainspoke wrote: ↑Thu Jul 18, 2024 7:00 am 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...")

Moneymatters wrote: ↑Fri Jul 19, 2024 6:50 am

captainspoke wrote: ↑Thu Jul 18, 2024 7:00 am 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...")

I’ve only been looking in one specific area, but I’ve noticed there does seem to be a minimal level of reform expected to make a place “immediately livable”. The places that spend more on this reform are obviously at a higher price point but it’s still function over form unit bath, etc, etc.
The “designer house” stock of the same age is typically sold as is (Pink basins and regulation chandeliers in the Genken and master bathroom.)

I think the pre-reform state might not have garnered acceptable offers or people were guided ahead of first listing.
Being immediately livable is probably the only value some places have. Then you can occupy and DIY or save until a rebuild. The most basic looking combined bath, toilet and “kitchen” reforms I’ve seen could generously be referred to as “retro” and likely accomplished under 1.5mil all in.

I’ve been tracking properties in the same area for several years now. They can be listed for 2 years before an initial price drop. I’d guess the estate agents are pretty passive overall.