We have outlined Q&A on Japanese auction system and how to participate in it below. Please let us know if you have any question.
Few years back, the BID auction has been occupaied by licensed real estate agents but recently more and more individual participate in and purchase real estate through the BID auction system for both residential or investment purposes.
Yes, thanks to recent amendment on Japanese law, a non-Japanese national who both lives in and even out of Japan can participate and purchase property through the auction system only if you can provide a document certifying your residency by government authority or embassy in your current domicile. If living in Japan, a residence certificate(住民票）is required.
Below is summary of both merits and demerits.
|Merit 1||Generally, property sold by the BID auction is set 30% cheaper than market price.|
|It is safe to bid because BID auction is conducted by district court.|
|Demerit 1||Until the transfer of ownership is completed, you can't step inside to preview the property thus you can not estimate how damage the property has and how much renovation is actually required.|
|Demerit 2||You need to bear cost associated to delinquent management fee and overdue fine that deptor haven't paid.|
|Demerit 3||If the property is occupied by either deptor or tenant, it is your responsibility to negotiate and urge the occupant to leave. If we couldn't reacht to agreement, legal procedures can be required.|
|Demerit 4||If you win the bid, you need to pay remaining amount only by cash.|
We, as licensed realtor, usually advise individual to consult with trustable agent to participate in the auction to avoid unexpected unnecessary expenses and inconvenient legal issues. Our goal is to give you an opportunities and confidence by providing our knowledge and expertise so you can achieve positive results. Our service includes per below.
There’s no fee until you acquire property. We require a small deposit to retain our services and cover expenses for postal and transportation fee but all fees will be explained in advance and we do not required it till the successful completion of our services. Our service fee is as follows.
|Purchased Price||Fee rate|
|Less than JPY2,000,000.||Purchased Price × 5% + Tax|
More than JPY2,000,000. Less than JPY4,000,000.-
|Purchased Price × 4% + Tax|
More than JPY4,000,000.
|Purchased Price × 3% + Tax|
Due to the debtors’ lack of funds, necessary maintenance and repairs to the property, in many cases, have been neglected. Therefore, renovation inside the property is often required to a greated or lesser extent and these cost should be calculated into your budget.
It depends on size of the property but following cost can normally be charged when renovating about 18 square meter one room type apartment.
Re-wallpaper a room: JPY70,000- 100,000.-
Remove old wooden floor and spread new one: JPY150,000- 200,000.-
Removing old bathroom + lavatory pan and replace new ones: JPY500,000- 1,000,000.-
Removing old kitchen and replace new one: JPY150,000- 300,000.-
Total: Approximately JPY JPY1,600,000.-
If you use normal reform vendor and conduct full reform, the total cost could be from JPY1,000,000 up to 1,500,000. However, we consider that full renovation is not always required unless it is necessary to do so. We believe that necessary renovation should be done only enough to the extent that tenant get satisfied to live. We will give you further information on the renovation fee after having consulting with you.