In many cases, people are troubled about real estate acquired by inheritance, saying that they are having trouble handling it or want to sell it but do not know what to do with it. If you inherit a family home or a relative's house but do not plan to live in it, the property must be maintained and managed as a vacant house. However, if an aging vacant house is left unattended, the building will become severely damaged and may pose a safety hazard. In addition, just owning the property incurs annual property taxes and maintenance costs, and regular ventilation and cleaning is difficult to manage, especially if the property is located far away. As a result, the real estate you have inherited may feel like a burden.
One solution to these problems with inherited real estate is to use a real estate purchase service. This article explains the mechanism and general flow of "real estate purchase," in which inherited real estate is purchased directly by a specialist, and details the differences from sale by intermediary, the merits of purchase, and points to note when using this service. It also touches on the types and conditions of properties for which real estate purchase is possible, as well as points on how to select a reliable purchasing agent. Finally, the features of INA will be introduced as specific examples. We hope you will find this information useful for those who are concerned about the effective use of inherited real estate.
If you suddenly become the owner of real estate through inheritance, you will face a variety of unforeseen challenges. The first typical concern is the aging of the property. Older detached houses, for example, are often already damaged at the time of inheritance and will deteriorate further if left unattended. There is also the risk of leaks and termite damage, which can cause safety and sanitation problems.
Next, cases where the property is located far away are another major challenge. If the heirs live in an area far from the property, it is not easy to visit and manage the property on a regular basis. It takes time and effort to maintain a vacant house in good condition, such as taking care of the plants and trees in the garden, cleaning the inside and outside of the building, and inspecting the facilities. If the property is located far away, the burden of managing it is heavy, and many people have trouble taking care of it adequately. In addition, if they do not know anyone in the neighborhood and cannot keep track of what is going on, they may have difficulty noticing trespassing or damage to the property.
Another concern is the cost burden that comes with holding on to inherited real estate. Taxes such as property tax and city planning tax will be levied every year as long as you continue to own the property. If the building deteriorates, repair costs will also be incurred, and if the property is left unoccupied for a long period of time, there is a possibility of receiving corrective guidance from the government or having the preferential property tax treatment removed, resulting in a significant increase in the amount of tax due. Compared to the burden of these maintenance and management costs, if you continue to not be able to utilize your real estate, you may feel that you are losing money just by having it.
In addition to living in the property yourself, there are other options for utilizing inherited real estate, such as renting it out or selling it. However, rental management involves the hassle of ongoing management and vacancy risk, and requires specialized knowledge. On the other hand, even when selling, it can be difficult to find a buyer for a dilapidated property or a property with special conditions in the usual way of requesting a real estate company to act as an intermediary and look for a buyer. What you want to consider in these situations is a real estate purchase service. Below, we will take a closer look at the structure and flow of real estate purchase, as well as the differences and merits between it and agency.
Real estate purchase is a sales method in which a real estate company (buyer) becomes a buyer and buys your real estate directly. In layman's terms, it is like a "direct trade-in of real estate," and it is a system in which a real estate company purchases a housing for the purpose of resale. In a normal real estate transaction, it is common for a real estate company to search for a buyer as a mediator, but in the case of a purchase, the search for a buyer is omitted and the real estate company buys the property immediately, which is a major feature.
The general flow of sale using a purchase service is as follows.
Inquiry and assessment request - First, contact the company conducting the real estate purchase and request an assessment of the property. If the location, type, and outline of a housing are told, it may be possible to receive an indication of a simple assessed value price. In the case of inherited properties, a formal contract cannot be concluded until the inheritance registration (name change) has been completed, so consult with the company if necessary.
On-site survey and price presentation - A representative will visit the site to conduct a detailed survey of the property's condition and rights, and a formal purchase price presentation will be made. The price is calculated based on comprehensive consideration of the shape of the land, the deteriorated condition of the building, the surrounding market rate, and other factors. If the seller is satisfied with the offered price and conditions, the seller applies for the purchase and proceeds to the contract procedure.
Conclusion of a sales contract - Once the terms and conditions presented are agreed upon, a sales contract is concluded with the real estate company. The contract will clearly state the property, the sales price, the time of delivery, and the handling of liability for non-conformity to the contract. In many cases, the seller's liability for non-conformity to the contract (former liability for defects) is waived in the case of purchase, and the property is basically delivered as is.
Settlement and delivery - After the contract is signed, the settlement date (the date of payment of the balance of the purchase price) usually occurs within a few days to a few weeks. The sales price is paid by the real estate company, and at the same time, procedures for registration of transfer of ownership and delivery of the property (delivery of keys, etc.) are carried out. This completes the sale, and the real estate becomes the property of the buyer.
The above is the basic flow of the process. In some cases, the contract and settlement can be completed within a few days of the appraisal request, and you can get the proceeds in a short period of time. This is a particularly attractive system for those who want to let go of inherited real estate and organize themselves lightly, or when the deadline for payment of inheritance taxes is approaching and they want to quickly convert it into cash.
In a real estate purchase, there are various merits which are not in sale by general agency. Here, based on the difference from agency, the advantage of using a purchase is arranged. In addition, we will also explain the points to note that you should be aware of.
Overwhelming sale speed - The biggest merit of purchase is the speed to sale. Because there is no need to search for a buyer, if conditions are met, the property can be sold for cash in as little as a few days. Compared to an agency sale, which takes several months to find an ordinary buyer, the ability to obtain funds quickly is a major advantage. Even if the deadline for payment of inheritance taxes is approaching or you do not have time to manage the property for a long period of time, a purchase can solve the problem speedily.
It is possible to sell it as it is - In purchase, since delivery in the present state of a housing is basically admitted, it is not necessary to perform reform and the disposal of unnecessary articles beforehand. In the case of brokerage, you may try to improve the impression of the property as much as possible by repairing dilapidated facilities or carrying out house cleaning, but with purchase, you can save the time and expense. Even if there are many leftover items (remaining furniture and luggage) in the inherited property, some buyers may be able to accept the property as is. The appeal for sellers is the ease of being able to sell the property without any hassle.
Mediating fee is unnecessary - In a usual mediating sale, 3% of the sales price + 60,000 yen (tax not included) is charged as a mediating fee to a real estate company at the time of conclusion of a contract. However, since a real estate company becomes a direct buyer in a purchase, a mediating fee does not occur. For example, when a housing is sold for 30 million yen, a commission payment of approximately 1,050,000 yen (including tax) is necessary if it is agency, but if it is purchase, the burden will become zero. It can be said that it is also an advantage in terms of the amount of take-home pay.
Avoidance of defect warranty/contractual non-conformity liability risk - In a purchase, it is common for the seller's contractual non-conformity liability (conventionally called defect warranty liability) to be exempted from the contract. It is also safe in the sense that it is less likely to develop into a problem such as "I was charged for repair costs because a leak was found later," as in private transactions, and there is less worry after the sale. Since it is a sale against a contractor who is a professional, the price is set by incorporating the fact that, in principle, defects will be handled at the seller's own risk. Therefore, the seller has the advantage of being able to let go of the property as it is without worrying about minor defects.
When selling through an intermediary, there is a possibility that the sale will be known in the neighborhood because the property information will be posted on advertising sites and flyers, and many people will visit the property to view it. Especially when selling a family home in the countryside, some people may feel that they do not want their surroundings to know. On the other hand, with buy-back, the vendor only needs to visit once for an appraisal, and the property can be sold immediately without being known to neighbors, as no advertising is required. For those who value privacy, purchase is also an attractive option.
As you can see, there are many advantages to real estate purchase, but on the other hand, it is also important to understand the cautions and disadvantages. The biggest caveat is that the sale price still tends to be lower. Since a buyer needs to make a profit by reselling the purchased real estate, a purchase offer is made at a "purchase price" that is inevitably lower than the market price. Generally speaking, if the sale price in agency is set at 100%, the purchase price is often set at approximately 70-80% of that. The key point is whether you can accept to let go of the property at a price lower than the market price in exchange for a speedy sale and certainty.
In addition, the asking price may vary from one vendor to another. In particular, since evaluations are divided depending on the location and condition of the property, it is important not to make an immediate decision with only one company, but to request assessments from multiple buyers and compare the results. It is important to select a reliable company by checking whether the purchase price is not extremely low and whether the company can explain the basis for the appraisal. It is important to make a decision that is appropriate for your situation, taking into consideration that while a purchase can be sold quickly and reliably, concessions must be made in terms of price.
Some may wonder, "Will my property sell?" However, real estate buyers target a wide range of properties. In many cases, even properties that tend to be shunned by ordinary buyers can be purchased by buyers. Here are some examples of properties that can be purchased.
Old detached houses - Even detached properties that are decades old and have deteriorating buildings can be purchased. Old houses are difficult to find buyers through normal brokerage, but a buyer will purchase the entire land on the premise that it will be dismantled and remodeled. Even if the property needs to be demolished, the buyer can rest assured that the builder will bear the demolition costs and purchase the property after anticipating that the land will be cleared. It is worth consulting with a buyer instead of giving up on the idea that it is difficult to sell an old property as is.
Non-reconstructable properties - Specialized buyers can also handle "non-reconstructable" properties that do not meet frontage road requirements and cannot be newly constructed. Although financing is difficult to obtain for individuals and demand for non-renovable properties is limited, vendors may purchase them with a view to utilizing the land or turning them into income-producing properties (e.g., parking lots or renovating existing buildings). Such properties, which are difficult to find buyers for in a normal sale, may be realized as cash if they are purchased.
Leasehold properties - Properties with leasehold rights, where the building is yours but the land is leased from another party, are also eligible for purchase. Leasehold properties are generally avoided because of the complexity of the rights involved, but a buyer has the know-how to coordinate with the landowner and purchase the rights to the property. Even if the lease term is short or the leasehold is based on the old law, it is a good idea to first contact a company that will consider purchasing the property.
Accidental properties - So-called accidental properties (properties with psychological defects such as suicides, incidents, accidents, etc. in the past) can also be sold if they are purchased. Accidental properties tend to be much cheaper than the market price when sold through an agency because of the notification requirement, and it tends to take a long time before they are sold. During this time, maintenance costs such as property taxes will also increase. If you purchase the property, the price will be even lower, but the property can be sold in a short period of time, making it an effective means for those who want to let go of the property quickly and free themselves from the burden of maintenance costs. Some buyers have rehabilitation plans specializing in accident properties, and the more complicated the property is, the greater the need for purchase.
In addition, there are many other cases in which a purchase is possible even for properties that are unsuitable for normal market distribution, such as properties with complicated rights, properties with only co-ownership, and properties where the owners of the land and building are different. A buyer will assess the potential of real estate from the perspective of a professional, so if you are wondering, "Can I sell even such a property...?
When considering a real estate purchase, it is very important to choose the right vendor. In order to select a reliable company that you can do business with with with peace of mind and that will purchase the property at a fair price, pay attention to the following points.
Check the track record and areas of expertise of the company - Different buyers specialize in different types of properties and in different areas. For example, some companies focus on purchasing condominiums, while others actively purchase detached houses and land. If the property you inherited is a detached house, it is important to choose a company that has extensive experience in purchasing detached houses. Buying detached houses is more difficult and requires more experience than buying condominiums, so companies with more experience tend to have more know-how and can buy at a fair price. Before making a request, check each company's website to find out their track record and the types of properties they have handled, and narrow down the list to those that seem to be a good match for your property.
The reality is that there are few large companies that can deal with buyers anywhere in the country, and many companies are community-based. Companies with a wealth of experience in the area will have an excellent view of the market and will be able to offer an appropriate price. Inexperienced companies, on the other hand, tend to offer a low price with excessive risk at the time of resale. To find a reliable company in the property area, you can use an Internet search to find candidates by looking up "real estate purchase XX city" and so on. Also, it is convenient to use a lump-sum assessment site, which will introduce you to contractors who can handle the purchase in that area. In any case, by choosing a company with a wealth of local experience, you can expect a convincing price and a smooth response.
Transparency and explanatory power of the appraisal - You can trust a company that can properly explain the basis of the purchase appraisal value. When asked about the breakdown of the asking price (whether it is based on the land value, how much value is placed on the building, how much is deducted from the assumed renovation cost, etc.), be wary of a vendor who cannot answer clearly. A good company will carefully tell you the reason for the appraisal price based on local market data and resale strategies. In addition, it is safer to avoid a contractor who excessively hastens a contract, such as "This price if you contract today. Since price judgment is more difficult in purchase than in brokerage, transparency of appraisal and sufficient explanation are important points in selecting a vendor.
Follow-up and supplementary services are also important - It is reassuring to know that the vendor will not simply buy the property and be done with it, but will also provide services that are attuned to the seller's circumstances. For example, some companies offer follow-up services such as assistance with inheritance registration and surveying if they have not yet been completed, help with cleaning up and removing the property, and tax advice after the sale. An increasing number of companies are able to offer leaseback services (a system whereby the buyer continues to rent the house after the sale), and in some cases, they can offer suggestions on how to live in the house after the sale. In some cases, they will offer suggestions for living after the sale. Whether or not they offer flexible services that meet your needs will also be a factor in your choice of a builder.
As mentioned above, it is important to compare the appraisal prices of multiple companies rather than settling on one from the start. By negotiating with other companies after knowing their prices and responses, you can choose conditions that are truly satisfactory. If you have time to spare, you can ask around 2 or 3 companies to determine which companies are strong in the area and which companies are aggressive about the property. At that time, you should be wary of contractors who offer too high an appraisal value. There have been reports of problems such as negotiated reductions or cancellations just before signing a contract, so be wary of high offers that are extremely far from the market price, and judge whether the company is trustworthy overall.
By selecting a reliable buyer based on the above points, you can proceed with the sale of inherited real estate with peace of mind. Next, let's look at the features of INA as an example of a specific company.
One company you can rely on when considering the purchase of inherited real estate is INA, a general real estate company with a proven track record in high-end leasing and sales brokerage, offering flexible real estate purchase services that leverage the expertise and network it has developed. Here are some of its features.
INA is staffed with professionals who are experienced in real estate transactions and can quickly respond to your inquiries, assessments, and contracts. INA is also able to provide careful consultation regarding inherited properties, so you can feel at ease even if this is your first time selling real estate. The staff is well versed in property rights and legal procedures, so you will be reassured that they can provide one-stop support for cases requiring inheritance registration and boundary determination.
INA's strength lies in its ability to offer proposals for the management and utilization of purchased real estate, rather than simply buying it and calling it quits. We offer peace of mind to those who are concerned about what will happen to the land after it is sold, by presenting a plan for its future utilization. In fact, the company purchases properties under a variety of scenarios, including projects to renovate the purchased property to increase its asset value and cases where the property is effectively utilized as a site for redevelopment. For sellers, this is more than just a sale, as they are shown the possibility of effectively transforming their valuable real estate. We also provide peripheral services such as post-sale tax consultation and assistance in finding a new home, if necessary, for total peace of mind.
Know-how cultivated in real estate for the ultra-wealthy - INA has extensive experience in the high-end real estate market for the wealthy and ultra-wealthy. The know-how gained from this experience is utilized in every transaction, including the appropriate valuation of real estate, the building of unique networks, and the proposal of creative ways to utilize real estate. For example, in some cases, our marketing capabilities cultivated through the purchase and sale of high-value properties enable us to identify the potential value of inherited real estate and purchase it at a price that no other company can match. In addition, our multilingual capabilities and connections with global investors enable us to utilize real estate from a wide range of perspectives, both domestically and internationally. Backed by this advanced knowledge and network, INA is able to flexibly handle special properties that would normally be difficult to find a buyer for, and to offer the best solution for the seller.
Thus, INA is a company that demonstrates a high degree of expertise and hospitality in the purchase of inherited real estate. If you consult with a company that is equipped with prompt and courteous service, the ability to make proposals with an eye on after-sales service, and solid know-how honed in the wealthy market, you will be able to entrust the disposal of complicated inherited real estate with peace of mind.
When you are ready to let go of real estate acquired through inheritance, the use of a real estate purchase service is a great option. For those who are worried about the burden of managing aging and distant properties, sale by purchase can be a speedy and reliable solution. Although the price is lower than a sale by intermediary, the merit of being able to sell the property at an early date for cash and with peace of mind in its current state is very attractive.
However, if you make a mistake in selecting a buyer, there is a possibility that you will not be able to obtain sufficient merit. Refer to the points introduced in this article to identify a reliable vendor with an extensive track record. It is important to compare the assessments of multiple companies and check for transparency, and entrust your valuable assets in a satisfactory manner.
If you have any doubts about how to handle inherited real estate, please consider consulting a specialist. If you meet the right partner, you will be able to smoothly resolve troublesome real estate issues and take the next step forward. We hope that the contents explained in this article will help you to think about the effective use and disposal of inherited real estate.