Real estate is one of life's biggest purchases for many people. Its value is not determined solely by physical factors such as location, age, and specifications of the property. In fact, to maximize the true value of real estate, the human element of "who you get involved with" is extremely important.
In this article, INA & Associates, Inc. explains the importance of "people" in determining the value of real estate and how to identify trustworthy partners with our expertise. This presentation will provide useful information for those who are considering real estate investment or home purchase, as well as for those who have doubts about their current relationship with their real estate agent.
Three Factors that Form Real Estate Values
Real estate values are professionally formed by comprehensively considering the following three factors based on the Real Estate Appraisal Standards. Understanding these factors is the first step in determining the value of real estate.
| Factors | Outline | Specific Examples |
|---|---|---|
| General Factors | Macro factors that affect the overall real estate market, such as national economic and social trends. | Interest rate trends, economic climate, demographics, taxation system, changes in laws such as the City Planning Law, etc. |
| Regional Factors | Characteristics of the area to which the subject property belongs. Even within the same city, values vary greatly from region to region. | Distance from train stations, availability of commercial facilities, availability of public facilities such as parks and schools, public safety, and future development plans. |
| Individual Factors | Unique characteristics of the subject property itself. | Shape of the land, area, sunlight, road access, building structure, design, state of management, performance of facilities, etc. |
These factors are objective indicators, but how to interpret the information and link it to value depends greatly on the expertise and experience of the real estate agents involved. In particular, the ability to make proposals that draw out the future development potential of the area and the potential appeal of the property is an area where the ability of the person in charge makes a big difference.
Why "who you engage" influences the value of real estate
Real estate transactions are a market with a large asymmetry of information. In other words, there is a large disparity in the amount of information and expertise between the seller and the buyer, or the lender and the borrower. It is the role of a trusted real estate partner to bridge this gap and ensure a fair and satisfying transaction.
In the real estate industry, there is a saying that "relationships are the assets of real estate investment. This means that not only the value of the property itself, but also the relationships with the people involved in the property will greatly affect the final investment outcome. In fact, many successful real estate investors have established long-term relationships of trust with excellent real estate companies and personnel.
The Reality of Information Disparity in the Real Estate Market
In the real estate market, there is a large gap between the information available to the average consumer and the information held by industry professionals. For example, property information available on the Internet is actually only a small portion of the overall market. It is not uncommon for many of the best properties to be traded through networks within the industry before they are released to the public.
Also, in assessing the price of a property, there are many factors that cannot be seen through simple market data alone. Neighborhood development plans, changes in local demographics, planned improvements to transportation infrastructure, and other such factors require extensive experience and expertise to comprehensively analyze this information and predict future value fluctuations.
The Value of a Trusted Partner
A good partner does more than simply introduce properties. We deeply understand each client's life plan and asset situation, and present the best options as experts. Specifically, we provide the following value
In the provision of non-public information, we have a network that can quickly provide information on quality private properties before they hit the market, as well as information that is under the radar. This enables us to consider properties in good condition with little competition.
In terms of accurate price assessment and negotiation skills, we calculate appropriate prices based on our extensive data and experience, and negotiate to maximize your profit. We do not merely quote the market price, but also strategically set the price based on the characteristics of the property and market trends.
In pointing out potential risks, we provide advice from a long-term perspective by honestly communicating not only the benefits of the property but also possible future risks (e.g., problems with the management association or changes in the surrounding environment).
To assist with complex procedures, we provide expert and smooth support in selecting a mortgage, preparing complicated contract documents and legal procedures.
Losses Caused by Failure to Select the Right Partner
On the other hand, a wrong choice of partner can lead not only to financial loss but also to mental stress. If you are involved with a person who prioritizes short-term profit and sales performance, you may end up purchasing a property at a price higher than the market price, overlooking serious defects in the property, signing a contract under unfavorable conditions, or missing the timing of the sale, resulting in a decline in property value.
In a real estate transaction, once a contract is signed, there is no easy way to go back. That is why choosing the right partner at the beginning is more important than anything else.
Seven points to identify a reliable real estate partner
So how do you find a reliable partner? Below are seven specific checkpoints to identify a real estate company and its staff.
| Checkpoints | What to check |
|---|---|
| 1. Careful interview | Does the company make an effort to understand the customer's background by conducting in-depth interviews not only about the property requirements, but also about the family structure, life plan, and financial plan? |
| Prompt and sincere response | Does the company respond quickly to inquiries? Do they explain in detail, avoiding jargon and using easy-to-understand language? |
| 3. Presentation of both advantages and disadvantages | Does the company explain not only the positive aspects of the property, but also the concerns and risks without concealment? |
| Abundant expertise and track record | Is the real estate agent familiar with the market trends, laws and regulations, and taxation system of the area he/she is in charge of? Does the company have a wealth of past transaction experience? Does the company possess qualifications such as certified real estate agents? |
| 5. Corporate Philosophy and Compliance | Is the company's management philosophy clear and does it have a thoroughly customer-oriented approach? Is the company highly conscious of compliance with laws and regulations? (Are there any bait advertisements, etc.?) |
| 6. Proposals from a long-term perspective | Does the company give advice from a long-term perspective, looking at life after the purchase or sale, rather than rushing to sign a contract in the immediate future? |
| 7. Building a good human relationship | In the end, do you sincerely feel that "I want to buy from this person" or "I want to entrust the deal to this person"? Compatibility with the person in charge is also an important factor. |
With these points in mind, we recommend that you contact multiple real estate companies and compare them carefully. In particular, during the initial meeting, carefully observe how well the person in charge listens to you and asks the right questions.
Learning from Success Stories: The Value Created by Relationships
Here are some real-life examples of how good partnerships have maximized the value of a property. These examples illustrate how important "who you engage with" is.
Case 1: Increasing the value of a 15-year-old used condominium
Mr. K (30s, works for a pharmaceutical company), a Tokyo resident, purchased a 15-year-old used studio apartment. Our staff not only introduced the property, but also interviewed Ms. K in detail about her future career plans and family plans. As a result, we proposed the choice of location with a view to future relocation, and even the possibility of increasing the value of the property through renovation. Three years after the purchase, Mr. K succeeded in selling the property for more than the purchase price.
Case 2: Diversified investment as an inheritance measure
Mr. T, who runs an automobile-related company, was considering investing the funds obtained from the partial transfer of his business. Our staff deeply understood Mr. T's business background and his needs for inheritance measures, and proposed diversified investments in financial products and real estate. We constructed a comprehensive portfolio that considered not only profitability but also inheritance tax measures and business succession, and contributed greatly to Mr. T's asset building.
What these cases have in common is that the person in charge understood not only the client's superficial needs but also the true issues and future goals at a deeper level, and made proposals based on this understanding.
INA&Associates' management philosophy of focusing on "human resources" in practice
At INA&Associates, we place "human capital" and "trust" at the core of our management. This is not just a slogan, but a management philosophy that we practice in our daily business.
We use the term "human assets" instead of "human resources. This reflects our belief that all people involved are valuable assets and that we pursue their growth and enrichment. We aim to make not only our customers but also our employees, partner companies, and local communities all happy.
We also emphasize the pursuit of sustainable growth based on a clear vision, rather than the pursuit of short-term profit. This allows us to build long-term relationships of trust with our clients and create value in the truest sense of the word.
In summary: The best real estate transactions come from the best partnerships.
This article has explained how the value of real estate depends not only on physical factors, but also largely on the human factor of "who you are involved with. The main points are summarized below.
The value of real estate is judged comprehensively based on three factors: "general factors," "regional factors," and "individual factors," but how to utilize this information depends on the ability of the person in charge. In the real estate market, where information asymmetry is great, it is essential to have a reliable partner. A good partner will maximize the client's benefit by making full use of their expertise and network.
When selecting a partner, it is important to identify seven key factors, including the quality of the hearing, the sincerity of the response, and the expertise of the partner. As our success stories show, choosing a partner who understands not only your superficial needs, but also your deeper issues and future goals, is the key to unlocking the true value of your real estate.
We at INA & Associates, Inc. are committed to sincerely dealing with each and every one of our clients, with "human resources" and "trust" at the core of our management. Real estate is not just a "thing," but an important asset that serves as the stage for our clients' lives. We look forward to working with you as your partner to maximize its value.
Frequently Asked Questions (FAQ)
- Q1. Is there a fee for just a consultation?
- A1. No, consultation is free. Please feel free to inquire about any matter, including purchase, sale, leasing, and management of real estate. We will make the best proposal after hearing about your situation in detail.
- Q2. If I don't agree with my contact person, is it possible to change?
- A2. Yes, it is possible. Compatibility with the person in charge is very important, so please do not hesitate to ask. We have many experienced staff members, and another person will take responsibility for you.
- Q3. Can I consult with you even if the property is located in a rural area?
- A3. Yes, we can handle properties throughout Japan. We have offices in Osaka and Tokyo, but we can support real estate transactions throughout Japan by utilizing our unique network. Please feel free to consult with us first.
- Q4. Do you deal with both investment properties and residential properties?
- A4: Yes, we support both. For investment properties, we make proposals that emphasize profitability and future potential, and for residential properties, we make proposals that emphasize comfort and convenience of living. We offer the best advice according to the customer's objectives.
- Q5: Can you consult on asset management other than real estate?
- A5. Yes, you can. We are also developing a consulting business and can provide comprehensive asset management advice, including real estate. We will propose the best portfolio for you based on your asset situation and goals.
Daisuke Inazawa
Representative Director of INA&Associates Inc. Based in Osaka, Tokyo, and Kanagawa, he is engaged in real estate sales, leasing, and management. He provides services based on his extensive experience in the real estate industry. Based on the philosophy that “human resources are a company's most important asset,” he places great importance on human resource development. He continues to take on the challenge of creating sustainable corporate value.
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