00:00:05: And we will all watch them, allow us to come because of that.

00:00:08: Today's presentation is on deal dynamics so let me hand over it to Ziu.

00:00:15: Thank you Ziu.

00:00:17: OK, so just quickly to the people who don't know me and have seen me running around.

00:00:22: Don't what I've done with a clicker?

00:00:23: Don't worry about it!

00:00:24: So... Who am

00:00:26: i?!

00:00:26: I'm co-founder & COO of two companies.

00:00:30: One has been going on for about fifteen years Co.

00:00:33: founded by my lovely partner in back there Chika Kossan.

00:00:36: Just stand up you dont need come here.

00:00:40: Who is the one that actually does?

00:00:42: The work I just do.

00:00:43: they're talking.

00:00:44: and then the other One has been founded four years ago with a different business partner And not much to do with real estate.

00:00:50: That one Is helping people invest in other things in Japan.

00:00:53: so People who want to set up a business here buy a business Here um, and also relocate To japan's of people who are from overseas and either via the business or Other means need help put the logistics Of relocating to Japan.

00:01:07: Both companies also manage properties, so NTI manages investment properties and Nippon Bridge the other company managers holiday or hybrid homes.

00:01:16: Holiday homes that are being rented out for short term stay in various capacities.

00:01:21: So don't be shy to reach out to us.

00:01:25: I also do The Japan Real Estate Podcast since twenty seventeen.

00:01:29: As far as i'm worried it's still the only strictly audio source of information Related to Japan's real estate market in English.

00:01:37: so anywhere you search online.

00:01:39: You should be able to find the Japan Real Estate podcast.

00:01:43: and I also do private consulting and proxy representation.

00:01:47: So as part of the work that I do some people prefer to work directly with an agent.

00:01:52: To have NTI, Do everything on your behalf is not that cheap.

00:01:55: It's a few thousand dollars usually depending on the price of the properties if it's based on the percentage of the price.

00:02:01: Some people prefer just work with agents or lawyers, and all the third parties involved on their own directly.

00:02:08: But they do want somebody consulting them helping them prioritize one property over another guide you diligence raise red flags review documents before they sign them or signed documents from there we have.

00:02:20: so for those people I also do private consulting based on an hourly retainer which is a lot cheaper.

00:02:27: And with Bob who is sitting there in the audience, so there you are.

00:02:31: We've recently created The Japan Real Estate Insight Studio which we have been demonstrating out on the whole next to Charles's system Which was also very interesting and that particular system.

00:02:42: if he uses a QR code There You'll Have A bit of discount.

00:02:47: So just go In there and check it Out for free.

00:02:49: Basically what It does Is You Grab a Japanese listing that is currently only tenanted listings, or listings that are called owner change in Japan.

00:02:59: And the system will analyze it too.

00:03:01: The next session we'll have after three o'clock break.

00:03:04: actually do demos of the system live so you see what exactly gives.

00:03:07: but its a very interesting system which drills down into individual listings and helps figure out if really want to be investing on this particular property or not.

00:03:18: Okay I'm also a bunch other things.

00:03:20: If any interest Feel free to reach out after the presentation and we'll have a chat about that.

00:03:27: Okay, so... We regularly talk to people who've worked with Japanese real estate agents And haven't had this super good experience for one reason or another.

00:03:39: We often get approached by Japanese real-estate agents Who want work with foreigners but haven't much experience.

00:03:47: A lot of them don't wanna work with foreigners again.

00:03:52: The purpose of this presentation today, and with... This is a topic that we've covered in a bunch of presentations.

00:03:58: In past sessions as well but in this particular one I want to focus not only on the weird foreigner side But also to help some Japanese real estate agents.

00:04:08: We got quite few of you who have worked with foreigners before To figure out how they can do it With at least amount of damage and collateral along the way because That does unfortunately happen a lot and we'll talk about exactly why that happens.

00:04:23: So two sides to every Japan real estate deal, obviously there's the foreigner.

00:04:29: in most cases if they're not residing in Japan They will be buying cash.

00:04:32: so she is holding this weather cash on her hand.

00:04:34: but as We've heard today and yesterday There are quite few options for mortgages even though it's investment properties And Japanese Real Estate agent.

00:04:45: The guy here is a guy, but I've actually some of the most amazing agents that we work with are women specifically young women.

00:04:53: So were very happy to see.

00:04:54: that's a blooming industry for women.

00:04:57: get into in Japan and hopefully there'll be more and more like it.

00:05:00: just chose male or female completely randomly.

00:05:03: so don't take this as anything okay?

00:05:06: Where do both these sides run into friction?

00:05:12: That can happen at any stage.

00:05:14: Normally, there's the property research.

00:05:16: This is how every real estate deal normally advances anywhere in the world.

00:05:20: Japan has no different.

00:05:21: we've got property research We get the offer stage with that the due diligence stage.

00:05:27: in japan those two are actually In this order whereas another countries you'd be doing your due diligence first and then submitting an offer which could potentially Be legally binding.

00:05:37: here it's the other way around.

00:05:38: will get to them a minute The signing and payment of the deposit, then settlement and handover for personal use or management in case of investment property.

00:05:51: Or a remotely managed holiday home that you're not residing at your country – somebody needs to manage it!

00:05:59: The reason each stage often runs into friction is The obvious stuff like culture and language, right?

00:06:08: So we've discussed this again in many sessions in the past.

00:06:11: But there are terms that are not familiar to either side.

00:06:15: We recently had a client ask their agent if... so you're going to organize the lawyer,

00:06:22: right?".

00:06:23: And they'd be like,"Lawyer

00:06:24: what?!

00:06:24: No lawyer!

00:06:25: We don't have any lawyers involved in real estate

00:06:26: deals.".

00:06:27: So we had to explain it with an agent that they were referring ownership transfer here in Japan.

00:06:37: They are technically lawyers, but nobody here refers to them and that...in the context of a real estate deal.

00:06:42: so they're all kind of little quirks related just professional terms.

00:06:48: Another major cause-of friction is timing Foreigners specifically who are purchasing in Japan for their first time Are not really used how things work.

00:07:01: They're used to working with Western or other countries, realtors who are extremely hungry and extremely quick on their feet.

00:07:09: You know somebody submits an offer a meal often explains how the agent jumps in back of car makes call yes your offers been accepted.

00:07:16: we were signing it.

00:07:17: couple weeks doesn't happen like that here.

00:07:19: timing is very different.

00:07:21: will discuss this detail in minute market conventions, so what things take place at which stage of the process.

00:07:28: What is considered acceptable?

00:07:30: What's considered not acceptable?

00:07:34: And all these are basically based on differing assumptions and expectations that both sides have of each other.

00:07:42: So this isn't just a clueless foreigner thing.

00:07:46: unfortunately it often a cluellest Japanese agent.

00:07:50: People who want to work with foreign buyer agents won't walk with foreign buyers and have never done this before Are expecting a lot of things off the buyer that they?

00:07:59: Probably should not be expecting as well.

00:08:02: So, this is definitely A two-way street And we'll try.

00:08:05: I'll try too.

00:08:06: i've tried to break down Most of the slides into that those two sides.

00:08:10: so how can you avoid these on both side?

00:08:13: so baseline assumptions That will go with us every step of the way The buyer again as mentioned is expecting very quick action and reaction from their agent.

00:08:27: the realistic market.

00:08:28: Is a fast-moving Market, it's a very lucrative market for a lot of agents.

00:08:34: in some cases if you're dealing with a super cheap Akia It hasn't been the case until a couple years ago now it is Kind of kind of lucrative for them not nearly as much other countries.

00:08:44: And also the price tag in Japan is also an often many cases a lot lower than it is in other countries, depending on what you're buying and where.

00:08:51: So maybe not as lucrative... In any case the Japanese agents at least don't place emphasis on being quick.

00:09:00: What they do place emphasis is how well-structured everything's happening How much you need to respect each and every procedure along the way.

00:09:10: The paperwork needs to be done.

00:09:13: completely different set of baseline assumptions there.

00:09:18: The buyers often expect to handle the Q&A and due diligence on-the-move.

00:09:24: So we look at property, if I got a few questions... ...I'll ask them here or there in their.

00:09:29: If they're something that don't know which will be divulged me into your course every step of way not always it happens here.

00:09:37: The agents expect you understand what the standard operating procedure is.

00:09:42: And this where a lot of agents who work with foreign buyers for their first time go wrong, they expect the buyer to know stuff that the buyers often don't.

00:09:52: So... The agent is expecting.

00:09:54: you will ask questions at which stage or process and it's very rare if these are your first buying in Japan.

00:10:04: Another thing when I started working real estate in Japan A friend does that in Australia said The best way to make a profit on the deal is right before signing, just as you're about to sign and pay deposit.

00:10:16: Is it time to stick in one more quick negotiation?

00:10:19: Reduce the price by another ten percent.

00:10:22: You do this here...the deal will most likely fall through.

00:10:24: It doesn't happen because what the Japanese side expects if you've progressed to next stage of the deal you have accepted everything that has been discussed until this point.

00:10:35: The time for negotiation, and we'll talk about what kind of negotiations can be done in a minute is far earlier than the deal.

00:10:41: You cannot just keep changing your goalposts or ask to add things from the contract.

00:10:48: if you have moved on to the next stage.

00:10:51: it's assumed that everything came up at this point.

00:10:57: Something that the there's not something at the buyer should be doing but on the other hand It's not.

00:11:02: Something, that they agent to expect the buyer Not-to-be Doing.

00:11:05: so if you haven't worked with a foreigner before and your are real estate agent it's important To understand that things happen differently overseas.

00:11:13: They're not doing this because their rude or disrespectful of trying to offend You?

00:11:18: They're doing This Because this is how it's done in Their country Of origin Or In Other Countries That They've Been Purchasing in The Past.

00:11:26: And finally, there's a misunderstanding on the buyer side.

00:11:29: What exactly is the agent role in this entire process?

00:11:34: They're used to very different behavior and very different responsibilities that agents provide overseas.

00:11:41: similarly The agent as well.

00:11:43: it not always clear how these things work overseas.

00:11:50: Along this process, they're not going to do anything else.

00:11:52: The buyer expects them to other things and vice versa.

00:11:55: And this is when things start to go wrong.

00:11:58: so Breaking it down by deal phases.

00:12:02: So if we were in the research phase meaning?

00:12:05: the buyer Wants to start looking at what listings are available in the market.

00:12:11: We often Deal with buyers who come up to us.

00:12:15: I'm looking for a holiday home or an investment property.

00:12:18: It could be a condo, it could be in Akiah, it would be in Okinawa and it can be in Sapporo...I am not exactly sure what the budget is but if that right deal comes along then i will open to you on the other side of this equation.

00:12:32: we've got Unicorn Hunters who are like hey!

00:12:36: I saw Schumatsu post on YouTube saying that you can buy twenty thousand Akia in Yokohama Renovated for fifteen thousand and rented out four ten percent yield.

00:12:47: Let's go get those deals, right?

00:12:50: In both cases the agent hasn't got a clue on what to do with that.

00:12:55: Right they can search entire country for you.

00:12:58: They don't even know where to start.

00:13:00: they can serve every level of every budget.

00:13:03: The research that will do for properties That are meant for investment versus for holiday home verses from your family home are completely different.

00:13:11: And what happens in both of these cases is usually because the Japanese that then you're not going to tell me.

00:13:18: I have no idea how it will help, as we can see very clearly for this image.

00:13:21: but they'll go silent right?

00:13:24: So crickets nor apply from agent or two three four five weeks if were involved with consulting at that stage would reach out and say just don't know what do.

00:13:35: so i haven't contacted a buyer.

00:13:37: cause The buyer on the other side is assuming that agent isn't really interested in their deal anymore, or they're just not responsive.

00:13:45: Or they don't behave as agents are supposed to behave and thats when the RIP starts to happen.

00:13:51: So To amend this On the buyers' side Have a clear set of criteria.

00:13:58: It's okay to be looking for both an investment And holiday home But focus one at time Right?

00:14:05: If you've got budget from two of them At least spend a week or two, three researching one of them before you move on to the other.

00:14:13: If you know particular location that your interested in even through locations thats okay.

00:14:18: but anywhere and country is not gonna help anyone.

00:14:20: they don't.

00:14:20: how find out for you?

00:14:22: try to focus once set up criteria at time.

00:14:25: it's absolutely fine if I moved onto next one but...if you're not finding what looking forward with your initial research criteria Start thinking in advance on how you're going to amend that.

00:14:38: So can you expand your budget?

00:14:40: Can you consider another location, can you go for a smaller floor plan... ...can you go potentially longer distance walking through the station...?

00:14:49: Can you go from two parking spots and one parking spot?

00:14:52: Try to map out what is next step of research if you don't find what you are looking at with an initial set.

00:15:00: And then rinse-repeat edit-expand expand the budget a little bit, we haven't found it.

00:15:05: Okay let's go down from sixty meters to fifty-five square meters and so forth on the real end.

00:15:11: yeah stop chasing unicorns.

00:15:13: they... It is not that don't exist.

00:15:15: but if you want look for diamond in rough kind of property.

00:15:21: Don't expect agent constantly be searching spending hours trying find it.

00:15:28: They get paid on settlement.

00:15:29: It's very likely that settlement is not gonna happen if you're chasing a unicorn and there's the limit to what they'll do out.

00:15:35: so If you want to look for a unicorn, which is absolutely fine Do the research on your own.

00:15:39: don't expect your agent to constantly search for that unicorn for you.

00:15:44: Now at the agents side And this is something That we really need to mention two agents that we work with again and again and let Your buyer know if what they're asking for is not reasonable.

00:15:59: Like going silent because it's not polite to say no, isn't gonna get you anywhere with a foreign agent or with the foreign buyer unfortunately and It Is Not Rude To Say That What You're Looking For Is Not Reasonable.

00:16:13: in fact If Your Clarity Means Kindness And Being Unclear As Being Unkind so...If There Is Something That Your Buyer Is Asking For that They Just Not Gonna Get.

00:16:23: based on your experience in the market and you are the experienced one, let them know.

00:16:28: And even better of the agents that are sitting here in this room and other agents I've worked with who have come to visit for last couple days aside from Emile ,I can point only to Gen Mamia san who is sitting over there.

00:16:47: he's the only agent bilingual foreigner friendly agent.

00:16:50: i know that each and every time I refer a new client to him, he's like hey let's jump on the call so we can better understand what you're actually looking for.

00:16:59: So i could explain more about what is feasible or not feasible.

00:17:04: Not say anything bad with agents who work aside from me.

00:17:07: they are all fantastic.

00:17:08: They do this via e-mail and chats And receive criteria and research.

00:17:14: But here it has a potential buyer To clarify what it is that the buyer was looking for and to let them know if that's reasonable or not.

00:17:23: And he then contacts me again.

00:17:24: He says hey, so I spoke to them They're looking for.

00:17:26: this site told him that can't be done But we'll try to find it.

00:17:29: This is kind of common practice overseas Not so much here.

00:17:33: So exchanging emails is great but a face-to-face call with a potential customer Is the best way.

00:17:38: really understand What they are looking For?

00:17:42: Then We get through The offer stage.

00:17:45: So the buyers again coming from a overseas negotiation mentality.

00:17:51: this property is advertised for X. Let's try offer fifty percent and see if they'll take it because It's been on the market for a year in a bit, then They might take it And if not will go up to forty percent and thirty percent We'll get close to be asking price but as low as possible.

00:18:07: Is obviously the best cuz.

00:18:08: I want to save money In Japan.

00:18:11: we've mentioned this again and again in past sessions as well.

00:18:14: Even if you're offering ten or fifteen percent off the asking price, which is normally aside from super luxurious Tokyo resort properties where sometimes they are slightly inflated.

00:18:25: Or maybe largely inflated and Normally tend to fifteen percent of it's the most that Reasonable and polite to offer.

00:18:34: offers beyond that usually are not taking very seriously in Japan To the point where the listing agent will just stop returning The calls of your buyer's agent or yourself if you're doing it directly.

00:18:45: And even if you are offering ten to fifteen percent off.

00:18:47: You need to back it With something.

00:18:50: so I've noticed the distance to the station is a bit longer than other properties That are, you know being advertised with the same price?

00:18:57: I've notice this building is a little bit older.

00:18:59: I've noticed that I'll need to put some money into the roof because it's leaking here and there.

00:19:04: And therefore, I'm asking for a discount in most cases.

00:19:06: The property is being advertised at...the price has been listed.

00:19:11: with all of that in mind but if you do have a reason why you really want to offer little bit off explain why.

00:19:20: Offers are not legally binding in Japan?

00:19:22: A lot of buyers we work with figure this out pretty quickly even though other countries they're legally binding.

00:19:29: That leads them to think that it's okay to submit five or six, seven different offers.

00:19:35: See which one hits and then just forget about the rest of them because its not legally binding.

00:19:39: so who cares?

00:19:41: The agents here though know that backing off from offer without any condition or explanation given in advance means again that listing agent will now want work with them order buyer again And if they do this too many times.

00:19:58: You know, there's not an official blacklist but people hate that agent.

00:20:02: He represents those annoying tire kicking guy jeans.

00:20:05: just don't return their calls anymore because they're buyers are not serious.

00:20:09: we offer.

00:20:11: We make it offer Assuming that we're going to be progressing.

00:20:14: if due diligence check out due diligence comes a little bit later.

00:20:17: normally The buyer is assuming That once the offers accepted.

00:20:24: That's when we'll start digging into the details of property, doing the property diligence.

00:20:29: Figuring out if you want to get it or not.

00:20:32: and while agents know that any kind condition needs to be stated on offer specifically in advance.

00:20:40: so The most common case actually in this cases structure inspections, right?

00:20:48: So you can't submit an offer the offers accepted and then you think okay.

00:20:52: so now I'm gonna order and commission a structural inspection That should have been noted on the offer in advance.

00:20:57: some sellers will even refuse that but whether they do or don't if it's reliant on the Buildings due diligence information for example how much she got collected reserve funds.

00:21:08: What's their innovation history in past ten years?

00:21:11: Are there any funds owed as a loan?

00:21:16: There's lot of stuff that you want to find out about the property, some might not be available on the listing or in advance.

00:21:25: If it is reliant upon an offer then condition needs to be noted and we had big presentation at last summit.

00:21:33: but inspections here are exception.

00:21:37: In Japan, most Japanese buyers do not ask for structural inspection even if they're buying an older house.

00:21:43: It's becoming a little bit more common in recent years but it is still the exception rather than the norm.

00:21:50: so the inspection again needs to be noted.

00:21:54: What will happen when you insist on those top four things as buyer?

00:22:01: is that your agent, if it's their first time working with you... ...is going to be entering meltdown mode.

00:22:07: They should have told in advance how things work here.

00:22:11: most of them again are unclear not because they think they're being unkind but they don't want the confrontation inside there fuming and we've had a few agents blow out at certain stages along the way The mistakes that the agents make.

00:22:29: they should have told you in advance how this works.

00:22:32: So if your agent is Japan and starting to work with a realtor or foreign buyer for the very first time, do educate them on things that work here because it's perfectly normal for them to assume these things are working at the same way as overseas.

00:22:49: It isn't out of malice but not their fault.

00:22:52: They just haven't been educated.

00:22:53: so... unfortunately, is an agent and that's going back to the topic of agents role.

00:22:59: It's your job to let them know how things work here... ...to help them avoid creating this rift between

00:23:06: you.".

00:23:08: Okay so how do we offer?

00:23:10: We again prioritize and submit one at a time if we have particular property that want be purchasing As a top priority.

00:23:19: we're not going to be submitting three offers for this one and my second best, third best in the backup.

00:23:24: We'll submit one offer that I'm most interested.

00:23:28: if it turns out fantastic will progress or not?

00:23:32: Thank you!

00:23:38: We do the Q&A before we submit the offer.

00:23:40: Some of the information might not be available in advance, and if that's the case The listing agent or your buyer's agent will tell you that.

00:23:47: but ask as many questions As you can in advance.

00:23:50: especially those questions are not related to anything That the listing site needs to provide for example?

00:23:57: we've had clients apply For a property Submit the offer no special conditions on it And then they suddenly find out that it's actually too close to the local highway interstate exchange interchange, right?

00:24:14: So oh Actually I didn't think about that but that's too noisy.

00:24:17: or Oh there's this chemical plant a couple of kilometers away.

00:24:21: That's probably gonna stink.

00:24:23: so Those are the questions to ask in advance not after you've submitted the offer and That's information that you should be researching on your own.

00:24:34: So look at Google Maps, Look At The Age Of The House ,look at the size of layout submitting an offer and then suddenly remembering it is actually too small in the yard just to smoke for a dog.

00:24:43: not cool!

00:24:44: It´s all about checking out before you submit an offer If You Do Have Conditions Related To Information That Needs To Be Devolved After The Offer.

00:24:56: Note These Conditions On The Offers And Low Balling Again Is Not A Thing Here.

00:25:02: And on the agent side, you need to explain to your buyers again that these offers are not legally binding.

00:25:09: but they are... how do I put it?

00:25:12: They are reputational binding.

00:25:16: The offer is not legally-binding in a sense where no one's going to sue and you don't have to pay any kind of deposit.

00:25:24: if you then pull the offer back but you're burning your relationship with that seller.

00:25:30: You are burning the buyer-side agent's relationship to the seller side agent and honestly, they contribute through a bad stigma foreign buyers often have in Japan which is unfair for us mainly due to ignorance.

00:25:45: so agents' job is explain again how things are different here.

00:25:52: don't be shy.

00:25:53: ask your buyer if they have any conditions that they would like to put on the offer, because you want to avoid a situation where there's suddenly waking up post-offer with oh actually but structural inspection or Oh Actually But we haven't even checked.

00:26:07: Be proactive about it which is tough for Japanese agents in many cases.

00:26:13: Just ask them If they don't put any conditions on the offer of their own accord or if it's not working with consultants like ourselves, ask them are there any condition that you'd want to add?

00:26:22: Do we need a structural inspection.

00:26:25: Is anything in the building investigation report that might cause you pull back the offer?

00:26:30: tell me so I can write this form in advance.

00:26:36: Structural inspections and those due diligence reports in condo-building cases is specific items for your buyer.

00:26:46: And without getting upset, explain to them that Japan is not a high-negotiation culture.

00:26:52: They just don't know that.

00:26:54: if the foreigner's buying here for the first time they often do Not Know That This Is Not An Environment Where You Can Come In With Half Price Of The Listing Price.

00:27:03: Lobel Offers in Most Cases.

00:27:05: Again Some Cases Are Different.

00:27:07: Just Explain That To Them Educate Them.

00:27:10: Okay Contracts.

00:27:13: The buyers often assume that everything will be done in English, not the case.

00:27:21: In Japan right?

00:27:22: If your agent is the bilingual experienced foreigner friendly agent type then they would hopefully provide you with at least summaries.

00:27:31: we prefer detailed translations.

00:27:34: it's okay for you to translate documents yourself via chat GPT and for the agent to double check the translation confirm its correct.

00:27:43: But no, these documents will not be done in English.

00:27:46: The agents know this but they often neglect to tell their buyers that this is going to the case.

00:27:52: so the buyer's reach contract signing day... oh sorry!

00:27:55: ...the week or two before contract signing.

00:27:57: when they receive the document drafts everything isn't Japanese and they just have no idea.

00:28:02: what agents I think don't know in Japan is that buyers are legally not allowed sign documents.

00:28:12: So, the fact that you've given them documents in Japanese and you expect to somehow figure out what these documents contain.

00:28:19: The legal onus is going to be on U as an agent if they haven't made sure they understand every single word of this document.

00:28:26: so it's your legal responsibility for making sure a buyer knows their signings.

00:28:33: Again we mentioned before the buyers are assuming I have received draft of the contract and the important matters documentation, all of the appendixes.

00:28:42: And when it will come to signing day I'll ask you actually amend this in that.

00:28:48: Again progression means acceptance but your buyer often doesn't know because its not always done that way overseas.

00:28:56: The agent knows that the drafts are really the final version.

00:29:00: they're just there for the buyer to read and confirm if their errors will amend them, but otherwise there will be no further changes through documents.

00:29:08: Again let the buyer know that this is how things work here because they often don't know about it.

00:29:16: On the topic of deposit The buyers are assuming that they're going sign a contract And then start transferring the deposit at ten percent or whatever it is in Japan.

00:29:27: International remittances take few days.

00:29:31: So they're assuming that I'll sign, then go home.

00:29:33: I figure if you do...I'm doing wise and direct bank transfer.

00:29:37: how exactly am going to be transferring the funds into Japan?

00:29:40: If i got a Japanese account than ill talk with my bank and tell them why are these amount?

00:29:45: this is not.

00:29:45: it works here.

00:29:46: so again your agent knows The deposit should arrive immediately once the contract is signed.

00:29:51: In fact, in many cases they'll be sitting face-to-face with a laptop and as soon as signature was done then the buyer will transfer money to display their remittance receipt.

00:30:02: but again your buyer might not know that.

00:30:04: so let them know.

00:30:05: this becomes even more serious when we're talking about actual settlement amount.

00:30:10: But for the contract or the deposit those funds need to arrive in the same day.

00:30:15: The fact that they haven't been remitted on the same date can blow up a deal and it could even cost you money, if you transferred a week later because I took your time to figure out international remittance You would be losing the deal and legally obliged to pay the deposit anyway Because we've already signed contract.

00:30:35: so know this in advance.

00:30:39: If you're assuming that you already know all there is to know about the property and haven't asked any questions, You could be mistaken because your agent... ...is assuming if he didn't ask then don't care.

00:30:52: In many cases agents we work with are by-the-book super professional.

00:31:05: They are very due-diligent in the sense that they make sure that a deal goes through legally and smoothly, an ownership will be transferred correctly.

00:31:12: But they're not your strategists... ...and they were NOT going to tell you what questions we should ask them.

00:31:19: They assume anything you want to know about property is going directly to them.

00:31:23: You're supposed to be the proactive one but not your agent!

00:31:27: not the best way to work as an agent in my personal opinion, but unfortunately that's how they are.

00:31:33: So if any of this doesn't happen things get a lot worse and there is a lot of blaming and shouting going on again because one side is assuming A while another side assumes B. when you actually get down to signing reviewing paying deposits They suddenly discover which was very late into process now.

00:31:52: The other side was completely unaware about what will be progressing here And that's when things start to get a little bit ugly.

00:32:01: So the way to amend it is for you as the buyer, request and make sure Full English document drafts.

00:32:10: Yes, you need to sign the original documents in Japanese but You should be receiving a verbatim translation of every word In those documents To review before you sign them The agent.

00:32:21: if you've done that translation yourself via AI or whatever other tool with A japanese friend?

00:32:26: The agent needs to review the Translation versus the original japanese Document and make sure That you know exactly what your signing.

00:32:34: You need to know Exactly how much are going to Be transferring in deposit amount on the day of signing the contract and make sure that the deposit is ready for immediate payment as soon you've signed it.

00:32:46: An immediate payment doesn't mean you remitted right now, and its going to get here five or six business days.

00:32:52: Immediate payments means this will land into agents' account immediately once a contract has been signed.

00:32:59: at least thats how it's legally supposed work And anything we want ask about.

00:33:05: Just ask, don't expect the things will be explained to you if you haven't asked them because they normally won't be.

00:33:11: Ideally If agent is doing thing right They'll provide with that full English translation and tell exactly how much need remit And prepare for immediately getting funds into their account.

00:33:29: Make sure understand what your signing The way document explanation meeting works.

00:33:34: They read them sentence by sentence.

00:33:37: You say, hi you nod your head and make sure that they want to see you confirming but their not really going.

00:33:45: ask normally if understand what it is just been explained.

00:33:49: so Just makes sure the buyer actually understands what its explaining for them The best time.

00:33:55: do this way ahead of contract signing when reviewing document drafts together.

00:34:03: What is it that you need to guide your buyers in advance, and make sure they're aware of?

00:34:13: The list is endless.

00:34:15: But here are a few things agents might not know that buyers don't actually know.

00:34:20: if this the first time buying in Japan A lot of buyers are expecting asbestos and red-lead paint checks to be in existence or supplied together with the property that they're going to be purchasing.

00:34:33: In reality, ninety nine percent of cases there will not be such information available.

00:34:37: those cheques have never been done.

00:34:39: some buyers are very surprised by this.

00:34:41: when you see it on a document draft suddenly want back out because they were terrified.

00:34:48: They do not know that sellers in Japan don't have, in most cases unless it's a real estate company selling the property.

00:34:54: In vast majority of cases and definitely if they're properties are old, the seller doesn't have any post-settlement liability to anything wrong with their property.

00:35:02: Some again are shocked when you see this on document draft but thats' the norm.

00:35:06: They are not aware of the difference between septic tanks to properties that are on sewer lines, to properties they're on kumitori cesspool those stinky collection tanks under-the-house.

00:35:18: There's another where all these potential problems with well water as opposed to city water supply... ...they haven't got a clue.

00:35:25: so even if you do see kumitori and wellwater in contract there is no idea That could be problematic there for them.

00:35:33: And if you don't explain that to him and they end up moving into a property, suddenly smelling military latrine under the house... They're going to blame YOU for it because you didn't tell them what comes with the Kumitori system or how often it needs service than our stinky it is!

00:35:49: And they're not aware of everything that Tracy has been explaining here and hasn't explained for the past few years in these summits, how short-term rentals work.

00:35:57: A lot are assuming if you purchase a property it can immediately be put on Airbnb Properties out in the countryside.

00:36:05: There will be property managers out there who are able to serve them.

00:36:08: They're not aware that a long-term lease in Japan is automatically renewable every two years And if it's not, there has to be really good reason for it Not to be renewed.

00:36:16: they have no idea about how these things work.

00:36:18: If you do not explain into then Then other where all the nuances of terrace homes duplexes The ones that are very common in Kyoto and Osaka A lot of other cities adjoining walls How?

00:36:31: if you're renovating a property like that, You need to be aware of what are doing with the neighboring properties.

00:36:35: Sometimes there's actually a little bit of a kumiae Like an owner union involved in these terrorist homes.

00:36:40: They don't know how things work here.

00:36:42: they Don't know what non-rebuildable properties mean In practical sense required when rebuilding in a practical sense means.

00:36:50: they don't know the difference between...the legal difference between renovation, which is anything that's done to property with an intact foundation and a few supporting walls as opposed to complete rebuild.

00:37:03: What insurance covers or doesn't cover.

00:37:05: they're not aware of what maintenance expenses are like whether it's a condominium unit Or a standalone home.

00:37:12: They're not Aware Of?

00:37:14: What life is like in the Japanese countryside.

00:37:16: A lot of buyers will be buying a property out In the Naka and then come complaining to the agent that they've never told him That the bus only runs there twice a day, or that the neighbors hate foreigners.

00:37:26: right so Some agents who work these local areas are aware enough to float this items, but if you're like many of the agent that we worked with.

00:37:36: If your based in Tokyo or Osaka or Fukuoka one other big cities and You helping people buy properties out on the Inaka it might be a good idea To ask them is they visited location in past?

00:37:47: If ever lived in Japanese countryside Is there where accessibility infrastructure issues?

00:37:52: because A lot have dream about never actually live And they don't know how to deal with their Japanese neighbors.

00:37:59: They don't what's expected of them and What's completely unacceptable?

00:38:03: To a Japanese neighbor, and the list goes on and on.

00:38:06: so The point is your buyer doesn't know what questions to ask and if you Don't tell him that then they're not gonna know it.

00:38:12: settlement in handoff or go through very quickly.

00:38:14: I know at the end of my time buyers assuming we've talked about this yesterday That funds are going to escrow usually not the case in Japan.

00:38:21: The realtor is assuming that all funds will go directly to wherever they need to go, not the case with buyers.

00:38:27: Buyers sometimes cannot transfer funds directly through the seller and the seller hasn't got a clue about what his swift big code is in how to accept an international transfer.

00:38:36: their bank won't even allow them to accept it.

00:38:39: so the realtors are making some pretty bad assumptions this end as well.

00:38:43: They're assuming that they'll remit in advance, whereas the realtor is expecting it to arrive exactly by nine a.m on the day of settlement because otherwise there's always a chance that somebody will run off with money.

00:38:55: On other hand if it arrives even one-day later then they're already in breach.

00:39:00: all these expectations need to be aligned in advance.

00:39:04: They are expecting immediate confirmation and title deed in hand where as agent knows two, three four five weeks post-settlement is when the new registration documents and title deed will arrive.

00:39:17: Most of them don't even call or message the buyer to let him know that transaction went through smoothly.

00:39:23: they're just expecting everything completely understood whereas the buyers are sitting there panicking because it's their first time buying in a foreign land.

00:39:31: who knows if property now mine or not?

00:39:33: keep them posted!

00:39:34: If you're Japanese agent let them what happening with settlement And most importantly, they're expecting.

00:39:40: somehow the agent will set up their utilities get there insurance in place and also you know meet them at the entrance with a keys an explain to them how do use each every section of the property.

00:39:52: What this key does what is open?

00:39:54: This not the case Japan.

00:39:55: The agent assuming that buyers would figure all these out on their own which often not the cases when really end up hating each other.

00:40:04: so just Cover your basis, so you need to know in advance where you're remitting too.

00:40:12: You need ready the funds well-in-advanced again even more serious than with a case of contract signing and deposit.

00:40:18: Make sure that they are aware how long it will take them at their destination on time or day.

00:40:25: Confirm whether you'll receive or pick up keys And know how you're going to manage your property.

00:40:32: You can ask your agent, maybe they will do it for you but most of them won't and if not then hopefully refer you somebody else or they want.

00:40:38: But expecting everything is set up when you enter the property first time.

00:40:43: If haven't discussed in advance It's probably not gonna happen Agents!

00:40:49: You need be ready to receive all funds from your buyers.

00:40:54: I've run into at least three cases now where A Japanese agent who thinks that they're ready to be working with foreigners suddenly realizes their bank doesn't actually allow them to receive funds from overseas.

00:41:05: So, they are asking the buyer if he could remit the funds directly for the seller and make sure that the buyers' funds arrive exactly by nine

00:41:13: a.m.,

00:41:13: next day... ...and then to the lawyer or agent at their fee.

00:41:18: none of this will happen.

00:41:19: If you deal international transfers, why is it?

00:41:21: sometimes happens instantaneously but even why?

00:41:25: want to take four or five days, double check?

00:41:27: everything is legit.

00:41:30: You as an agent need to receive the funds from your buyer and distribute them domestically.

00:41:35: then you can receive it in advance because they are taking care of their deal but not the seller right?

00:41:41: And we know exactly when the fund will be remitted and receiving them so that our buyer knows if he can manage his property for him.

00:41:54: Ask them if they're prepped for it, and ask how to manage the property post-settlement.

00:42:00: It's okay not do that but you need to ask because a lot of times there are assuming this is going be case.

00:42:05: If your done all over above You might actually end up Not smooth.

00:42:11: I would say.

00:42:12: The first time will always be rough ride But asking each other questions in advance and relaying information well you'll most likely at least end with a good relationship intact and be ready to do it little bit smoother on your next purchase or in the next time servicing foreign clients.

00:42:33: But, first-time can be rough... It's made much less rough if we discuss everything that needs to be discussed in advance And If You're Aware That The Other Side Is Coming From A Very Different Place.

00:42:43: Its Just Not The Same Here Only slightly over time.

00:42:47: I think Yes!

00:42:48: So questions?

00:42:53: I'm

00:43:13: speaking as an American.

00:43:14: We have these things called title companies,

00:43:16: right?

00:43:17: But

00:43:18: we all know that there's costs involved in the real estate transaction.

00:43:24: so if you're talking about a traditional sense where Mr.

00:43:29: Byer would pay Mrs.

00:43:30: Seller directly once all of documents are signed and confirmed How do the various costs, say for example the commissions to real estate agents and so forth get

00:43:40: paid?

00:43:49: So traditionally if everything is done domestically within Japan then those will be separate transactions made from one Japanese bank account to another Japanese bank accounts.

00:43:58: One to the seller, one to lawyer or agent And eventually to tax department when you purchase a tax bill.

00:44:06: Because we're dealing with many cases, foreign buyers who do not have a bank account in Japan and can't do this again.

00:44:12: We would recommend that the agents wrap their head around the concept of receiving all of the funds in bulk And as per the settlement statement distributing them domestically to where they need To go at the date At which you need to go there?

00:44:27: Um...we've had cases Where Shiho Joshi is were the judicial scriveners In charge Of the ownership transfer Stepped up usually in case where the agent for one reason or another suddenly discovers that they can't receive funds from overseas and They've done it on their behalf, but it's really the agents job to do That.

00:44:44: so they should be receiving everything From you in advance and distributing it domestically.

00:44:51: hands stream Yeah back there.

00:44:54: I'm

00:45:02: just curious.

00:45:04: The role of buyer versus seller agents.

00:45:06: in the States There can be deals as i'm sure you know were Basically, the buyer is not paying any commission.

00:45:13: It's just that there are two agents but the person who has taken a buy-around actually representing the seller and then might be another agent to have the listing.

00:45:25: so the sellers pay those two agents and buyers aren't paying it?

00:45:29: Is this kind of situation here or does it always sell an agent while the buyer pays for the seller?

00:45:38: A buyer's agent is not a super common thing in Japan.

00:45:41: The way it legally works here, the listing agent or the seller's agent... ...the one who was in charge of the listing could be a few them.

00:45:48: Exclusivity isn't that common.

00:45:50: so the sellers' agent who helped sell their property charges the seller any other agents might have brought.

00:45:58: a buyer-in gets to charge the buyer And often it's going to be the same agent.

00:46:03: So, one listing of property will look for a buyer and if they manage find a buyer on their own there'll be charging both sides.

00:46:10: If somebody else brought in a buyer then that agent would charge the buyer.

00:46:14: Some agencies have some greedy policy whereas they want to double-dipping each other In which case I mean a foreigner.

00:46:22: friendly flexible bilingual agent will offer you an option to pay them separately But in that case, you will need to pay a double fee.

00:46:30: So I reserve it for properties which are otherwise very interesting then.

00:46:37: What else?

00:46:38: There was another hand there before... Anything from the stream?

00:46:42: No!

00:46:42: Thank-you for your time.