Arrows International Realty
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
    • Learning
  • Latest Information
    • Latest News
    • We Love Kyoto
  • Column
  • About Us
    • Records
    • Partners
    • Cookie Notice
    • Sitemap
  • Contact

7/10/2020

Reasons to Reduce Real Estate Prices

Read Now
 
There are many reasons why real estate sales prices may fall, but the biggest reason is when supply and demand are out of balance. Regardless of real estate, if the demand is high, the price goes up, and if not, the price goes down. However, real estate is one-of-a-kind item, and if the real estate has a scarcity value, the price will equilibrate, or the pace of price decline will slow.
So from the standpoint of the seller, we would like to explain why the real estate is sold and why the price is lowered. Except for special cases such as auctions, the reason for selling real estate is because it is no longer used, sell it because it is not essential and can be sold high in the market, sell it because cash is absolutely necessary, sell real estate to relocate assets, or sell the real estate that was purchased to sell at a high price from the beginning. Let's look at each case.
Sell real estate because the seller doesn't use it
If the seller already owns his or her own residential property, but the property is acquired through inheritance, what will happen to the property? In the case of real estate inherited from their parents, they may have lived in their childhood. In that case, the building is probably over 50 years old. If demand for leasing is expected, it can be renovated and held as rent. However, if the refurbishment costs a lot of money, it will inevitably proceed to sale.

The owner does not necessarily have to own the real estate and sells because it seems that it can sell high in the market
If the owner finds that the property he/she is not planning to sell can actually be sold at a high price, if there is no compelling reason to own it, then owner sells the property.

Owner sells real estate for cash
It's similar to an auction of real estate, but if the owner can't afford to repay the loan or needs a lot of cash, owner sells own real estate and cashes it out.

Sell real estate to relocate assets
When an investor owns real estate for profit, it may replace the real estate after the end of its useful life. In this case, the real estate may be sold at a time when the yield decreases or the buyer's loan is easy to obtain.

Sell the real estate owner bought to sell at a high price from the beginning
This is a case where a real estate agent mainly sells as a business. For example, real estate purchased at a low price may be sold at a high price by resale, or real estate may be sold with added value such as renovation.​
Then, which of the above is the case where owner have to sell the real estate even if they lower the price?
​
The seller who bought the real estate for resale originally wants to sell it first. There is no purpose in owning real estate, and the difference between the amount sold, the amount purchased and the amount renovated is a profit, and they operate the business by increasing the turnover ratio of purchase and resale. Therefore, it is easy to operate the business in the environment where the price is rising, but in a recession, the profit margin decreases and the turnover rate decreases, which makes it difficult to operate the business. Since there are many cases where real estate is purchased using loans, considering the interest rate burden, it is a good idea to let go at the price and timing when they can sell.

Secondly, the seller who really needed cash, hurries to sell it, but there is always a price floor. Since the purpose of the sale is to cash the real estate and use it for payment, the price of cash in hand after paying the necessary expenses is the most important. In this case, the real estate is sold to the real estate agent. The price will be cheaper if agent buy it directly from the owner, but owner can get cash on the same day. Real estate agents do not care about things that general buyers are concerned about, such as defects in real estate. Therefore, here is the reason why real estate that does not appear in the table can buy at low cost by real estate agent.

Next is a seller who will never use the real estate owned by inheritance. In this case, the real estate that is three or five years old from the inheritance is put up for sale in the market. Some real estate agents subscribe to a list of owners of real estate whose inheritance has changed, and they will send a letter to the new owner of the listing to appraise the sale. By sending a letter to the owner who is considering how to use the real estate, new owners feel like trying to sell at the assessed amount once. In this way, inherited real estate is often sold on the market.

Sellers wishing to relocate their assets will consider lowering the price or suspending the sale. If the investor owns multiple real estate, owner will try to improve the financial condition by relocating to a more profitable real estate. They don't necessarily have to sell it, but in future plans, they will sell it at a convenient time.

And the seller who originally did not need to sell, but tried to sell at a high price, would either hold the sale itself or keep the price and sell when a good buyer appears. In this case, the purpose is to sell the real estate at the desired price, so there is no need or reason to reduce the price.
The price of real estate is formed by a mixture of the purpose of selling such real estate and the reason for lowering the price. ​On our real estate sales site, we will update the property whose price has dropped by dividing it into a new category. If you are interested in the trend of price cut real estate, please check here.
Price Changed - Real Estate Kyoto
Picture
In some cases, the price of real estate will drop due to the impact of COVID-19, but in many cases the price will not change at all depending on the purpose and reason of the sale. The price reduction of real estate starts from the seller who wants to sell the real estate in a hurry, but the price depends on the seller's financing strength. If you have any questions or if you are considering selling real estate, please contact us.

Share


Comments are closed.
Details

    Author

    Arrows International Realty Corp.

    Archives

    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    July 2021
    January 2021
    December 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020

    Categories

    All
    360°
    Affidavit
    Airbnb
    Apartment
    Apartmment
    Application
    Architect
    Bank Account
    Bank Loan
    Bath Unit
    Brokerage Fee
    Buyandsell
    Cadastral Map
    Camping
    City Planning
    City Planning Areas
    Condo
    Construction Company
    Consulting
    Custom Home
    Demolition
    Depreciation
    Design
    Disaster Countermeasure
    Disaster Information
    Disaster Prevention
    Dismantlement
    Districts
    DIY
    Do It Yourself
    Documents
    Door Lock
    Double Window Sash
    Earthquake Resistance Standards
    Earthquake-Resistant
    Eel's Bed
    Escape Route
    Established A Corporation
    Evacuation Site
    Financing
    Fire Insurance
    Fixed Term Building Lease Agreement
    Flood
    For Rent
    For Sale
    Fusuma
    Garden
    General Corporation
    Go To Travel Campaign
    Guarantor Company
    Guesthouse
    Hatsu-bon
    Heavy Rain
    Home Loan
    Hotel
    House
    Housing Fire Alarm
    Housing Loan
    Inn
    Inns And Hotels Act
    Insulation
    Investment
    Investment Loan
    Investment Strategy
    Key Exchange
    Kitchen
    Kyo-machiya
    Kyoto
    Kyoto Shinkin Bank
    Land
    Land For Sale
    Land Use Zones
    Landslide Disaster
    Lease Agreement
    Lessee
    Lessor
    License
    Lot Number
    Machiya
    Machiya Design
    Machiya Loan
    Maintenance
    Management
    Mediation Contract
    Minpaku
    Money Flow
    Monthly Cost
    Mortgage
    Move
    National Strategic Special Zones Act
    Negotiation
    New Construction
    Non-rebuilding
    Obon
    Old House
    Omoteya Style
    Overlap Roofing
    PR Visa
    Price Reduce
    Private Lodging
    Private Lodging Business Act
    Property Management
    Purchase
    RC Structure
    RC-Structure
    Real Estate
    Real Estate Agents
    Real Estate Assessment
    Real Estate Investing
    Real Estate Ownership
    Real Estate Tour
    Rebuilding
    Registration Certificate
    Regular Rental Agreement
    Reinforcement
    REINS
    Remodeling
    Remote
    Remote Work
    Renovated
    Renovation
    Rent
    Repair
    Reserve Fund For Repair
    Residential Address
    Rethatching
    Risk Management
    Roof Painting
    Ryokan
    S Structure
    S-Structure
    Sales Contract
    Second Home
    Seismic Control
    Sell The Property
    Set-back
    Shiga
    Shin-bon
    Single-story Home
    Sliding Door
    Soundproofing
    SRC Structure
    SRC-Structure
    Stamp Duty
    Stamp Tax
    Standards
    Structure
    Swimming
    Tatami Mat
    Tax
    Tax Return
    Tea House
    The Building Standards Act
    Tile Roofing
    Transaction
    Tsubo
    Tsunami
    Ura-bon-e"
    Vacation Home
    Vacation Home Management
    W Structure
    W-Structure
    Waterproof
    WFH
    WFH In Kyoto
    Withholding Tax
    Zones

    RSS Feed

Home
About
Contact

​Jp
CN

Real Estate agent in Kyoto, Buy and Sell, Leasing, Renovation and Construction, Management for Investment and Vacation Property, Professional Services for International Customers. We deal in KyoMachiya houses, detached and attached Houses, new and old Condominium Apartments, Block of Apartments and Buildings for Commercial, Residential and Investments use, Manage and Support Operation and New Development of Guesthouse, Ryokan and Hotel, Total Supports for Land and Buildings Real Estate in Kyoto.
Yours sincerely, Founder Ken Hayashi
Real Estate Broker Company License No. Kyoto-Fu Governor ( 1 ) 14044 , ​Member of Kyoto Association of Residential Land Building Business
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
    • Learning
  • Latest Information
    • Latest News
    • We Love Kyoto
  • Column
  • About Us
    • Records
    • Partners
    • Cookie Notice
    • Sitemap
  • Contact