Why is your house in Japan not selling? What to do
Are you trying to sell your home in Japan without success? Often, the problem is not your advertising, but setting a price based on your debts instead of the real market value.
Why is your house in Japan not selling? The mistake of mixing debt with market value
You decided to sell your house in Japan and listed it with real estate agencies, but time passes and no one makes a serious offer? This frustration is very common. Often, we help families stuck in this cycle, and the cause is usually not a lack of views, but the price of the property.
Many foreign residents here in Japan make the mistake of looking only at their remaining loan balance when selling. If you have a housing loan, a solar panel loan, and a garage debt, it is normal to want a price that covers all of them. However, the Japanese real estate market works on logic, not personal needs.
Does the buyer pay your debt or the property value?
Imagine you have a house in Aichi or Shizuoka and, adding your housing loan, solar panels, and other costs, you need 26 million yen to pay off everything. However, houses with the same size and location in your neighborhood are selling for 22 million yen.
The hard truth is that no buyer will pay 4 million yen extra just to cover your loan balance. The buyer compares your home with other options on the market. If your price is not realistic, you can list with ten agencies, use professional photos or videos: if the price is wrong, your house will not sell.
What are the risks of listing with many agencies?
There is a myth that listing with many agencies helps sell faster. In reality, when a property stays on the market too long with a high price, it gets “burned”. Agents and buyers notice that the house has been available for months, which causes doubt about its condition or hidden problems.
Is there a solution when debts are higher than the property value?
If you see that the real market value of your house is not enough to pay your debts, do not panic, but do not ignore the problem. The longer you wait, the more interest and monthly payments will take away your remaining money.
When a normal sale is not enough, Nin’i Baikyaku (voluntary sale) is an option. This process lets you sell the property with the agreement of creditors (banks and finance companies), even when the sale price is lower than your loan balance. It is a way to avoid a court auction, which is usually much worse for the owner.
Important points about the Voluntary Sale:
It is not debt cancellation: The voluntary sale helps end the property cycle, but the remaining debt must be negotiated case by case.
Strategic negotiation: Unlike an auction, in a voluntary sale you have more control over the process and can negotiate deadlines and terms with creditors.
Professional evaluation: It is important to have consulting that knows how to talk to Japanese banks, because each bank has different rules.
How can Ji Consulting help you?
We have worked in the Japanese real estate market for over 20 years, helping foreigners organize their finances and property. We serve AICHI-KEN, SHIZUOKA-KEN, MIE-KEN, GIFU-KEN, SHIGA-KEN, KYOTO, OSAKA, FUKUI-KEN, ISHIKAWA-KEN, TOYAMA-KEN, NAGANO-KEN, YAMANASHI-KEN, KANAGAWA-KEN, TOKYO, SAITAMA-KEN, CHIBA-KEN, IBARAKI-KEN, GUNMA-KEN, TOCHIGI-KEN, only for buying or selling.
For debts, we only help people who own property in Japan and plan to sell it. If your numbers do not match, do not try to solve it alone. A lack of knowledge about the Japanese system can lead to choices that make your financial situation worse.
We will check your situation clearly. We offer support in English (LINE or WhatsApp) to schedule a consultation. The first step to fix your financial life in Japan is to have a real view of your property.
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