Your search for real estate in Tokyo starts with finding the right agent. No real estate transactions in Japan can be realised without a licensed broker. It is imperative that you find a professional you trust — as this will determine what kind of real estate you will be able to bid on, for what price, and how smoothly the process will flow.

While you can simply Google and pick the first well-known name, we have compiled a list of recommendations to increase your chances of finding the agent that will in turn find you the right property.

1. Ask for referrals

If you are house-hunting, ask about others’ experiences. Your friends and expat coworkers might be able to point you to a good agent — or away from a bad one.

Questions to ask include the asking price and final sales price of their property, the agent's level of service and English, and your contact's general impression of the ethics and professionalism of the agent.

You can also check online expat groups and forums to see if you can find any recommendations or complaints.

2. Read the agent's website/blog

Most real estate agencies in Tokyo have websites that provide content beyond the basics of their business. Reading the articles they publish on their site or blog can give you good insights into what type of real estate they specialise in and if it matches what you are looking for.

They might also list currently available properties or past sales. Are these in the area(s) you are considering? Do the price tags match your budget? The content will also give you an idea of their scope of knowledge.

3. Check their licences

Japan has strict regulations for real estate practitioners, and the government oversees a number of different property-related professional licences. The minimum requirement is a licence to operate a real estate business (宅地建物取引業/Takuchi-tatemono-torihiki-gyo). For this, real estate companies need to ensure that for every five staff members, they have at least one licensed agent.

A licensed staff member is known as a takken-holder, which refers to a registered real estate transaction specialist (宅地建物取引士/ Takuchi-tatemono-torihiki-shi). A takken-holder needs to be present during a real estate transaction to explain the details to all parties involved. The law requires them to display their licence during the signing of any contracts.

Furthermore, a large agency might employ other certified staff or have professional relationships with specialists, such as licensed real estate appraisers and architects.

4. Choose someone who understands you

This point is central — but not only when it comes to language. “All agents have access to the same properties on the Tokyo market, so find one that you feel comfortable working with and that is easy to communicate with — ask a lot of questions and get a dialogue going,” advises Zoe Ward, CEO of Japan Property Central.

A real estate agent well versed with international clients is also used to doing a lot of patient explaining on how things work in Tokyo, and can gauge differences in preferences.

While every client is unique, there are patterns: a more cosmopolitan agent naturally understands that many Western families look for larger kitchens that fit an oven or dishwasher and that they would love a home with a garden, which are both typically lower on the priority list for Japanese locals, and that Chinese investors may have a different risk profile compared to domestic individuals looking for a property to rent out.

As a rule of thumb: if the agent has under five years of experience serving international clients, then they are learning by servicing you, which could be a disadvantage.

5. Choose the area, then the agent

Tokyo is vast — 2,188 km² to be precise. Not every agent can cover all 23 wards and the areas beyond. Ward suggests: “Instead of looking at the city as a whole, you need to consider the market forces at work in each neighborhood. It is a big metropolis with many sub-markets.”

It is in your best interest to choose an agent who is familiar with the area you are interested in. This might mean going for a smaller agency in some cases, or asking to be transferred to an agent who specialises in the area you are interested in within the same agency.

As long as you find that 1) the communication goes smoothly, 2) they are experienced in serving international clients, and 3) they are knowledgeable and trustworthy, a small agent is by no means less desirable than a big name.

6. Educate yourself and test their knowledge

When viewing properties, it is very important to know which questions to ask. Has the property been renovated? When, and what has been done? Is the building substance concrete, reinforced concrete or super-reinforced concrete? All of these represent different eras of Japanese earthquake damage prevention standards.

Also, how high are the annual property taxes? Or will this open view vanish in the near future because of a planned development? Your agent should know the answer to some of these questions, or be willing to find out.

If you are looking in the lower budget range, it means that the agent won’t earn as much commission from you, so you'll need to beware of agents who put in zero effort because of this.

“If you're buying investment property, which requires more professional due diligence, and you're not sure what you should be checking in advance, it's probably a good idea to enlist the services of a professional buyer's agent, or at least a realtor who has your interests in mind, as opposed to someone who just wants to offload particular stock and move on to the next sale — unfortunately the case with most local realtors," cautions Ziv Nakajima Magen, Partner and Executive Manager at Nippon Trading International.

By educating yourself on real estate in Tokyo, you can arrive at viewings well prepared.

7. Choose someone you trust

Not all agents will have your best interests at heart. Buying real estate can be a life-changing decision, so it is crucial to work with someone ethical. If you feel your agent is trying to manipulate you into buying, take a big step back and look for a new one, even if it takes time.

“You need to look for an agent who is interested in educating you about the market while they are trying to sell you property," emphasises Adam German, Business Development Manager of Housing Japan. "This means the agent is concerned more about making sure you are comfortable with your purchase than trying to make a quick commission. If your agent is trying to hard-sell you and you feel rushed into a decision, then walk away and find another agent." 

A trick to watch out for includes showing you a handful of poor-quality properties to lower your expectations, before whipping out a mediocre one that now looks more shiny to you than it is in reality.

Also beware if the agent tells you that there is already another interested buyer every time you express interest in a place—the real estate market has cooled down a bit in 2018 compared to the previous years, and this might not be true for all the properties.

To sum up, trust your gut feeling. If you feel uncomfortable or that something is off, it might very well be. It is not worth risking it for a decision as big as buying property.

By Mareike Dornhege

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