Differences Between Real Estate in the U.S. and Japan – Vol.1

Today, I’d like to talk about the differences between real estate in the U.S. and Japan by answering a frequently asked question.

To be honest, I can’t fully explain the Japanese real estate system since I obtained my real estate license and started my career in the U.S. However, one of the most common questions I receive from Japanese real estate professionals when they reach out about potential partnerships is:

“Is it possible to sell a property for more than the list price and keep the difference?”

In the U.S., that kind of practice is absolutely not acceptable.

First and foremost, to ensure the buyer is satisfied with their purchase, we disclose all relevant market information. This is a standard step in the transaction process. During the contract period, the buyer is even required to sign off in acknowledgment of this market data.

This information includes what's called “Compared Properties” (commonly referred to as “comps”), which shows how much similar properties in the same area are listed for or have sold for within the past year. This data is detailed and objective.

Of course, some properties—especially unique or highly desirable ones—can sell at or above the list price. But the idea of someone being forced to overpay simply doesn’t happen here. In fact, when we represent the buyer, our job as agents is to negotiate fiercely to get them the best possible price and terms.

Conversely, when we represent the seller, our role is to negotiate in a way that maximizes the value delivered to the seller. This is the pride and duty of both buyer’s and seller’s agents. Above all, we are committed to meeting our client’s goals and acting in their best interest. That’s the core of our “client-first” approach.

There are many ways to negotiate, but what I personally prioritize is deeply understanding the market and the property. I also work to establish strong communication with the other agent and gather as much insight as possible about their client’s situation.

If I go into too much detail, I’d be revealing my negotiation strategy… 😄

If you’d like to hear more, feel free to reach out anytime. 😊