Japan’s real estate market is unique in many ways, with cultural norms and industry-specific rules that may not always be clearly communicated to prospective buyers, particularly those from overseas. One such rule that plays a crucial role in the buying process is the expectation that once you view a property with a real estate agent, you cannot request a different agent to arrange a viewing or handle brokerage for the same property. This unwritten guideline, though not legally mandated, is widely respected and strictly followed by professionals in the industry.
This article will explore the reasons behind this practice, its implications for buyers, and the best approach to navigating the Japanese real estate market without unintentionally limiting your options.
The Unspoken Rule: What it Means and why it Exists
Unlike some countries where buyers can engage multiple agents to help view and negotiate for a single property, Japan’s real estate industry operates on a different set of expectations. If an agent arranges a viewing for you, that agent is considered your exclusive representative for that property. If you later try to view the same property through another agent or attempt to work with a different company for the purchase, it can create complications that might prevent you from being able to buy the property at all.
The reasoning behind this practice is rooted in the relationship between buyer’s agents and seller’s agents. When your agent contacts the seller’s agent to schedule a viewing, the seller’s agent requires the buyer’s details before confirming an appointment. If the seller’s agent realizes that an agent is trying to schedule a viewing for a buyer they’ve already worked with, they may refuse the second request. This prevents agents from competing for commissions on the same property and ensures a smooth transaction process for the seller’s agent without confusion or conflict of interest.
How this Affects Buyers
For buyers, understanding and respecting this practice is essential to avoiding unnecessary frustration or disappointment. Here are some key takeaways:
- You Must Stick with the Same Agent for a Specific Property – Once you have viewed a property with an agent, you are expected to continue working with that same agent if you decide to pursue that property. This means that even if you later find another agent you prefer or trust more, they will unfortunately be unable to assist you with that property.
- Working with Multiple Agents is Acceptable, but Be Strategic – Buyers are free to work with multiple agents to explore different property options. However, seller’s agents consider multiple agents arranging viewings for the same property to be unethical and will likely lead the seller’s agent to refuse future appointments.
- Once a Viewing is Scheduled by an Agent, the Property becomes Exclusive to said Agent – Even if you have not signed an exclusive agreement with an agent, once they schedule a viewing on your behalf, they are considered your representative for the property. If you later request another agent to act as your broker, they will not be able to work on the property for you.
- The Seller’s Agent Controls the Viewing Process – Since the seller’s agent manages property access, they are the ones who will decline additional viewing requests for the same buyer if they notice multiple agents attempting to schedule an appointment. This is a key reason why attempting to work with multiple agents on the same property is ineffective.
Best Practices for Navigating the Japanese Real Estate Market
To avoid complications and maximize your chances of securing the right property, here are some best practices for working with agents in Japan:
- Be Clear about your Agent Strategy – If you are working with multiple agents, ensure that each one is helping you explore different properties. Avoid requesting viewings for the same property through different agents to prevent potential conflicts.
- Choose your Agent Carefully – Before asking an agent to arrange viewings, take the time to assess their professionalism and communication style. Since you will be required to stick with them for any property they show you, choosing the right agent from the beginning can prevent future regrets.
- Communicate Openly with your Agent – If you are working with multiple agents, let each one know your approach. A good agent will respect your decision as long as you are not asking them to view properties you have already viewed with another agent.
- Confirm Viewing Arrangements before Proceeding – Before committing to a viewing, ensure that you are comfortable with the agent representing you for that property. Once they set up the viewing, switching to another agent will not be an option for that particular listing.
- Understand the Role of the Seller’s Agent – The seller’s agent ultimately controls property access and will only coordinate with one buyer’s agent per prospective client. Attempting to work around this system will not be successful and may even damage your credibility as a buyer.
Why this Rule Matters
This unwritten rule serves an important function in maintaining order and professionalism within the Japanese real estate industry. It protects agents on both sides by ensuring that customers and their representatives do not have to deal with unnecessary complications. From a buyer’s perspective, adhering to this practice will allow you to build a strong relationship with your chosen agent, who will be better equipped to negotiate on your behalf and secure the best possible deal.
Dovetail’s Thoughts
Japan’s real estate market operates on a foundation of mutual respect and industry norms that may not always be immediately obvious to foreign buyers. In particular, the expectation that buyers remain with the same agent for a property once a viewing is arranged is a crucial aspect of navigating this market successfully. By understanding and following this unspoken rule, buyers can ensure a smoother experience, maintain good relationships with industry professionals, and ultimately increase their chances of securing their desired property with minimal stress involved.
If you are planning to buy property in Japan, working with a trustworthy and knowledgeable real estate agent is essential. Choose your agent wisely, communicate openly when you work with multiple agents, and respect the structure of the market to make your property search as seamless as possible.