LIFULL HOME'S Conducts First Study on Fake Listings in Used Property Market

LIFULL HOME'S Initiates Investigation into Fake Listings in the Used Property Market

LIFULL, a prominent company based in Chiyoda, Tokyo, and known for its real estate and housing information service, LIFULL HOME'S, has focused on addressing social issues through its operations. The initiative aims to enhance consumer confidence in property searches by maintaining a high freshness rate for listings. For two consecutive years, the platform has been recognized as the number one in property freshness in the rental market.

Recently, LIFULL HOME'S has successfully conducted a study centered on the occurrence of fake listings, or 'bait properties,' in the used housing market. This investigation was targeted at 500 individuals who had considered purchasing used homes over the past year. The findings revealed that nearly one in three people had encountered these deceptive listings.

The Background of Fake Listings

The trend of soaring housing prices has made used homes a more appealing option, often priced lower than their new counterparts. Consumers can often find better locations and larger spaces within their budgets when opting for used properties. However, since each used home is unique, consumers must act quickly when they find a property that meets their criteria.

Despite the advantages of used homes, the structure of real estate transactions makes them susceptible to bait properties—listings that are no longer available, those that are listed but not genuinely on the market, or fictional properties.

Understanding the Real Estate Transaction Process

When selling a property, the relationship between the seller and real estate agency typically falls under either an exclusive listing agreement or a non-exclusive agreement. This requires the property to be registered with REINS, a database for sharing property information and sale status among real estate agencies. Other agencies then advertise these listings on their own websites or real estate portals. However, it is common to require consent from either the seller or the listing agency before these ads go live.

Consequently, there may be delays in updating the information regarding inquiries or contracts, which could lead to properties that are already under agreement remaining listed. This discrepancy often results in consumers viewing these listings as 'bait properties'—real estate that cannot be processed for inquiries.

The investigation conducted by LIFULL HOME'S was designed to gather insights on the circumstances that consumers face when searching for used properties.

Survey Overview

- Survey Period: December 16-19, 2025
- Target Group: Individuals who used real estate portals or apps to consider purchasing used properties within the past year (nationwide, aged 30-59, both genders)
- Method: Online survey
- Valid Responses: 500 individuals

In this survey, 36.8% of respondents confirmed encounters with fake listings—reflecting that approximately one in three consumers faced this issue.

Defining Bait Properties

Bait properties include listings that: 1. Are no longer available for rent or sale, 2. Are listed without genuine intent to sell, and 3. Are entirely fabricated. Responses showed that the most common reason consumers identified a property as fake was that they were informed a property had already received an application (69%). This was followed by being denied viewings by the agency for various reasons (45.1%). Consumers often only learn of the status post-inquiry, highlighting the systemic flaws within the process.

Emotional Impact of Encountering Bait Properties

Upon realizing they’d engaged with a bait property, many respondents expressed feelings of mistrust towards real estate agents and the industry (50%). They experienced disappointment over wasted time and often felt resigned to the situation (44.6%). This sentiment suggests that the impact extends beyond mere opportunity loss, deeply affecting trust in the housing search process overall. Furthermore, the emotional ramifications included reported time loss (48.9%) and significant stress (44.6%). Some even cited decreased enthusiasm for house hunting and compromises due to a lack of sufficient time for their searches.

Addressing the Issue of Bait Properties

In response to the prevalent issue of bait properties, LIFULL HOME'S is committed to ensuring consumers can confidently search for homes. The firm aims to increase the freshness of available listings. To tackle the bait property dilemma, it employs patented data linking with real estate management companies and utilizes AI to detect and automatically remove bait properties from listings.

The survey findings reinforced the need for vigilance in the used market, revealing that this issue is not limited to rentals but is increasingly relevant in the sales sector. LIFULL HOME'S intends to apply the maintenance visibility tools developed through its rental work to improve detection accuracy for used home sales. The company has already achieved over 97% precision in identifying properties that are no longer available for sale, automatically removing those from listings.

Future Initiatives

The results of this survey have underscored the need for clarity and reliability when consumers first engage with property listings. LIFULL HOME'S will continue to enhance its algorithms and linkages to reduce the presence of bait properties, ultimately aiming to foster a more reliable and trustworthy market for used homes.

Comments from Yuko Miyasako, Head of Property Information Precision at LIFULL HOME'S

Yuko Miyasako emphasized that the study revealed how consumers lose vital time and make poor decisions due to their encounters with non-viable property listings—diminishing their trust in the housing search process. Clearly, the accuracy and immediacy of property information significantly influence consumers’ choices, given the distinct nature of used homes. LIFULL HOME'S is dedicated to diminishing the incidence of bait properties as it aims to provide a secure environment for consumers seeking used homes.