#Japan #Tokyo #MEMOCO #Condominium #Sumanara

Understanding the Importance of Third-Party Appraisals in Used Condominium Purchases

A recent survey conducted by MEMOCO, a Tokyo-based company specializing in quality control and article production, alongside Sumanara, delves into the choices made by buyers in the used condominium market. The survey targeted 103 individuals who have experience purchasing used condominiums, aiming to gather insights on the importance of third-party appraisals and home inspections.

Survey Overview

The survey was conducted from January 29, 2025, to October 3, 2025, utilizing internet methodologies through a crowdsourcing service. The demographics of the respondents included 57 men and 46 women, with a relatively balanced representation across different age groups:

• - 20s: 14%
• - 30s: 25%
• - 40s: 39%
• - 50s: 17%
• - 60s and older: 5%

Third-Party Appraisal Implementation Rates

The results unveiled that a staggering 86% of buyers did not engage in third-party appraisal or home inspection services. Only 14 participants—accounting for 14% of respondents—sought this expert input. This substantial gap indicates that many purchasers rely solely on real estate agents’ information when making decisions about their potential investments.

Reasons for Not Seeking Appraisals

The predominant reasons individuals chose not to pursue third-party assessments include:

• - Lack of perceived necessity.
• - Belief that information from real estate professionals sufficed.
• - Concerns about additional costs.
• - Limited time availability.
• - Unawareness of such services.
• - The age of the property (notably newer constructions).
• - A general inclination towards convenience.

These responses highlight two significant factors: a prevailing assumption that real estate agents provide sufficient information and a general hesitation regarding additional expenses associated with third-party services.

Appraisal Costs Breakdown

For those who did pursue appraisals, the costs varied as follows:

• - Under ¥40,000: 13%
• - Between ¥40,000 and ¥50,000: 69%
• - Between ¥50,000 and ¥60,000: 19%

Notably, nearly 70% of respondents who sought appraisals incurred costs within the ¥40,000 to ¥50,000 range. Although this amount might seem modest in context to the total expenses of purchasing a used condominium, the reluctance to invest in non-essential services persists.

Satisfaction Rates from Appraisals

Among the small group of respondents who utilized appraisal services, satisfaction rates were notably positive, with the following responses:

• - Found it helpful: 50%
• - Somewhat helpful: 44%
• - Somewhat not helpful: 6%
• - Not helpful at all: 0%

When combining the positive responses, a remarkable 94% of participants who had appraisals felt they derived value from them, indicating a high level of contentment with their investment. Feedback highlighted various benefits, including:

• - Gaining an objective understanding of the property’s condition and market value.
• - Receiving advisement on potential future issues.
• - Identifying unseen depreciation or the need for repairs.
• - Obtaining professional opinions that validated their purchasing decisions.

Reflection on the Need for Appraisals

In reflection, survey respondents were asked their views on the necessity of appraisals post-purchase:

• - Believed necessary: 29%
• - Somewhat necessary: 17%
• - Somewhat unnecessary: 17%
• - Believed unnecessary: 37%

This results in a near split, with 46% advocating for appraisals and 54% opposing. Interestingly, many who initially opted out of seeking an appraisal later reconsidered its value, counting several compelling reasons for considering appraisals.

Reasons Supporting the Need for Appraisals

Those now seeing the necessity of appraisals frequently cited:

• - Preventing financial loss.
• - Valuing expert input.
• - Gaining peace of mind by understanding potential issues ahead of purchase.
• - Ability to maintain asset value for future resale opportunities.
• - Avoiding post-purchase surprises and related headaches.

Summarizing the Findings

The overall findings make it evident that while only a mere 14% of used condominium buyers pursue third-party appraisals or inspections, the discernible satisfaction from these services suggests significant value. The gap between awareness levels and actual engagement with appraisal services raises important considerations.

Given that used condominiums differ from new constructions as they may show more signs of wear and tear each with varying conditions, factors like unknown issues might significantly impact future buyer regret or property value. Therefore, spending a small amount initially on a third-party appraisal can serve as a valuable investment for reassurance and informed decision-making.

Ultimately, buyers are encouraged to weigh the long-term benefits of third-party services against the initial costs to avoid discrepancies in their future investment experiences.