Q01-Are there any points to consider when purchasing a real property in the US?
First and foremost you should select a reliable realtor very carefully. You should research the agent's work experience, market knowledge, reputation and character. Clearly inform your expectations and what you are looking for and have the agent show you several options to find the best property. Also, before signing any documents, read the entire document carefully and make sure you understand your rights and liabilities.
Q02- How much money is required when purchasing a property?
Buyers are not required to pay commission. The seller pays approximately 6% commission to the agent.
Also, unlike in Japan, you do not pay real estate acquisition tax, stamp duty and registration license tax. Some of the costs associated with the purchase are; home inspection fees, escrow fees, government recording charges, Title fees and lender's title insurance, Lender's origination fees, but they may vary according to the price of the property, type of loan and area. It can be estimated an approximately 2~5% of the price of the property. Moreover, the property tax and a prorated sum of the home owner's association fee are charged through escrow.
Q03-How much is the property tax?
The property tax rate varies per state, in California the property tax rate is an average of 1.25% of the purchase price.
Q04-Many properties in the U.S. are 20 years old or older, should I be concerned?
In Los Angeles, when people hear that the property was built in 1980s most of the time their reactions are "oh, it's still new!" because properties built in the 50s or 60s are still actively traded in the market. In fact, the secondhand real estate market is very active. An over 100 years old apartment in Hollywood is still traded in the market for a very high price. The value of a beautiful property in a great condition that requires minimal maintenance will rarely decrease and sometimes depending on the market it can go up. In the same way, when the city is old and it has established a good reputation, it could be considered as a secured city and many times it could be known for a luxury residential zone comparing to a new city, which opposed to Japan.
Q05-Can a real estate purchase contract be processed and finalized while in Japan?
Yes, you will need to sign the title registration document and have it notarized in Japan but other documents including communication can be done by fax, email, air mail or phone. Also, the closing cost can be sent and paid directly to the escrow.
Q06-How long does it take to complete the purchase?
30~45 days. If purchasing by cash, it can be less.
Q07-I can barely speak English, would this be a problem?
Not at all! The key is to find a Japanese & English bilingual real estate company with extensive knowledge of the business. Indigo are formed by Japanese professionals, excellent American staff to make sure customer satisfaction. You can also rely on our experts to manage your newly purchased property.
Q08-Can a foreigner obtains a loan?
Yes, it is possible. If you would like more information, please contact Indigo for the lender's information.