We have compiled a list of frequently asked questions regarding the purchase of real estate in the United States.
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Please feel free to contact us if you have any questions regarding real estate purchases, loans, or contractual procedures.
First, choose a reliable real estate professional. It is important to select someone you can trust, taking into account factors such as their background, track record, and personal character.
Clearly communicate your preferences so that you can be guided in selecting a property from the many available listings. It is also important to fully understand the nature of any documents before you sign them.
There is no brokerage fee for the buyer; the seller covers the commission for the buyer’s agent. Furthermore, unlike in Japan, there are no real estate income taxes, stamp duties, legal/registration fees, or consumption taxes.
Major costs include home inspection fees, escrow fees, registration fees, notary fees, title insurance, document preparation fees, and loan processing costs. While these expenses can vary significantly depending on the property price, loan terms, and location, you should generally anticipate costs amounting to approximately 2–5% of the property price.
Additionally, prorated expenses—such as property taxes and homeowners' association fees—are settled upfront through escrow.
In the United States, property tax rates vary by state. In California, a rough benchmark is approximately 1.25% of the purchase price.
In Los Angeles, properties that are 50 or 60 years old are commonly traded, and the market for existing homes is highly active. In areas like Hollywood, even apartment buildings over 100 years old remain in active use and can sometimes command high prices.
Properties that are consistently well-maintained—kept in a beautiful and sound condition—tend to retain their value, and in some markets, may even see their value increase.
The same holds true for neighborhoods: older, more mature communities often enjoy better safety and manage to retain their status as upscale residential areas for a long time. This is a significant departure from the situation in Japan, where a property’s value does not necessarily decline simply because it is "old."
Yes, that is possible. Please note that for certain documents required for real estate registration, you may need to sign them in the presence of a notary public—for example, at a notary office in Japan.
For other documentation, the process can be handled via email, electronic signature, telephone, or postal mail. Regarding the purchase costs, you may also remit funds from Japan to the escrow account.
Generally, it takes about 30 to 45 days. In cases of cash purchases, the transaction may be completed in a shorter timeframe.
Certainly, that is fine. The key is to choose a reliable real estate company or agent who is well-versed in both Japanese and English, as well as in business practices in both Japan and the United States.
At INDIGO, we offer a support system that includes both English-proficient Japanese agents and highly qualified American staff. We are also available to assist you with property management following your purchase.
Yes, that is possible. If you would like more information about loans for foreign nationals, please feel free to contact us at any time; INDIGO can introduce you to lenders who offer such options.