The important thing when looking for a used apartment is not just finding a good property. This includes how to create search conditions, financial planning, confirmation of management status, view during viewing, and repair risks after purchase.
Anyone can simply search for properties on the portal site. However, even if used condominiums are located at the same station and have the same size, the value of used condominiums can vary greatly depending on the status of the management association, repair reserves, age of construction, renovation history, and ease of obtaining a mortgage loan.
In this article, we will explain how to efficiently search for used condominiums and summarize the practical points you should always check before purchasing.
When looking for a used apartment, set your priorities before narrowing down your criteria.
If you narrow down your criteria too closely from the beginning, the number of candidate properties will be extremely small. On the other hand, if you broaden your criteria too much, your comparison axis will become blurred, and you'll end up seeing too many previews, making it difficult to make decisions.
First, please divide your desired conditions into three categories.
| Classification | Examples | Concept of judgment |
|---|---|---|
| Required conditions | Upper budget limit, commuting time, minimum area, school district | Properties that do not meet the requirements will be rejected |
| Adjustment conditions | Building age, number of floors, direction, walking distance from station | Determine based on balance with price |
| Conditions that would be nice to have | View, delivery box, renovated | Consider whether it is necessary to raise the price |
Used apartments are one-of-a-kind. Rather than waiting for the perfect property, it is more realistic to choose a property that meets non-negotiable conditions and for which you can understand the risks.
Differentiate between portal site and real estate agency
When looking for a used condominium, the basics are to use both portal sites and real estate companies. Each has a different role.
Get a feel for the market with the portal site
On portal sites such as SUUMO, LIFULL HOME'S, and At Home, you can search by area, price, area, year of construction, walk from station, and floor plan. First, search multiple sites for the same conditions to get a feel for market prices.
The point to look at is not just the number of publications. Look to see if the same property is listed by multiple companies, hasn't been listed for a long time, or has its price revised. Properties that have remained unsold for a long time may have reasons related to price, management, location, or rights.
Check detailed information with real estate company
There is information that is difficult to see on the portal site. Management association minutes, long-term repair plans, revision plans for repair reserves, past water leaks, the seller's circumstances, room for price negotiation, etc.
When consulting with a real estate company, instead of saying, ``Please let me know if you have any good properties,'' tell them your desired conditions and the basis for your decision.
- Budget limit and self-funding
- Mortgage loan pre-screening status
- Desired area and acceptable stations
- Upper limit on building age
- Is it a prerequisite for remodeling or moving in?
- Should you focus on management status or price?
The ability of the person in charge can be judged by whether they can explain the reason for not showing up, rather than the number of property introductions.
Look at your budget based on the total amount, not the purchase price
When purchasing a used condominium, it is dangerous to base your budget solely on the price of the property. Consider including various costs at the time of purchase, renovation costs, moving costs, and monthly costs after purchase.
| Cost | Contents | Notes |
|---|---|---|
| Brokerage fee | Compensation to real estate company | Check the upper limit in advance |
| Registration costs | Transfer of ownership and mortgage setting | Including judicial scrivener fees |
| Loan costs | Administrative fees, guarantee fees, stamp tax | Varies widely depending on financial institution |
| Fire insurance | Building/home contents/earthquake insurance | Check coverage |
| Renovation costs | Interior/equipment replacement | Judgment based on property price |
| Management expenses/repair reserve fund | Monthly running expenses | See possibility of future increase |
| Fixed asset tax | Occurs every year | Check the settlement amount |
The amount you can borrow for a home loan is not the maximum you can afford. Please make sure that you can afford to live even with management fees, repair reserves, fixed asset taxes, and future repair costs.
Look at the “management condition” rather than the age of the building
When it comes to second-hand condominiums, it's best not to judge the quality of the property based solely on its age. There are some older condominiums that are well-managed and have a functioning repair plan. On the other hand, even if the property is new, you should be careful about properties with too low repair reserves or poorly managed management associations.
The documents you would like to check are as follows.
| Materials | Points to see |
|---|---|
| Important matters investigation report | Management expenses/repair reserves, delinquency, management method |
| Long-term repair plan | Large-scale repair schedule and financial plan |
| General meeting minutes | Repairs, troubles, and management association discussions |
| Management Terms and Usage Rules | Pets, Private Lodging, Office Usage, Parking |
| Repair history | Exterior walls, rooftop waterproofing, water supply and drainage pipes, elevators |
In particular, properties with extremely low repair reserves compared to surrounding properties may require a significant price increase or lump-sum payment in the future. A lower monthly fee is not necessarily an advantage.
Points to see during the preview
During the preview, we not only get an impression of the interior, but also look at the common areas and the state of management. The value of a used condominium is not determined solely by the private area.
Exclusive section
- Are there any signs of rain or water leakage on the walls or ceiling?
- Is there any condensation or mold around the windows?
- Is the floor tilted or sinking?
- Year of water heater, air conditioner, and ventilation equipment
- Areas that need to be replaced during renovation
- Balcony drainage condition
Common area
- Cleanliness of the entrance, hallway, and trash area
- Are there too many warnings on the bulletin board?
- How to use bicycle parking lots and parking lots
- Deterioration of outer walls and iron parts
- Is there a security camera/auto lock?
- Manager's working status
The common areas reflect the manners of the residents as a whole and the management company's work performance. Even if you renovate only the interior, if the common areas give a bad impression, it will affect the property value and evaluation at the time of sale.
Things to check in old earthquake-resistant/old condominiums
Buildings that received construction approval before June 1981 may be built to older earthquake resistance standards. This does not mean that all old earthquake-resistant apartments are dangerous, but it does affect mortgages, insurance, future sales, and whether or not earthquake resistance inspections are required.
When considering old earthquake-resistant or older properties, please check the following:
- Whether seismic diagnosis is conducted
- Is seismic reinforcement implemented?
- History of major repairs
- Update status of water supply and drainage pipes
- Balance of repair reserve fund
- Availability of financing from financial institutions
- Buyer demographic when selling in the future
If you can understand why the prices are low, there are options for older properties. However, if you choose based solely on the price, you may regret it due to repair costs, difficulty in selling, and difficulty in financing.
Final check before purchase application
When you find a property you like, check the following items before making a purchase application.
- Will you pass the pre-approval for a mortgage loan?
- Status of nonpayment of management fees and repair reserve funds
- Long-term repair plan and repair reserve fund revision schedule
- Total budget including renovation costs
- Scope of seller's liability for non-conformity
- Delivery period and move-in period
- Demand when selling in the future
Speed is important when purchasing, but there is no need to apply without checking the required documents. The better the property, the faster you need to move, but in order to move, you need to prepare in advance.
I also want to read
- Flow of selling a used condominium | 6 steps from appraisal to brokerage contract, delivery, and final tax return
- Explaining the process of buying an apartment in 3 steps | Procedures and precautions that beginners should know
- What is a condominium? A thorough comparison of the differences, advantages, and disadvantages with rental apartments
Frequently asked questions
Q. Is it enough to search for used apartments online?
Although it is useful for understanding the market price, you cannot find out management information, room for price negotiation, and the seller's circumstances just by looking at the internet. It is realistic to combine a portal search with detailed confirmation from a real estate company.
Q. Should I avoid old earthquake-resistant apartments?
There is no need to avoid it altogether. However, please make a decision after checking the seismic diagnosis and reinforcement, management status, availability of financing, and potential buyers when selling in the future.
Q. Are renovated properties safe?
Even if the interior is clean, the condition of the common areas, plumbing, and management association is another matter. Don't just look at the appearance, check the repair history and management documents.
Q. Should I submit a purchase request early?
Speed is important for popular properties. However, it is dangerous to apply without checking the financial plan and management materials. It is important to complete the preliminary screening and sort out your desired conditions first.
