The "空き家バンク" is a strong option when considering how to use or sell a vacant house. This article explains how the system actually works, along with its advantages and disadvantages, for real estate owners and investors.
What kind of system is the "空き家バンク"?
The "空き家バンク" is a system through which local governments provide information on vacant properties to people interested in relocation or regional exchange, typically through their websites and similar channels.Some municipalities operate it directly, while others outsource operations to contractors.
Owners who want to sell or lease a property register its details, and people who want to buy or rent can apply based on that information. The system itself has existed for more than 20 years, and in recent years it has spread nationwide as demand for relocation and regional exchange has grown.
Advantages of using the "空き家バンク"
No brokerage fee applies, or costs stay low
Because sales and lease agreements can be concluded without going through a real estate company, standard brokerage fees typically do not apply, which can significantly reduce costs.Please also refer to this detailed explanation of intermediary fee structures.
Public listing can make it easier to find buyers and tenants
Even properties in remote or rural areas without local real estate companies can be promoted nationwide on a website. One key advantage is that the information is more likely to reach people considering relocation or those looking to repurpose a traditional house as a cafe or similar venture.
Municipal subsidy programs may be available
Some municipalities offer their own subsidy programs, such as partial support for renovation and repair costs.Details and conditions vary by municipality, so advance confirmation is necessary.
Disadvantages and points to watch when using the "空き家バンク"
Risk of problems in the sales process
Because the process does not involve licensed real estate professionals, problems are more likely to arise during the sales procedure.If issues occur in negotiations, contract preparation, or registration, you may need to separately arrange support from a judicial scrivener or lawyer, which can ultimately increase both cost and effort.
Property viewings and guidance are generally handled by the owner
Because no real estate company is involved, the owner generally needs to personally guide prospective buyers during viewings. If the owner lives far away, transportation and related costs will also arise.
It is not available in every municipality
More than 600 municipalities nationwide participate in the "空き家バンク," but some municipalities have not adopted the system.It cannot be used outside eligible areas.
The risk of leaving a vacant house unattended and the importance of selling early
If a vacant house is left unattended, fixed asset tax and city planning tax continue to accrue. In addition, if it is designated as a "specified vacant house," the residential land special tax treatment for fixed asset tax (a one-sixth reduction) is removed, and the tax burden can increase by as much as six times. Risk management for laws and regulations related to real estate is also important.
Recommended related reading
- Avoid losing money when selling real estate: how to spot position-driven sales talk from intermediaries
- Real estate exit strategies in an era of inflation and rising construction costs
- What is real estate purchase-and-resale? An expert guide to the differences from brokerage, including the advantages and disadvantages
Frequently Asked Questions (FAQ)
Q1. If I register with the "空き家バンク," will the property definitely sell?
Not necessarily. The likelihood of closing a deal varies significantly depending on the property's location, condition, and pricing. Even so, the system can make it easier for purchase inquiries to reach rural properties that are otherwise difficult to circulate through the standard real estate market.
Q2. Who handles the sales procedures through the "空き家バンク"?
As a general rule, the seller handles the negotiations and procedures directly. However, we strongly recommend asking a judicial scrivener or lawyer to handle the contract documents and registration.
Q3. Are there ways to sell a property without using the "空き家バンク"?
Yes. Options include listing with a real estate company, requesting a direct purchase offer (which allows immediate cash conversion), and using auctions. It is sensible to consider multiple options alongside the "空き家バンク."
Q4. Is there a fee to register with the "空き家バンク"?
In many municipalities, registration is free. However, some municipalities may charge certain administrative fees.
Q5. Can I sell an inherited vacant rural house through the "空き家バンク"?
Yes. For vacant houses in rural areas, the "空き家バンク" is one of the most effective sales channels. Demand for relocation and traditional house revitalization is rising, making it possible to reach buyer segments that are difficult to find in urban markets. If farmland is included with the property, procedures under the Farmland Act will also be required.
