Market Value usage notes:
The market values listed for apartments, homes, and land provided on this service are based on data from actual past transactions (that concluded in a contract). The year of construction, the distance from the nearest train station, and the area are treated as explanatory variables for a regression analysis that yields a calculation of market value.
These explanatory variables are widely known as key variables that determine the price of real estate. The market values derived therefrom are, therefore, reliable values that reflect actual market value.
However, the calculations used for actual standalone properties are calculated based on a range of other factors like orientation, whether or not the property has been upgraded, the surrounding environs, et cetera. Therefore, please be aware that the market value provided on this service may be lacking in some respects.
In addition, certain locations, rail lines, and train stations may have few past cases of real estate being traded there, so there may not be sufficient data points for a calculation of market value. Note that we cannot provide an accurate price for said values.
All price data provided on Utinokati is based on actual traded values (transactions that concluded in a contract). For this reason, market values reflected herein will often be 5-10% lower than those listed on real estate agencies’ web sites (the sale price). This is because the actual prices at which domestic real estate is traded in central Tokyo, the Kinki region, and the Chubu area are respectively 6%, 8%, and 10% lower than the sale price. In other words, properties are ultimately traded at a discount on the original sale price.
In addition, actual prices are widely affected by the economy, consumption tax, and government policy. In addition, they are affected in more subtle ways by the various conditions of the buyer and seller (urgency to sell, urgency to buy, et cetera), so there may be cases where a property is traded for a price that is not explained by past data.
Please keep the above in mind when using the service.