90% of Sellers Don't Know: 3 Signs to Spot REINS Hoarding
"I put it on the market, but no one is coming to view it"—that silence is no coincidence.
Real estate agents can use a system called REINS to intentionally make your property "invisible."
Having seen the inside of the industry for over 20 years, I am going to tell you the truth today, without holding anything back.
Is your property really "on the market"?
The week after you sign an exclusive brokerage contract, your property information is posted on portal sites.
At first glance, it looks like the sales process is moving forward.
However, there is a major pitfall here.
There are two ways real estate agents sell properties.
Either "sell to another company's buyer" or "sell to their own buyer."
The brokerage fee is capped at 3% of the sale price plus 60,000 yen (excluding tax).
If they can collect from both the seller and the buyer, it becomes a "double-sided brokerage," doubling their commission.
For a 20 million yen property, that is about 660,000 yen for one side, or about 1.32 million yen for both sides.
It is a perfectly natural business motivation for an agent to want to "sell to their own buyer."
The problem is that the seller's interests are sacrificed for that motivation.
What is REINS? The true nature that agents won't explain
REINS is a property information database operated by the Real Estate Information Network System designated by the Minister of Land, Infrastructure, Transport and Tourism.
Agents who sign exclusive or sole exclusive brokerage contracts are required to register the property within 5 to 7 business days of signing.
Agents will say, "We have properly listed it on REINS."
That statement is not a lie. However, registration and public disclosure are two different things.
Even if they register it on REINS, they can effectively exclude other companies by telling them, "We are currently in negotiations" or "The seller has declined the viewing" when they receive inquiries.
This is the true nature of "hoarding."
Even in surveys by the Ministry of Land, Infrastructure, Transport and Tourism, cases of suspected hoarding in exclusive brokerage contracts have been reported, and it exists as an open practice in the industry.
Ministry of Land, Infrastructure, Transport and Tourism: "Survey on Consumer Trends in the Real Estate Distribution Industry")
What happens when hoarding occurs?
The principle of competition disappears, and the selling price drops.
Sellers are led to believe that "the market didn't value the property" and end up agreeing to price reductions.
In reality, it is the result of the agent intentionally excluding competing buyers.
3 signs to spot hoarding
Based on actual consultation cases, here are three common patterns where hoarding is suspected.
■ The zero-viewing period has exceeded 3 weeks — If a studio apartment in Tokyo has zero viewings for 3 weeks at a fair market price, there is a problem with either the pricing or the exposure.
If the price is higher than the market, naturally, there will be no inquiries.
But if the price is fair and there are still no viewings, it is possible that inquiries from other companies are being blocked at the agent level.
There is one action you should take.
Try inquiring about your own property posing as another real estate agent, or have an acquaintance in the industry check how it appears when searched on REINS.
If it shows as "in negotiations" but there have been zero viewings, that is strong evidence of hoarding.
■ The 'price reduction proposal' comes too quickly from the agent — Be wary of cases where a price reduction proposal within 1 month of listing arrives.
In normal sales activities, you first list at a fair price, expose it widely, and consider price adjustments after seeing the response.
A price reduction proposal in less than a month is at a stage where you cannot say it has been 'sufficiently exposed to the market'.
If you agree to a price reduction at this timing, it is easy to fall into a structure where the property is sold cheaply to a buyer the agent has secured for themselves.
In an actual consultation case, there was an instance where a listing price of 18.5 million yen was proposed to be 'lowered to 16 million yen' after one month, and two weeks later, it was closed with the agent's own client.
The 2.5 million yen the seller lost vanished to secure the agent's double-sided brokerage commission.
■ Not showing or being vague about the REINS Registration Certificate — Agents who have signed an exclusive or exclusive-sole brokerage contract have an obligation to issue a REINS Registration Certificate.
(Article 15-9 of the Building Lots and Buildings Transaction Business Act Enforcement Regulations)
When you request this document, agents who mumble things like
'I'll send it later,' 'It's a system issue,' or 'I don't have it on hand right now...'
are highly likely to have not registered it or have issues with the registration details.
The REINS Registration Certificate contains the registration number, registration date, and expiration date.
Once you receive it, make it a habit to immediately check the property information on the REINS public service, 'REINS Market Information'.
NG behaviors sellers fall into and how to avoid them
■ Being tied up for a long time with an 'exclusive' contract — The contract period for exclusive or exclusive-sole brokerage is a maximum of 3 months.
Sellers have the right to review the terms every time it is renewed.
Consultations about 'renewing even though there were no results' are endless.
Request data on the number of viewings and inquiries in writing after 3 months, and if there are no results, consider switching to an open brokerage contract or changing agents.
■ Believing content based only on verbal explanations — 'We are advertising it properly,' 'We are getting inquiries' — verbal explanations are not evidence.
What you should request is:
REINS Registration Certificate (with registration number and registration date specified)
Portal site listing URL and listing date
Written report on the number of inquiries
It is the seller's right to have these submitted in writing once a month.
■ Believing that 'appraisal price = selling price' — The appraisal price is merely the agent's 'estimate of a price that might sell'.
It is not rare for the actual closing price to be 5-15% lower than the appraisal price.
Compare appraisals from multiple agents and request the basis for the appraisal (past closing examples, REINS closing data) as documentation.
Appraisal prices from agents who cannot show their basis are not worth referencing.
What to do first if you suspect hoarding
Pull out your contract and check 'exclusive or open,' 'contract period,' and 'presence of reporting obligations.' This alone will reveal 80% of the situation.
Next, request the issuance of a REINS registration certificate in writing.
The speed and content of their response will serve as a litmus test for the agent's integrity.
If you keep getting slow, vague, or "I'll get back to you later" responses, that is already your answer.
Switching to multiple agents (general brokerage agreement) is the seller's right and can be done at any time if the proper procedures are followed.
(Reference: Ministry of Land, Infrastructure, Transport and Tourism 'Types and Differences of Brokerage Agreements')
Finally—time will not be on your side if you keep staying silent.
I have seen many owners watch a year go by while thinking, "I'll wait and see a little longer."
During that time, repair reserve funds increase, vacancies persist, and only the loan balance remains.
You suspect hoarding. You are not satisfied with the appraisal price.
You don't know if you can sell under a sublease or over-loan situation.
I accept such consultations without phone calls, completely anonymously, and without rushing you.
It is fine to reach out before you have decided to "sell." It is also fine to just organize your situation.
LINE: @874gqomt
Search for "Investment Condo Sale Anonymous Consultation."
Acting on the seller's side. That is my only job.
FAQ - Frequently Asked Questions
Q1. Can I check if my property is registered in REINS myself?
A. You can check transaction information on "REINS Market Information," but for the current listing status, requesting a REINS registration certificate is the most reliable method. Please request it from your agent in writing.
Q2. If I suspect hoarding, can I change agents during the contract?
A. In principle, you cannot cancel during the term of an exclusive or sole exclusive brokerage agreement, but if the agent has failed to fulfill their reporting or REINS registration obligations, it becomes grounds for contract termination.
Q3. Will switching to a general brokerage agreement put me at a disadvantage in sales activities?
A. A general brokerage agreement where multiple agents compete is an effective way to prevent hoarding. If the seller can manage it actively, you can reach a wider range of buyers than with an exclusive agreement.
Q4. How many companies should I ask for an appraisal?
A. At least three. Do not just look at the price; judge the quality of the agent by whether they provide "supporting data (REINS transaction data)."
Q5. If there are zero viewings, what should I check first?
A. The first step is to request three things from your agent in writing: the REINS registration certificate, the portal site listing URL, and the number of inquiries received.