We live in a convenient age where, if you have something you don’t understand or a question, you can quickly look it up using the internet.
Furthermore, even if you’re not good at reading text or don’t have much time, you can easily search for information through social media platforms.
Facebook, X (formerly Twitter), TikTok, YouTube, and Instagram are some of the representative tools.
While there are many ways to gather information nowadays, it is important to be cautious about the information provided.
In particular, information found on the internet is not scrutinized by publishers as with books or official publications, so whether the information is accurate ultimately depends on the judgment of the person viewing it.
We generally want to believe most people provide correct information, but in reality, there is a lot of misinformation and false information out there.
Without specialized knowledge, it is difficult to distinguish truth from falsehood in this mixed environment.
Recently, newspaper subscription rates have declined, and the mainstream medium for real estate advertising has shifted from print to online ads.
Among these, advertising via social media has become increasingly common.
Not only companies but also individuals use social media to circulate information.
For example, if you search “real estate purchase” on YouTube or Instagram, you will find many similarly titled videos such as “Important Points to Watch Out for from Real Estate Professionals,” “Secrets of Real Estate Investment,” and “Tips for Buying a Used Home.”
Most of these contain a LINE contact (or some form of action) in their profiles to invite people into membership salons.
This is one method of securing clients, which in itself is not problematic.
In fact, it is a reasonable method as part of advertising.
However, the issue lies with the information provided by those called “real estate influencers.”
If a salon is hosted by licensed real estate agents, the information provided is regulated under the Real Estate Transaction Business Act, ensuring a certain level of reliability.
However, information provided by unlicensed influencers is not subject to such regulations, so caution is necessary.
Many might wonder, “Isn’t it a violation of the Real Estate Transaction Business Act for unlicensed people to provide property information?”
Article 2, Paragraph 2 of the Act defines real estate business as “conducting sales or exchanges of land or buildings (including parts of buildings) or acting as an agent or intermediary in such transactions, as a business.”
In other words, simply providing information without acting as an intermediary does not clearly qualify as “conducting business,” making it difficult to definitively judge.
In fact, I was once consulted by someone who said, “I think the property introduced by influencer so and so is a great deal, but what do you think from an expert’s perspective?”

That property was a condominium over 45 years old, self-managed, and the reserve fund for repairs did not comply with the Ministry of Land, Infrastructure, Transport and Tourism’s “Guidelines on Condominium Repair Reserve Funds.”
Because of this, it was judged that there would likely be a shortage of funds for major repairs, possibly resulting in a large special assessment.
Also, since it was self-managed, there were concerns about the state of cleaning and maintenance.
The price was low and the location was convenient, so it might appear to an amateur buyer as a good deal.
However, from a professional viewpoint, such a property carries too much risk and should not be purchased without serious caution and consideration.

Nevertheless, the influencer emphasized only the merits of the property via LINE and did not explain any of these risks.
Unlicensed influencers mainly earn income through referral fees, but I am very concerned about the future of clients who enter contracts without receiving appropriate information.

The truth cannot be accepted

People generally don’t want to hear unpleasant truths.

Few would be pleased to be told, “There’s a problem,” about a property they’re considering buying.

However, real estate professionals have a responsibility to clearly explain any risks that may be of concern. This is known as the “duty to disclose important matters that could influence the customer’s decision.”

That said, outside of the official disclosure process (such as during the explanation of important matters), how thoroughly risks are explained during property viewings or negotiations often depends on the agent’s knowledge, integrity, and whether any prior research was done.

For example, noise problems are a frequent issue in condominiums and rental apartments. Unless the agent directly interviews the seller or the property management company, they may not be aware of any existing issues.

As a result, when a customer asks, “Are there any noise problems?” it’s all too common for agents to respond, “I haven’t heard of any,” without verifying the facts—only for noise issues to arise after the buyer moves in.

Determining whether noise levels exceed socially acceptable limits requires checking the time of day the noise occurs and measuring its intensity. This type of investigation isn’t mandatory and is not legally required of real estate agents. However, at the very least, they should conduct interviews in advance. Problems often arise when they give careless answers without doing so.

This doesn’t apply just to noise. Risks such as flood damage indicated on hazard maps, the presence of undesirable facilities nearby, psychological stigmas, or the actual condition of the property all require proper investigation before any judgments can be made.

However, in co-brokerage situations, unless the primary listing agent provides such information, the amount of detail available to the salesperson may be limited. Even so, experienced sales professionals can often anticipate potential issues from the listing documents or a walkthrough and alert the client after conducting their own research.

On the other hand, the way influencers provide information is fundamentally different.

They do not disclose risks or unpleasant details. Instead, they offer only the kind of information that leads customers to mistakenly believe that a property is excellent. This kind of biased information sharing is extremely dangerous for the customer.

However, many customers who are led to private online groups or “salons” via social media tend to place strong trust in the influencer. As a result, even when real problems with a property are pointed out to them, they often refuse to accept it.

Ironically, when the truth or potential risks are pointed out, professionals are often dismissed or avoided.

Be Careful with Stealth Marketing Disclosures

On October 1, 2023 (Reiwa 5), “stealth marketing disclosures”—cases where it is difficult for general consumers to recognize that a post or content is presented by a business—were officially designated by Prime Minister Kishida under Article 5, Item 3 of the Act against Unjustifiable Premiums and Misleading Representations (the Premiums and Representations Act).

This designation is what is commonly referred to as the “stealth marketing regulation.”

Since advertisements are inherently meant to promote products or services, a certain degree of exaggeration or hyperbole is inevitable. Consumers generally understand this when viewing traditional ads.

However, when consumers are guided to join a paid community (such as a membership salon) through social media content that doesn’t appear to be an ad, they do not interpret it in the same way. They are more likely to believe that an influencer with apparent expertise and insight is sharing genuinely helpful property information in good faith.

Under the Fair Competition Code for Real Estate Advertising, businesses are required to clearly indicate when something is an advertisement—this includes using noticeable placement, font size, and color (Article 14). The code also prohibits misleading dual pricing, requires proper comparison ads, and mandates clear disclosure of the nature of the transaction. Violations can result in penalties of up to 5 million yen.

However, this code is a set of voluntary rules established by the Real Estate Fair Trade Council and applies only to licensed real estate businesses. It does not apply to unlicensed or uncertified influencers.

As a result, it’s common to see property images or videos on social media that have been altered with wide-angle lenses or heavy editing, misrepresenting the actual appearance of the property. In some cases, essential information that would typically be required by licensed agents is entirely omitted.

Additionally, there are cases where influencers name themselves things like “XX Real Estate,” despite not being a licensed businesses. This can mislead consumers into thinking the information is coming from a legitimate real estate firm, which could potentially violate the Unfair Competition Prevention Act.

Beyond that, misleading representations that lead consumers to believe a property is more favorable than it actually is are prohibited under the Premiums and Representations Act. Moreover, depending on the type of advice given within a salon, the influencer may be engaging in conduct that violates the Real Estate Brokerage Act or even the Attorney Act.

Real Estate Agents Must Also Be Cautious with Social Media Advertising

It is important to caution clients not to be misled by influencers, but real estate companies themselves must also be careful when advertising on social media.

Social media advertising is highly effective, and many real estate professionals actively use it. However, when disseminating information, extreme caution is required.

Original Article: 【物件担保評価の基本と築年数の影響】査定時に考慮したいポイント

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