Selling an old or run-down house in Tomakomai | How the building is valued, whether to demolish, contract non-conformity liability, and using a direct purchase
Owners of old houses often wonder, “Will it sell for anything?” or “Should I tear it down before selling?” In reality, even if the building has little value, the house can often sell for the value of the land, and selling without demolition is sometimes the better choice. This article explains how buildings are evaluated when you sell an old or run-down house in Tomakomai, contract non-conformity liability, and how to decide whether to demolish.
How old houses are valued
The building value of a wooden house generally approaches zero after about 20 to 25 years, so the sale price is based mainly on the value of the land. However, this does not mean that the building is worth nothing. If it is in good condition, a buyer who wants to live there after renovation, or a buyer who wants to rent it out, may be found.
| Point to check | How it is viewed |
|---|---|
| Year of construction (June 1981 or later?) | Buildings with a building permit from this date onward follow the new earthquake resistance standards. For older houses, earthquake resistance is more likely to be questioned |
| Roof leaks, tilting, termites | Major defects lower the purchase price, or the property is valued as land only |
| Cold-climate specifications (insulation, heating, hot water) | In Tomakomai, how comfortable the house is in winter is part of the buyer’s decision |
| Shape of the land, road access | Even if the building is old, the property can sell if the land conditions are good |
Do not decide that the house has no value just because of its age. First get an appraisal and ask how the land and the building are each valued.
Demolish and sell, or sell as it is?
| Sell as it is | Demolish and sell as a vacant lot | |
|---|---|---|
| Cost | No cost to the seller | Demolition costs |
| Property tax | The residential land special measure continues | The special measure is removed, and the tax on the land goes up until it sells |
| Buyers | Individuals who want to renovate, and direct purchase by real estate companies | Individuals who want to build a new house |
| Suitable when | The building can still be used, or you do not want to pay demolition costs up front | There is a risk of collapse, and selling as land is more advantageous |
The basic rule is to demolish only after the buyer is decided. If you clear the land first, the tax burden increases while it does not sell, and Tomakomai City’s demolition subsidy may also require you to apply before the work starts. This is explained in detail in “Can property tax on a neglected vacant house in Tomakomai rise up to six times?“. Check the latest conditions for the subsidy on the “vacant house demolition subsidy” page.
“Contract non-conformity liability” always comes up when selling an old house
If the house you sold has a defect that does not match the contract, under the Civil Code the buyer can demand repair, a price reduction or other remedies, as long as the buyer notifies the seller within 1 year of learning of the defect (Civil Code Article 566). When the seller is an individual, the contract can shorten the period of this liability or exclude it. For old houses, deal with it as follows.
- Disclose defects honestly: record in writing what you know about the history of roof leaks, damage from frozen water pipes and termite damage. You may be held liable for defects you did not disclose, even if there is a special clause excluding liability.
- Limit the period: the contract can limit the period of liability, for example to “3 months after handover”.
- Choose a direct purchase: if a real estate company buys the house directly, it will often take it as it is and exclude liability, so you do not need to worry about claims after handover.
Should you use a building condition survey (inspection)?
When a real estate company signs a brokerage contract for a sale, it must state in writing whether it can refer you to a company that carries out building condition surveys (Real Estate Brokerage Act Article 34-2). A survey makes the condition of the building visible, which reassures buyers and reduces trouble after handover. However, it costs money, and the results may be bad. If you are in a hurry to sell, or you choose a direct purchase, it is often not necessary.
Steps if the house is hard to sell
- Advertise through brokerage, and get a direct purchase appraisal at the same time
- If there is no response in about 3 months, review the price or switch to a direct purchase
- If you inherited a house built on or before 31 May 1981, check whether you can use the ¥30 million special deduction for vacant houses (Selling an inherited house in Tomakomai)
- Also consider registering with the Hokkaido Vacant House Information Bank (Selling, renting out or demolishing a vacant house in Tomakomai)
What we can do
Banana House Inc. (1-1-1 Honkocho, Tomakomai) handles appraisal, brokerage and direct purchase of old houses and houses with roof leaks or tilting. We can also buy the house as it is, without you paying for demolition. The overall selling process and costs are explained in “Selling real estate in Tomakomai“. To apply, just give us three things: the type of property, its location and your contact details.
This page was machine-translated. The Japanese original prevails.
Frequently asked questions
Can a 40-year-old house be sold?
Yes. The building value will be small, but it can often sell for the value of the land, and a real estate company can buy it directly as it is. First get an appraisal and check how the land and the building are each valued.
Should I tear down an old house before selling it?
We do not recommend demolishing before the buyer is decided. A vacant lot loses the residential land special measure, and the property tax goes up until it sells. Unless there is a risk of collapse, get an appraisal of the house as it is before deciding.
What is contract non-conformity liability?
It is a system that lets the buyer demand repair, a price reduction or other remedies from the seller when the house sold has a defect that does not match the contract. The buyer must notify the seller within 1 year of learning of the defect. When the seller is an individual, the contract can shorten the period or exclude liability, but if you hide a defect you knew about, you will be held liable.
Can I sell a house with roof leaks or termite damage?
Yes. The realistic approach is to disclose the defects honestly and choose a direct purchase as it is. If you plan to repair before selling, compare the repair quote with the appraisal value without repairs.
Consultations on selling and vacant houses are free
We can start a valuation with just three things: the property type, its location and your contact details. You do not need to have decided to sell yet.
Banana House Inc., 1-1-1 Honkocho, Tomakomai. We never use pushy sales. Please write in English or Japanese.
Sources and data
- Data retrieved: 2026-10-10. All prices are official public data and do not include our own estimates.
Yuki Nakazawa (President, Banana House Inc.) reviewed the Japanese original of this article. As a licensed real estate broker, we follow the Japanese rules for real estate advertising.
