THE SELLER'S GUIDE
Selling your property in France requires a lot of work. There are different steps in the process, including obtaining an estimate, conducting mandatory surveys, collecting important documents, marketing the location, presenting to potential buyers, accepting an offer to purchase, signing contracts, and paying capital gains tax. Let this guide walk you through it all step by step.
- Estimate your property / The estimate of the selling price
Make your estimate either even by doing a market analysis or ask a real estate expert.
Then, you will have to set your selling price according to the value of your property.
To estimate the price, you need to look for real estate agents nearby.
Some estimates will help you determine what the selling price of your property will be. By contacting the agents, you can also find out about their responsiveness and professionalism. After analyzing the properties sold in your home or neighborhood and studying the estimates of real estate agents, you can set your price.
You can also do it yourself :
1. Consult the properties sold, it is the request for land value (Request for Land Value DVF)
2. consult the properties currently for sale similar (Seloger, beautiful houses, le figaro immobilier)
Namely that the ads talk about agency fees included (FAI price).
Making your own estimate can be risky because you can over- or undervalue your property and this can consequently cause difficulties in selling. An estimate at the right price is the key to selling your property quickly.
2.Build your sales file
Conducting mandatory surveys, known as the “Dossier de Diagnostic Technique” (DDT) in French, is a legal requirement when selling your property in France. It ensures that your place is in the right state for sale, examining all the possible safety and health risks that may affect or even harm the buyer. And since this is required by law, only a professional diagnostician can carry out these surveys. More often than not, your real estate agent or notary can recommend you one.
The Dossier de Diagnostic Technique (DDT) includes tests that examine the following:
- Energy Efficiency
- Electrical Wiring and Gas Installations
- Natural or Industrial Risks
- Lead & Asbestos
- Termites
- Septic Tanks (if Applicable)
- Swimming Pool Security (if applicable)
The surveys conducted in your place will depend on what kind of property it is. These factors include whether you rent it out or not, if it's a unit in a condominium building, or if it's a detached house.
Gather The Important Documents
Selling your property in France is as much of a legal process as it is a financial transaction. Because of this, the process will require a few important documents before you can proceed with the sale.
Reclaiming The Title Deed
The first and arguably the most important document is the title deed. It's proof that you are, in fact, the registered owner of the property and have the right to sell it. Fortunately, it's pretty easy to reclaim the title deed of your property. You can ask your notary to do it or send in a request to your local Land Registration Service. They'll simply ask you to fill up a form and pay a fee of around €6.00 to €30.00 depending on the document. Properties purchased before 1956 will likely cost more to reclaim.
The Co-Ownership Documents
If your property is a unit in a condominium building, you and the Syndic de Copropriété (Homeowners Association) basically share responsibility over it. In some countries, including France, a Syndic de Copropriété serves as the representative for all property owners in managing the condominium building. And if you want to sell your unit, you have to recover certain documents from them.
The first is the minutes from the last three annual Co-Ownership General Meetings. It's usually a summary of all that has been discussed in the meeting, not the least of which are the important decisions made in regard to maintaining and/or improving the building. This document should be signed by the president of the syndic, the secretary, and the scrutineer (the one in charge of elections of the syndic). At times, you may be asked a fee to request it.
The second is the co-ownership regulations. Provided by the syndic, this is given to all co-owners upon purchase of a unit in the condominium building. In case you've lost yours, you can either ask for a copy from a co-owner or request one from the syndic directly. The latter, however, may ask for a fee upon your request. And if all else fails, you can go directly to your local Land Registration Service and ask for a copy there. This will cost you around €30.00 and the form will differ depending on whether its date of registration is before or after 1956.
The Property Taxes
You can recover your last property tax with the help of your notary or by calling the hotline 0-809-401-401
3.Do Some Marketing
To hire a real estate agent to help market and sell your property, you need to sign a sale mandate first. This is a bilateral contract that establishes the partnership between the seller—owner of the property—and the real estate agent for the sale. The document should include:
- The identity of the person/s selling the property
- References & contact details of the real estate agency in charge of the sale
- Designation of the property
- Price of the property
- Agreed prices on agent fees
- Schedule of the sale
- The means of the real estate agent (and their agency if applicable) of making commercial advertisements for the property
Viewing Parties
Whether you hired a real estate agent or not, setting up viewing parties when selling your property is a must! More often than not, buyers insist on seeing the place in person before they decide to purchase it. As it is a big transaction with lots of money involved, it's only right that they see the property in real life to double-check whether they find it a worthy investment.
In this regard, you'd do well to spruce your place up before the viewing parties begin. Conduct the needed renovations and do some heavy cleaning to ensure that everything looks impeccable. If you can, hire an interior decorator to improve the look and aesthetics of the place. There's no end to what you can do to make the property look more desirable. Oftentimes, this will even help increase the value too.
Professional Photos
Photos are essential in marketing your property, both online and through publishing. Therefore, the best way to go about it is to hire professional photographers to capture your property in the best light. The higher the quality of the images, the more attractive they'll look to potential buyers.
3D Virtual Tour
A new and exciting feature in marketing your property is a 3D virtual tour. This allows potential buyers to look through and examine the property thoroughly, often including details that professional photos failed to show or highlight. It's especially helpful for buyers who are unable to visit the property in person. As seeing the place in real life is a vital part of buying properties—often the deciding factor in going through with the purchase—a 3D virtual tour serves as a good alternative to that.
Still, it's important to remember that virtual tours can't replace physical visits. So don't forget to set up viewing parties for your property when you're selling it.
Writing an Advertisement
Professional photos and 3D virtual tours are all well and good but never forget written advertisements as well. Images can only do so much in giving accurate information about the property. Many buyers still rely on written advertisements in understanding what the property is all about and its true and current state. Some won't even pay attention to available real estate if there's no written advertisement included.
4. Give a tour of the property
Consider some small restoration work before visiting (painting preferably white walls, bathroom seals, sockets and switch, fixtures in good condition)
When you start the process of selling your property it is appropriate to do some small work that will then be an added value. A little paint, plugging a hole, putting new bulbs ... are small easy and not necessarily expensive gestures that will be positive points later during visits.
Highlight your apartment at each visit (Tidy, clean, ventilate, create a warm atmosphere, optimize space, remove bulky objects)
To highlight your property well is to promote the crush of the potential buyer. For this, it is essential that the property is as clear as possible and that we perceive the surfaces and volumes as well as possible. This is why the experts will recommend that you store well, remove objects or furniture that are not necessary to ventilate all the rooms so that the property is as welcoming as possible. It is also important for the photos that will be taken and the virtual tour if you make this choice, everything must be tidied up and nothing drags so that the camera can capture everything without worries.
Show a 3D virtual tour each time before physically visiting to gain efficiency
To maximize your chances of selling your property quickly, professionals always recommend tidying up your home. However, it is not always easy to keep the apartment or house in perfect condition or even as in decoration magazines. Sellers are sometimes forced to leave their residence during a visit.
By choosing the virtual tour, you ensure that both the seller and the buyer save a lot of time. We know that the visits for the property will be made only because the buyer has already appreciated the property on the visit so he just wants to confirm his feelings.
The use of an exclusive mandate is also realized during your contract with your agency that allows you to obtain the images and have a right of inspection on them.
5. Accept an offer to purchase
Real estate negotiation is common and it depends on the number of defects in the apartment
When you visited this accommodation in which you are already projecting, perhaps you did not perceive all its defects? Because against all odds, it is clear that some defects are sometimes good. Especially when they can allow you to argue and plead in favor of a decrease in the selling price of a property with imperfections. To maximize your chances of identifying the defects of the housing (and being able to use them to your advantage during the negotiation), do not hesitate to visit the property several times, to open your eyes and to make a list of all the elements that can support your request for negotiation. It may, for example, be work to be done, a boiler that is too old that will have to be replaced or insulation that leaves something to be desired.
When the seller accepts the offer to purchase
The tender offer must be in writing and include the following :
The date, the designation of the property, the price and the validity period 1 to 2 weeks.
During the period of validity of the offer, the seller has several possibilities:
He can accept the conditions of the offer of the proposed acquirer
He may refuse the offer if the price proposed by the proposed acquirer is lower than that initially fixed
He can make a written counter-proposal, i.e. a new offer that renders the initial offer null and void.
If the seller accepts the conditions of the offer, the proposed buyer is engaged. A promise of sale or, if not, a deed of sale is then signed.
6. Signing of the Promise to Sell
The signature is done at a notary, face-to-face or by giving power of attorney
When you sign a promise of sale or a sales agreement, the buyer will be entitled to a withdrawal period of 10 calendar days.
To do so you must send by registered letter with an acknowledgment of receipt from the day after signing within 10 days (SRU law which proposed a period of 7 days, but since the Macron law it is within 10 days). This delay is essential because it allows you not to have to justify yourself and also avoid financial penalties.
You can retrieve a model letter of withdrawal of promise of sale. You can also ask your notary for assistance regarding your withdrawal request.
In the event that you do not wish to retract, the period between the promise of sale and the authentic deed is generally 3 months.
It is customary to show the property to the buyer before signing
This visit is quite symbolic, it is often called the courtesy visit. This is the last visit before purchase. This visit is absolutely not mandatory, but it is strongly recommended by real estate experts.
However, the purpose of the courtesy visit is, within the 3 months in question, to check the condition of the accommodation. In addition, it allows you to see whether or not the previous owner has left the dwelling. Thus, the future buyer ensures that the property he is about to acquire corresponds to the one he has committed to buy. It is a kind of inventory during which the buyer verifies that the seller has respected his commitments.
Signature at the notary, delivery of the keys
The signing of the deed of sale at the notary marks the long-awaited moment of the transfer of ownership. In most cases, this also means that the purchaser receives the keys and enters into enjoyment of the property. That said, nothing prevents both parties from anticipating or postponing the handing over of the keys after signing the deed of sale, if the seller wishes to stay in the accommodation for some time. This article provides an update on the modalities and risks associated with this practice.
Calculation of real estate capital gains
The real estate capital gain is equal to the difference between the sale price and the purchase price or declared value, when the property was received by gift or inheritance. Before selling, it is better to know precisely the fate that will be reserved for its real estate capital gains. Indeed, the capital gain realized on the sale of a property may be subject to income tax and social security contributions. However, some assignments may fall within the scope of an exemption.