Avoid mistakes. Understand how the French real estate buying process works with ESREA France
French real estate pricing is very localized.
Even inside a town or village certain amenities, certain proximity and certain construction can change the value of a property.
However, sometimes looking at the historical trends in French real estate can be valuable.
We recommend you take a moment and look at this Housing price data on French real estate market trends brought to you by the government of France. Details in English.
If you are looking to buy French real estate we have 20 excellent tips for you.
Yesterday we published the first ten, today we have 11 to 20 for you.
Number Eleven
Get Taxing Advice
If you are going to rent out your French property when you are not present make sure you know the tax implications.
Number Twelve
Get Legal Advice
Before you buy so you know the legal implications if you do.
Number Thirteen
Buy without Renting
If your French property is your secondary residence make sure your secondary residence is affordable without you renting out the property. This is because you may not always be able to find renters and this lack of renting may force you to sell your dream property at a loss.
Number Fourteen
Use your own Notary
At the present time you are entitled to have your own notary in a French property transaction. Do not believe the owners or the owner’s agent that you are obliged to use their notary. You as the buyer pay the notary fees and the cost is not reduced if you use the seller’s notary. The fee is simply shared between both your notary and the seller’s notary.
Note: There are English speaking notary’s available in France. Visit here
Number Fifteen
Have your Property Inspected
You may think all is well with your French property when you see the diagnostics but the diagnostics will not tell you if the roof is leaking, if the plumbing is old etc. Consider hiring an inspector to teach you all about the ‘up and downs’ of the property you are considering to buy.
Number Sixteen
Check your telephone and internet
Make sure you do not rely on the owner’s word that the phone or internet connection is good. One person told us recently that the owner said there is internet access to the home but she just did not use it. In fact, the buyer found out their new property had no internet access and they need to rent a more expensive satellite connection.
Number Seventeen
Get Professional Work Estimates before you sign
If you are buying a property that contains, for example, asbestos (amiante) make sure you have a professional estimate on the cost of removal it could be a lot more than you have budgeted for. Also, any electrical or other renovation work needs to have an estimate done before you buy so you are not guessing at the cost. Get more than one professionals estimate on each repair so you can get a better estimate of costs.
Number Eighteen
Know the Cost of Moving
Whether you are moving just across France, across the channel or across the world to your new French property make sure you have budget for the cost of moving. A move in France can be costly.
Number Nineteen
Know your Long Term Plan
If you plan on buying a French property and using it for only a few years and then reselling it make sure you look at the overall cost. If you are just going to use the property for a few years during a summer vacation it may be cheaper to rent than buy.
Number Twenty
Learn Some French Language Freely
Your time in France will be much more enjoyable when you have a few basic phrases or more of French. There are several excellent application that are free that can help you learn French check out Duolingo.com
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Learn faster: 110 Tips for French property Buyers – How to get the best price on French real estate
We can also help locate an English speaking French real estate agent in your area of choice in France. Go here for details.
We have had a meeting with the French real estate agents we know and we asked them for their best advice to help create happy French property buyers.
We looked at all the responses and now offer you the top twenty tips.
This is part one with tips one to ten. Tomorrow you will have part two.
Number One
Know where you like
We know France is a beautiful country and its beauty varies region by region. The diversity can make it difficult for some people to decide. Some people love the buzz and activity of Nice and Cannes, other people prefer the more relaxed parts of France like the Canal de midi area and you can’t forget Paris.
The key to finding the right property for you in France is to know where you want to be and this is a lifestyle choice.
The best advice we can offer you is to make a few trips to different areas in France to find out what lifestyle you like. Once you know the lifestyle you like then start shopping for property.
Number Two
Shop When Other People are Not Shopping
To find the best opportunity in terms of price it is a great plan to shop in the winter months. This is when most seller’s are more negotiable with their pricing.
Number Three
Visit in All Seasons
Make sure that the property you buy in an area that appears calm and quiet is in fact calm and quiet all year round. This means you will need to visit your favourite area when it is sunny and not so sunny.
Number Four
Match the Property to your Lifestyle
If you like the idea of spending days cultivating your French land maybe growing vines and relaxing with a glass of wine as the sun sets then a property with land may be ideal for you.
If you prefer to be in the center of town people watching and in minutes to a bakery or coffee shop then a village home maybe ideal for you.
Remember just like you need to choose your region carefully your style of property must match your way of living.
Number Five
The Price may Not be Right
The least expensive properties that need lots of renovation be they barns or old apartments may seem attractive but are you willing to deal with renovations that often take much longer than expected.
Sometimes it better to buy a place that is livable, in a sense at least half way to where you would like it be once the full renovation is done.
Number Six
Know your Cost is more than the Price
Make sure you have a very good estimate of the cost of making your French property purchase before you start looking. Make sure you account for notary fees, agency fees and all the items in your budget to purchase.
Number Seven
Work with a Professional
When you are ready to start shopping for French real estate make sure the person you are working with is a registered agent working under a Carte Professionelle. Ask to see their registration card. You have the right to do so.
Number Eight
Be aware of Pricing Policies
Some agencies may charge different fees to other agencies and therefore have the same property for sale at a different price. Make sure you are working with an agent who will help you get the best price.
Number Nine
Know what you can Afford
Many transactions in France take place as cash purchases. If this is possible for you then you can use the fact you are paying cash to help get a better price on your French property. If this is not possible make sure you are working with a lender who can help you obtain financing for a French property.
Number Ten
Keeping Currency Aware
Make sure you are aware of how much exactly the cost and maintenance of your French property will cost in your home currency if the French property is your secondary residence. This is especially important if you are going to be paying a mortgage in Euros through a different currency like dollars or pounds. A currency service can save you a lot of money.
Tomorrow you will find tips eleven to twenty, see you then.
Meanwhile you can check out our guide 110 Tips for French property buyers
(Remember if you are looking for an English speaking French real estate agent in your favorite part of France we can help you connect. Contact us here.
We recently got a first time call from a surprised French property buyer because they were shocked what they found out when they asked an electrician to inspect their home after they had moved in.
As you may know sellers are currently required by French law to supply certain diagnostic reports to buyers as part of the documents of sale.
However, sometimes the reports don’t tell important details that can be a potential financial disaster for the French real estate buyer.
This particular buyer had received reports on the old French home they had bought that the electricity in the home was not connected to the ‘earth (ground)‘ inside some of the plug receptacles.
In fact, the prior owner installed some ‘plug receptacles with the earth’ like this
Why! Because the home had ‘no earth’, yes, there was not an ‘earth’ attached to the electrical panel like this
Unfortunately, when the new owners purchased the property they relied on the diagnostics and as the notary typically declares in the sales documents the new owners accept the property in the condition it is, ‘earth or no earth’ installed.
Lesson learned: Do not rely on the electrical diagnostics for a French property, get a trained electrician to check out the home before you make an offer.
Expensive Lesson: French electrical repairs can be expensive. This couple found out that connecting the earth and fixing all the other electrical problems in the French property were 4800 euros instead of the original estimate of 1700 euros they got for the items noted in the diagnostic reports.
Global Finance has posted an article on the Best Cities to Live in the World and it includes Two French Cities.
The list is bases on the EIU report that comes to conclusions based on factors that include liveability, cost of living and safety.
The two French cities are Paris and Lyon.
Check out the complete list of cities here.