How Does a Real Estate Sale Work in France?

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Are you considering putting your house up for sale? Have you inherited a property and are looking for buyers? To prepare yourself properly and ensure your transaction is as successful as possible, Winter Immobilier explains step by step the real estate sales process, from the decision to sell to the signing of the final deed of sale.

Estimating your property

If you want to sell your property within a reasonable timeframe, it is essential to offer it at a fair price. The selling price of a house or an apartment is not set based on its purchase price, nor on your life plans: it is set based on market prices and the property's features. To be certain you are offering your property at a coherent price, it is important to have your property estimated by real estate professionals. Reliable agents will visit the site to accurately evaluate your property's strengths and weaknesses: in addition to its surface area, they need to know its volumes, general condition, whether it is classic or atypical, the exteriors, the environment (view, neighborhood, overlooking neighbors, accessibility), and its potential (suitability for a pool, possibility of extension or adding a floor, renovation work to consider, etc.). 

Once the price is set, you can choose to put your property up for sale either by yourself, by publishing a For Sale By Owner (FSBO) ad, or through a real estate agency (or several). The preparation of the real estate listing is crucial, because if you don't attract any visitors, you have no chance of selling your property! Pay special attention to your photos: declutter spaces to highlight volumes, take your pictures in daylight, and ensure good framing. Carefully choose a main photo that will catch the eye at first glance. However, make sure the photos are representative of your property: otherwise, you might attract visitors, but they will feel deceived, and you will waste your time as well as theirs! The listing must also include general information that is precise enough without losing the reader in too much superficial detail. The essentials are:

• The property type (land, apartment or house, detached or semi-detached house, recent residence or historic building, etc.)

• The surface area of its interior and exteriors, if applicable

• The number of bedrooms and shower/bathrooms

• Its location (municipality and environment: countryside, residential neighborhood, walking distance to amenities, etc.)

• Its main asset where applicable (sea view, quiet, large dual-aspect living room, historic character, etc.)

• Any additional features (cellar, parking space, building with an elevator, caretaker, etc.)

• Its energy and climate rating (A to G)

Choosing an exclusive or simple mandate

If you use a real estate professional to sell your property, you will generally be relieved of creating and distributing the listing. When you choose to entrust the sale of your land, house, or apartment to an agency, you can opt for three types of mandates: the exclusive mandate, the semi-exclusive mandate, and the simple mandate.

The simple mandate allows you to put your property up for sale with several independent agents or agencies. The exclusive mandate involves entrusting the sale of your property to a single agency. The semi-exclusive mandate differs in that it allows you to make a direct sale with a private individual without having to pay a commission to the agency. If you are hesitating between a simple or exclusive mandate, know that the exclusive mandate guarantees better involvement from the agents, who will work to sell your property quickly and at the best price to also earn the best commission. With a simple mandate, the involvement is lower because each agency knows the sale could be made by a competitor, meaning their efforts would be wasted. With an exclusive mandate, you can also negotiate lower agency fees, which will make your property's agency-inclusive asking price (FAI) more attractive.

Optimizing the property for sale

If you want to increase your chances of selling, you must present buyers with a property they can easily project themselves into. If the property's decor is outdated because it's an inherited house, or if your interiors are too personalized, you risk not triggering a "love at first sight" reaction from buyers.

Home staging is a solution that allows you to optimize your property for sale: it involves making it attractive to the largest number of people through inexpensive modifications: decluttering, organizing, depersonalizing, but also paying attention to finishes and updating the decor. It's not about embarking on major renovations, but rather highlighting the property's potential with a reasonable investment.

Showing your property

The viewing phase is important, and each one must be carefully prepared. When potential buyers visit, it is important that they find what attracted them in the listing in your home. Even if a professional handles the viewings, the owners can have a role to play: answering potential questions, presenting invoices, and providing reassurance about the neighborhood and environment. For viewings, make sure to present an apartment or house that is tidy and clean.

Managing purchase offers at or below the asking price

If your property has been correctly estimated, you have carefully crafted your listing, staged the home if necessary, and properly welcomed your visitors, you should soon receive one or more purchase offers. Several scenarios can arise: you may receive an offer at the asking price, several offers at the asking price, or one or more offers at a lower price than what you requested.

If you have to compare several offers, it is advisable to favor the buyer with the strongest financial profile. Every preliminary sales agreement indeed includes a financial contingency clause, which provides for the cancellation of the sale if the buyer does not obtain their loan. When this happens, you lose a lot of time and then have to start your sales process from scratch. All your plans could be jeopardized!

Compiling the technical diagnostic file

When you sell a property, anticipate the documents that will need to be presented at the signing of the preliminary sales agreement. Depending on the property's age and characteristics (condominium lot, etc.), these may include:

• The technical diagnostic file including lead and asbestos diagnostics, the statement of parasitic state (wood-boring insects), the DPE (Energy Performance Certificate), the statement of natural, mining, and technological risks, and the condition of electricity and gas installations.

• In the case of a condominium lot, the Carrez law diagnostic (square footage measurement), the amount of current charges, the minutes of the condominium's general assemblies, and the building's maintenance logbook.

Signing a preliminary sales agreement

The signing of the preliminary sales agreement generally precedes the signing of the final deed of sale by 3 months. Upon presentation of the preliminary sales agreement, the buyer first has a 10-day cooling-off period to withdraw. If they withdraw after this period, they will lose the deposit paid to the seller. When the buyer finances the property through a mortgage (the most frequent case), the preliminary sales agreement must mandatorily include a suspensive condition related to obtaining this loan. The validity period of the financial contingency is generally 45 days. Other suspensive conditions can be negotiated by the buyer, making the obligation to purchase dependent on obtaining administrative authorizations for work, or even the sale of their own property. Finally, the preliminary sales agreement sets the date for the signing of the final deed of sale.

Signing the final deed of sale

The final deed of sale is signed by both parties before a shared notary, or before two notaries if the buyer and seller each choose a different firm. The deed is read aloud. The signing is also the moment when the buyer pays the balance of the price and receives the keys to the property. The title deed is handed over to them within one year after the signing.

Winter Immobilier advises you on your future real estate sale in Nice

Would you like more real estate sales advice and, more specifically, to discover the latest trends in real estate in Nice? Feel free to visit our agency in Nice Gambetta or get in touch directly with one of our advisors by phone!