How Does a Real Estate Sale Work in France?

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Are you planning to sell your home? Have you inherited a property and are looking for buyers? 

To properly prepare and maximize the success of your transaction, Winter Immobilier will guide you step by step through the process of a real estate sale, from the decision to sell to the signing of the authentic deed.

Valuing Your Property 

If you want to sell your property within a reasonable timeframe, it is essential to list it at a fair price. The selling price of a house or apartment should not be based on its purchase price or your life plans but on market prices and the property's features. To ensure that you list your property at an appropriate price, it is crucial to have it appraised by real estate professionals. Serious agents will visit the property to precisely evaluate its strengths and weaknesses. In addition to its size, they will consider its overall condition, whether it's conventional or unique, the outdoor space, the environment (view, neighborhood, proximity to other buildings, accessibility), and its potential (such as the possibility of adding a pool, extending the building, or necessary renovations).

Once the price is set, you can choose to sell your property either on your own by posting a private listing or through a real estate agency (or several). Preparing the property listing is crucial because if you don't attract visitors, you have no chance of selling your property! Pay special attention to your photos: clear the spaces to showcase the volume, take photos in daylight, and ensure good framing. Carefully select a main photo that will capture attention at first glance. However, make sure the photos accurately represent your property; otherwise, you may attract visitors who feel misled, wasting both your time and theirs! The listing should also include general information that is detailed enough without overwhelming the reader with superficial information. Essential details include:

• The type of property (land, apartment or house, detached or semi-detached, new development, or historic building, etc.)
• The size of the interior and exterior spaces, if applicable
• The number of bedrooms and bathrooms/shower rooms
• Its location (town and environment: countryside, residential area, walkable neighborhood, etc.)
• Its main feature, if applicable (sea view, quiet location, large open-plan living room, historic charm, etc.)
• Any additional features (cellar, parking space, building with elevator, concierge service, etc.)
• Its energy and climate rating (A to G)

Choosing an Exclusive or Open Listing Agreement 

If you use a real estate professional to sell your property, you will generally be relieved of the responsibility 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 one of three types of agreements: an exclusive agreement, a semi-exclusive agreement, or an open listing agreement.

An open listing agreement allows you to sell your property through multiple independent agents or agencies. An exclusive agreement means you entrust the sale of your property to a single agency. A semi-exclusive agreement differs in that it allows you to make a direct sale to a private buyer without having to pay the agency commission. If you're undecided between an open or exclusive agreement, know that an exclusive agreement ensures greater involvement from the agents, who will work to sell your property quickly and at the best price, as they stand to earn a better commission. In the case of an open agreement, involvement may be lower because each agency knows that the sale could be made by a competitor, making their efforts potentially wasted. With an exclusive agreement, you can also negotiate lower agency fees, making your property's sale price more attractive.

Optimizing the Property for Sale 

If you want to increase your chances of selling, you need to present buyers with a property they can easily envision themselves in. If the property’s décor is outdated, as is often the case with inherited homes, or if your interiors are too personalized, you risk failing to inspire 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 widest possible audience through low-cost modifications, such as decluttering, organizing, depersonalizing, and also paying attention to finishes and updating the décor. It's not about undertaking major renovations but highlighting the property's potential with a reasonable investment.

Showing the Property 

The viewing process is crucial, and each viewing must be carefully prepared. When potential buyers visit, it’s important that they find in your property what attracted them in the listing. Even if a professional is conducting the viewings, the owners may still play a role: answering any questions, presenting invoices, reassuring them about the neighborhood and environment. For the viewings, make sure to present a tidy and clean apartment or house.

Managing Offers—At Asking Price or Below 

If your property has been properly appraised, if you have taken care with your listing, done home staging if necessary, and welcomed your visitors as you should, you should soon receive one or more purchase offers. Several scenarios may arise: you might receive an offer at the asking price, multiple offers at the asking price, or one or more offers below the asking price.

If you need to compare several offers, it is advisable to prioritize the buyer with the most solid financial profile. Indeed, every sales agreement contains a financial contingency clause, which allows the sale to be canceled if the buyer does not obtain their mortgage. When this happens, you lose a lot of time and must start the sale process all over again, potentially derailing your plans.

Preparing the Technical Diagnostics File 

When selling a property, anticipate the documents that will need to be presented at the time of signing the sales agreement. These may include, depending on the age of the property and its characteristics (part of a condominium, etc.):

• The technical diagnostics file, including lead and asbestos reports, pest inspection (wood-destroying insects), energy performance certificate (EPC), natural, mining, and technological risks report, and the state of electrical and gas installations.
• In the case of a condominium unit, the Carrez Law measurement report, the amount of the regular charges, minutes from the general meetings of the condominium, and the building's maintenance logbook.

Signing the Sales Agreement 

The signing of the sales agreement generally precedes the signing of the authentic deed by three months. After the sales agreement is presented, the buyer has a 10-day period during which they can withdraw. If they withdraw after this period, they will lose the deposit paid to the seller. When the buyer is financing the purchase with a mortgage (the most common scenario), the sales agreement must include a financing contingency clause linked to obtaining the loan. The validity period for the financing contingency is usually 45 days. Other contingencies may be negotiated by the buyer, such as making the purchase dependent on obtaining administrative authorizations for work or selling their own property. The sales agreement also sets the date for signing the authentic deed of sale.

Signing the Authentic Deed of Sale 

The authentic deed of sale is signed by both parties in the presence of a notary (or two notaries if the buyer and seller each choose a different notary). The deed is read aloud. The signing is also when the buyer pays the remaining balance and receives the property keys. The title deed is issued to them within a year after signing.

Winter Immobilier's Advice for Your Future Real Estate Sale in Nice 

Do you want more real estate sales advice and, more specifically, to know about the trends in the Nice market? Feel free to visit our real estate agency on Nice Gambetta or contact one of our advisors by phone!