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Buying a House in France, what should I offer?

16K views 21 replies 17 participants last post by  Leforgeron  
#1 ·
I have seen a house for sale which would suit me down to the ground. It's immediately habitable, it's in the area I want to move to and the owner is selling it as his health doesn't allow him to travel anymore. He wants 115,000 Euros for it. I read somewhere that the usual practice is to offer 20% of the asking price which would be 92,000 in this case.

What does everybody think?
 
#2 ·
A lot depends n other variables - for example how long has the property been on the market, and how desparate is the seller to sell, etc

However 20% below the offer price is ok, providing you know what the max is that you are prepared to pay.

If you have the funds available you could go less than 20% if the seller is really keen to sell.

As with all purchases like this don't be afraid to walk away if the price is not right - they can always call you!

DejW
 
#4 ·
I note you give no indication of where the property is located, whether it is really old or new, or somewhere in between.

However, it really depends on whether it is competitively priced for the local market - do you have any idea what similar properties are actually achieving in the local area? If the property has been on the market for a good while, you might expect that it is overpriced for the current market. The other issue to consider is the reports required to be provided by the buyer when a property is placed on the market - is everything OK or are there matters that need rectifying, what is the energy rating etc? If there is work to be done, that would certainly mean that you could negotiate lower (maybe even start at lower than -20% depending on what the additional costs to the buyer are likely to be). If everything is OK, then -20% could be a starting point for negotiations - all you can do is to test the waters.

At the end of the day, though, if you really love the property and really want to buy it, it's going to depend very much on how much you are willing to pay - however you definitely should negotiate. The worst the seller can do is refuse the offer and, if there are no other higher offers you can always come back with a higher offer.
 
#5 ·
He won't take less than 100k for it. As a matter of fact, there is very little ground for haggling in France, I think. Offer something along the lines of 105 and be glad if he takes it. You won't get him to lower his price from a triple digit to a double digit, I think.
 
#7 ·
I've bought houses in three countries, but never France. You know more than me. But are you sure about this? Have you purchase houses in France? I find the 20% offer below asking price common throughout the world. I agree that triple digests presents an artificial barrier, but 20% is a much stronger tradition, I think, but don't know.
 
#6 ·
France is a big place so it would be helpful to get more info. I do not know a lot about French real estate but I do invest in US real estate. Buying a property in Yonkers, NY is much different than buying in Hartford, CT or Las Vegas, NV. Each place has its own set of rules. Here are a few things I would say:

1. Be an attractive buyer. Have proof of funds, be pre-approved and have your bank write a reference letter. If you know you will get a loan, go in without a mortgage contingency.
2. Know your best price before you go in.
3. Research what comparable properties are being listed at as well as sold for.
4. Your first offer will be rejected if your not offering close/asking so if you expect to get it for 20% off list, start lower. If you go much lower than 20%, you could insult them.
5. The longer the house has been on the market , the more comfortable you should be with a lowball offer.
6. I do not know if you are dealing with the owner or someone representing the owner. If you are not dealing with the owner, ask the sellers representative if the house has had any previous offers and what they were. I will usually ask "Where do I need to be to get this deal done". Again, this may not work in France but in the US, sellers agents just want to get a deal done and will usually tell you whatever you want to know.
 
#8 ·
We tend to have this discussion every time someone is trying to buy a house in France. Many people say to automatically offer 20% less than the asking price - though I've found that it really does depend on the person selling the house.

If there is an "exclusive" contract to sell the house with an estate agency, the rule is that you must agree to sell if the agent brings you an offer for the asking price, so bidding low you run the risk of being aced out. Of course all of this depends on the market in the area and at the time you're looking.

There's also the factor that some people actually put their house on the market at the price they want to get for it. The "games" people play with regard to selling property here can be a bit different from those in other countries. OTOH, if the owners think they are dealing with a Brit (i.e. you speak English) they will probably hold out for something more than the market price - at least out in the countryside. (Everyone dreams of making a killing selling their house to a Brit because they are known to overpay - thereby pricing local young couples out of the market.)

You really have to try and psych out your audience here. Will they accept less? (say, because the house has been on the market for a long time) Or will they be insulted by a too-low offer?
Cheers,
Bev
 
#9 ·
put an offer in 30% below selling price minus Estate agents fees and notaires fees(usually about 8% of purchase price). if the property has been on the market for over twelve months you can probably go even lower.
the french housing market is collapsing, expats other than brits can not afford to buy over here yet, if possible ask the seller to pay 50% of estate agents and notaires fees as well.
 
#10 ·
People should stop thinking about offering 20 % - 30% less. It means nothing. You have to work out what its market value is and offer that. I know a house that is at 76,000 euros (it used to be 96,000) and has been on the market for years and years. It will never sell. I am going to offer 10,000 euros as that is how much it is worth. If I offer anymore I will lose money. If they accept they accept if they don't they don't.

I don't think the housing market is collapsing in areas that French people need to live in order to work.
 
#11 ·
when I bought my house I went to the village on my own , talked to neighbours and found that the property had been on the market for 5 years !

offered 40% off the asking price but agreed to pay all fees

refused

offered 30% off , vendor to pay agent

accepted

circumstances alter cases
 
#12 ·
I think you should listen to all advice given here by people who have actually bought. Offer what it is worth on the market today. If that is 30% - 50 % less, so be it. As to insulting the seller, you are not making friends, you are buying a house. Even if they live in your village they will not hold a grudge, they will accept what they can live with.
 
#13 ·
Thank you for the responses.

The house in question is in the Centre region, an area which is losing population. The house has been fully restored, re-plumbed, re-wired, re-roofed, re-floored, redecorated, fitted with double glazed windows and a new septic tank. It has a large barn in sound condition with a concrete floor and a garden area of just under an acre. The barn is also connected to the septic tank in case a new owner wanted to increase the amount of accommodation. The owner is a Brit whose health has deteriorated to such a degree that he can no longer travel; I have spoken to the gentleman. The house has been on the market for two years and I have the cash to buy it outright even at the asking price if I want to.

So I have a supplementary question for you all.

If the buyer and seller agree a price, how long does it take to complete the change of ownership? I

I know that this will vary considerably but I intend to rent in the interval and would like to have some idea.
 
#14 ·
I've been told that any real estate transaction here in France takes a minimum of 3 months to process the paperwork and arrive at the closing meeting. It has to pass through a notaire - and you can get a closer estimate of the time to close by asking the notaire you plan on using.
Cheers,
Bev
 
#17 ·
Af for house buying, I'd suggest being sure to check Leboncoin.fr or the PtP website to see if you can avoid the Immobilier costs. We'd been looking at an apartment listed through an immobilier website, and found it for sale by the owner for 20K less. Other than advertising the property, we didn't see much that the immobilier did. The notaire will draw up the Comprimis de vente, and collect all the paperwork. According to our notaire, he estimates 2 months after the Comprimis is signed, to plan for the Acte Authentique. HOWEVER, it took 6 weeks to get the Comprimis prepared because of August vacances, and the new paperwork needed when an apartment or condominium is being exchanged.
Terry
 
#18 ·
Offer low you can alway go up but never go down,
when we bought our house a couple of friends said they thought we had paid to much and another said we have a bargain so my advice is if you feel its perfect for you & you would be upset to lose it start at 92 if refused go up 5,000 & continue until you have reached your topline you can search for years to find the right property so when you do if in your price range my advice would be BUY IT.
 
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