Selling Property in France Tips Advice Pointers And Taxes

A major decision is to sell your French property. There are, however, easy ways to increase profits, shorten the time involved, and reduce overhead. France, in Western Europe, encompasses medieval cities, alpine villages and Mediterranean beaches. Paris, its capital, is famed for its fashion houses, classical art museums including the Louvre and monuments like the Eiffel Tower. The country is also renowned for its wines and sophisticated cuisine. Lascaux’s ancient cave drawings, Lyon’s Roman theater and the vast Palace of Versailles attest to its rich history.

 

Our suggestions don’t require you to be a tax whiz, handyman, or property expert.

A lot of it is about using your head and learning how to manipulate the sales process to your benefit.

 

Do you know about the “8-second rule”?

I, like the majority of homebuyers, suffer from a lack of creativity.

People with this trait tend to be highly decisive and focused primarily on the immediate situation at hand.

In the real estate industry, the “8-second rule” is often cited.

According to the rule, a person has only eight seconds to make up their mind on whether or not to purchase a home.

Whether or whether that’s the case, I know that I am guilty of making snap decisions.

I would guess that many more are as well.

A sense of either “wow, this is lovely” or “argggghhh, get me out of here” might come over you instantly.

 

Investing in French real estate is largely a gut feeling.

Consumers typically make purchases based on instinct rather than reason.

Therefore, it is essential to make a good first impression on potential purchasers of your French house.

If you want to make your home more presentable, consider these three tips.

To begin:

 

  1. prioritise curb appeal

People in the real estate industry often refer to a home’s “kerb appeal” before a buyer has ever set foot inside.

Improve your home’s kerb appeal with these simple and inexpensive tips:

  • Make sure your house or building has a great sign or number.
  • Get some new plants and flowers in your garden.
  • Fix any damaged stairs or sidewalks.
  • You should probably mow the lawn.
  • One should clean the window and door shutters.
  • The dust and spider webs need to be brushed away.

 

  1. Locate a great site for a little bench with two seats.

The aforementioned can be done for a few hundred Euros at most, and will leave a good impression on potential purchasers.

Love is the greatest multiplier.

Remove any unnecessary items

I asked my real estate agent, “What would you like me to clean away?” while I was getting ready to sell my last home.

Everything, if that’s okay,” he added.

Incredulous, I had to take a second look. I fancied myself a person of exquisite taste. I even had one of those sleek-looking Dualit toasters in my own kitchen.

Even the toaster?” I retorted. Yes, that’s what he said.

Buyers don’t want to look at your stuff, and that’s the goal.

Keep in mind that the asset being sold is the home itself and not your personal belongings. Cleaning up the house helps potential buyers concentrate on the home itself.

Rather than thinking about the people who really live in the home at the moment, prospective buyers are trying to picture themselves there.

Potential buyers will be turned off by clutter like post cards on the fridge, unwashed dishes, unpaid bills, and even your incredible collection of teaspoons.

 

  1. The cheapest and quickest way to multiply by tens of thousands

An orange “feature wall” or old, peeling wallpaper is bound to turn off potential buyers.

But freshly painted walls in neutral colours are liked by virtually everyone.

It happens over and over again: In a short amount of time, a fresh coat of paint can completely alter any room.

As a result, it has the power to transform a gloomy cave into a cosy little house.

One of the best methods to increase your home’s value by the thousands is to paint it.

You can save money by painting the room yourself, but I’ve found that painters are among the most reasonably priced professionals to employ.

Whenever I’ve listed a house for sale, I’ve always hired a painter to touch up the most visible walls. I have absolutely no regrets.

To what extent may minor repairs increase or decrease the asking price of a home?

Selling a property in France as a expat means that the buyer might very well be another expat.

Most Brits who move abroad are retirees or those wanting to buy a second property.

They want a taste of the high life.

Many potential purchasers will back out because of the need for repairs.

If a buyer notices that you haven’t fixed the glaring problems, they may worry that there are more significant problems hiding elsewhere.

If they don’t find what they want, many potential purchasers will just go on.

Those who are still considering it will likely negotiate a significant price reduction to account for the high cost of maintenance and any unforeseen problems.

Your realtor should not use the phrase “development opportunity” while describing your property.

This is just a nice way of stating that it’s in bad shape. The kind when everything is torn down and rebuilt from scratch.

Dealing with obvious faults is always the best course of action.

The buyer is in a worse position to coordinate repairs than the seller is.

You are familiar with the area and can find a painter, plumber, electrician, builder, handyman, or anybody you need to fix any problems more quickly.

Maintaining your French home well means that potential buyers won’t have any reason to back out of a purchase or ask for a significant reduction in price.

 

Obtaining a valuation for your French home

Before contacting real estate brokers in France, I would recommend getting a sense of how much your house is worth.

Green Acres, French Property, Rightmove, and Esales Property and Cle France are just few of the major French property websites you may use to research other properties on the market in your neighborhood.

Location has a significant impact on the selling price, therefore the more specific your search criteria, the better.

The French Ministry of Economy and Finance developed a new website in May 2019 that might help you get a sense of the general pricing trend in your area.

The goal of making this data publicly available is to increase pricing transparency on the French real estate market.

Choose your area and city from the drop-down boxes, and then save the information as an Excel file.

It gives you a wealth of price information dating all the way back to 1971 and illustrates how your location has fared in comparison to regional and national trends.

Because of the increased availability to information, real estate brokers may be better equipped to provide sellers with reliable appraisals.

Identifying a reliable real estate agent.

Estate agents aren’t exactly the most trustworthy people in the world.

However, I believe they can significantly impact the selling procedure.

Some estate agents perform a far better job than others, just as is the case in any pitch.

I always start with a word of mouth when looking for a reliable agent. The power of “word of mouth” cannot be overstated.

Your goal is to identify successful real estate agents, not simply those who have the most listings.

Get together with your top picks once you’ve narrowed the pitch. If they make an impression on you, it’s likely they’ll make an impression on potential purchasers as well.

In my experience, I am more likely to choose an agent who appears professional, honest, and certain.

I enjoy seeing guests examine your home and appreciate its finer points. The reason being, I’m looking for a real estate enthusiast rather than a commission-driven salesperson.

 

How much do real estate brokers in France usually charge?

In France, the commission on the sale of a home can range from 4% to 10%.

A higher commission rate would be expected to be paid for a property with a lower asking price since the agent still has to earn a profit.

Expect a fee of 4-5% on average for luxury French real estate.

Remember that the agent’s commission is up for discussion. This is not a controlled figure.

The larger national networks are less likely to be amenable to bargaining than the smaller independent agents.

You may be able to negotiate a lesser commission with your real estate agent if your home is in good shape and is located in a desirable area.

Because the agent will assume an easy sale, they will be more amenable to a lesser commission.

If you’re willing to sign an exclusive agreement with one agent, you’ll save money on commissions.

When working with many French real estate agents, expect to pay a higher cost overall because agents typically agree to divide the commission.

Some brokers have told me that they can persuade the buyer to cover their commission, so that the seller doesn’t have to.

 

Let me offer some tips on how to negotiate.

Both the buyer and the seller may feel the most pressure during the offer phase.

An offer might make you feel like you’re in a high-stakes game of poker.

For myself, I don’t like playing hardball in business. The goal is not to do damage to the opposing team.

Negotiators who refuse to budge even an inch usually end up with a partial victory but no sale at all. Definitely not a triumphant outcome there. A compromise is what you’re after.

The agent’s role typically shifts to that of a counselor or confidant after an offer is made. The natural inclination is to ask them for advice. However, I do my best to refrain from doing so.

Even if you’re paying them, the agent isn’t necessarily on your side as the seller.

An agent’s main goal is to close the contract. To do so is part of their duties. I don’t hold it against them.

Your representative likely inquired as to the motivation for your sale, the deadline by which you must sell, and the bare least you would take at an earlier stage. It’s not just small talk.

Their true question is, “Are you that desperate?”

We’ve been thinking about it for a long and have decided it’s time to move on,” but I’d rather not give the agent too much information. I’m not in a rush or anything. Then we may see what kind of bids we get. Responses are preprogrammed in an autocue. No need to show your hand just yet.

If you get an offer, you should enquire with your agent about the potential buyer. What method of payment are they using? They’ve been seeking for how long? Just how many times have they been viewed? In this case, you want to see how perceptive they are.

In the past, I have told the agent “it’s a polite no” if the offer made was far lower than what I was hoping to get. I don’t respond to lowball offers with higher ones. Permit them to visit again if they like.

If the proposed price is close to what I’m looking for, I’ll make a counteroffer a few days later. Even while I don’t want to be late, I also don’t want to hold things up by coming back too soon.

For some, haggling over an offer’s price is an uncomfortable or even perilous proposition. With proper manners and a willingness to negotiate, you may increase your asking price by several thousand dollars.

There are too many possible outcomes for me to predict them all. How long you have to wait and if there has been any additional interest will determine the answer.

A good rule of thumb is to ask for 5-10% more than you believe the home is worth. This creates the possibility for compromise. The satisfaction of a price reduction is highly valued by the vast majority of customers (“Darling, that recently paid for a new dishwasher and fridge. Thumbs up!”). Allow them to cut the excess.

Effective real estate marketing in France

Property sales in France are notoriously slow.

Sometimes it takes months to find a buyer.

It takes an additional 10-12 weeks to finish the procedure after the pre-contract has been signed.

Having all the necessary papers on hand is a simple approach to speed things up.

You used to be the buyer, so you understand how important it is to have all the questions and paperwork in order before closing.

If you forget what information is necessary, your real estate agent or lawyers can assist refresh your memory.

There’s a bonus to having your legal paperwork in order. The sales process can stay on track if queries from the buyer are answered promptly.

Keep in mind that potential buyers will always wonder if your home is indeed “the one.”

They undoubtedly continue to get calls from other brokers offering them houses to consider.

It’s a good idea for potential buyers to keep an eye out for any brand-new properties that may come onto the market. These real estate websites have a high potential for addiction.

If the sales process takes too lengthy, the customer may lose interest and look elsewhere.

A rapid sale is always preferable in the real estate market.

Ways to minimise capital gains tax when selling a French home

Gains from the sale of a French property are subject to the following normal tax rates:

  • Capital Gains Tax: 19%
  • Health and Human Services Fees: 17.2%
  • Rate of Taxation: 36.2%

No matter if you are a French citizen or not, the aforesaid tax rates will still apply to you.

It is important to remember that the higher tax rate for non-residents was eliminated in 2015. Phew!

Extra CGT is due if your property’s net gain is more than €50,000. Gains exceeding €250,000 incur a 6% surcharge, whereas those below that threshold incur a 2% surcharge.

In addition, there are a few essential tax deductions that might help you save money.

The Industry-Standard 7.5% Cost-of-Goods-Owned De

You can minimise your gain by the amount you add to the purchase price (which is a normal 7.5%) to account for all buying expenditures.

You can also deduct the price of any modifications or repairs you made to your home (as long as you can provide invoices from tradesman).

You are entitled to a normal 15% allowance for repairs or renovations on property you have held for more than 5 years.

These deductions are not included into the selling price but rather added to the purchasing price.

Primary residences are exempt from all taxes.

In the same way that primary residences in the United Kingdom are free from capital gains tax and social charges, so too is a primary residence in France.

In order to qualify for the exemption, you must have a French tax identification number. If you put your home up for sale after moving out, you can keep the exemption for another year as long as it stays unoccupied (i.e., you don’t rent it out). You may also lose the exemption if you change your tax residency status during the time to that of the United Kingdom or any country other than France.

The Capital Gains Tax and Social Charges will both decrease after five years.

The CGT and Social Charges you pay begin to decrease beginning in the sixth year.

A 1.6 percent annual discount is applied to CGT, while a 1.6 percent annual discount is applied to social charges.

Holding French real estate for 10 years, for instance, would net you a 30% reduction in capital gains tax and an 8.25% reduction in social charges (no allowance in the first 5 years).

Even if the Notary will figure out what your tax obligations are, you may want to see a tax professional just to be safe. It will hopefully keep you out of trouble and pay for itself many times over.

This strategy for taking advantage of the currency rate might save you hundreds of dollars.

The majority of British sellers in France don’t even consider the currency exchange when listing their properties.

You may forgive them for that.

In many cases, the final step is to transfer money from France to the UK.

However, the amount of British pounds you receive depends heavily on the Euro to Pound conversion rate.

Changes in the rate, even by a few basis points, can have a significant impact on a real estate deal.

Bank fees for sending money from France to the UK might amount to 5 percent of the total.

If you want to sell a home in France for €140,000, for instance, it may set you back around €7,000 in legal fees.

To get the most out of your money, work with a currency broker who can not only provide you with better conversion rates but also monitor the market and alert you when the exchange rate shifts in your favor.

Forward contracts, available through a currency broker, can even be used to hedge against currency fluctuations that may occur during the closing process. You can secure a predetermined exchange rate prior to the deal’s finalization.

As a result, a forward contract can be used to eliminate currency risk if you have already traded but won’t get the money from the transaction for another two to three months.

If you’re planning to purchase a home in the UK, this will alleviate your concerns and let you stick to a predetermined budget.

Contact us to buy or sell property in France fast online.

 

 

Compare listings

Compare
Translate »
%d bloggers like this: