Selling property in France

[mint]

Well, Francelover, I cannot generalise from my own experience but, in the last 5 months, I've had 2 offers turned down.

I didn't offer some insulting take-it-or-leave-it price either.  One offer was for the full asking price minus the price of a new fosse (for which we had an actual devis, so not a figure we plucked out of the air) and the other was for 11% less than asking.

The second owner wanted to come back and negotiate further but I decided at that point to walk away because, as you have pointed out, he'd obviously had problems selling and I wasn't going to knowingly take on a property which I might also well have trouble off-loading at a later date.

[Sprogster]

Francelover, my understanding is that most property buyers of second homes in France, were bank financed by companies like GE, who were very active in this market. However, now it is difficult enough to raise sufficient finance to buy a primary residence, and mortgages on holiday homes are all but unobtainable, or if they are, subject to much stricter loan criteria.

Therefore, until the banks start lending again on holiday homes, selling a holiday home will be extremely difficult and this situation is likely to persist for some years.

[Sunday Driver]

I recall a conversation with my Immo some time ago when she commented that older rural properties were generally only attractive to potential British buyers, so the falling exchange rate was making it difficult to sell those properties. The main considerations for French buyers were a modern, energy efficient house with a small low maintenance garden, preferably in or near to a town for access to employment, schools, medical facilities, entertainment, etc.  The cost of daily travel to and from work then having to take the kids to their evening judo classes was an important consideration, so there was little interest in anything situated more than fifteen kms outside of town.

 

[woolybanana]

yes, by and large true Sunday, I think.

[Francelover]

Yes, I agree.

French buyers generally don't want older properties at almost any price.

Interesting that you've had a couple of offers turned down.  I haven't heard that here for many years now.

I think financing is absolutely right.  Foreign buyers have vanished here since the end of 2007. That's partly due to a collapse of confidence, partly due to some buyers waiting to see where the market will bottom and finance.

Relocators can't free up their equity from their UK homes and getting a mortgage is tough.

Not sure where it will all end! 

 

 

[just john]

Don't think it's gonna end anytime soon, English sales in France are gonna reflect this . . .
 telegraph Property-asking-prices-fall-again

 

[pachapapa]

[quote user="just john "]Don't think it's gonna end anytime soon, English sales in France are gonna reflect this . . .
 telegraph. /Property-asking-prices-fall-again[/quote]

http://www.telegraph.co.uk/finance/economics/houseprices/7946482/Property-asking-prices-fall-again.html

[arc]

We've just had our offer rejected by a seller.

We offered 7,5% below the asking price. So I guess some sellers think the market is going to improve in a not too distant future?

[mint]

Depends on the initial asking price.  If it's already low or "realistic" in estate-agent-speak, then there may be very little room for a reduction.

It also intrigues me how some houses come on the market and practically walk off the shelves whilst others (seemingly real bargains) sit unsold for months on end.

I have observed this phenomenon as I have looked intensely at property in many areas of France for about 2 years now.

[arc]

Yes, but the internet ad for the house clearly says, "Price negotiable". When I see such a sign, I expect to be able to get a reduction of at least 5% and 7,5% should be okey too. What does "Price negotiable" mean? One euro less than the asking price?

[Will]

Don't worry, some buyers/sellers will never agree on a price straight away - they expect a long negotiating process. They no doubt want you to come back with a higher offer. Having started the ball rolling, you can now ask them what price they are willing to accept, which will be, say, 2.5% below asking. You will no doubt eventually end up agreeing on a figure somewhere between, around 5%, which it sounds as if it might be acceptable to you both.

On the other hand a higher offer may have been received from another buyer. It's rare these days, but still does happen.

The fact that a few people will tell you that French houses sell at 30%-40% below asking price means solely that the houses were ridiculously overvalued (again, not uncommon in France) or that they struck lucky with an unusually desperate seller. The sort of discount you mention is much more realistic.

[mint]

Oh, Will, you put it all so much better than I do.

In many ways, as you say, it is about striking a deal between the 2 parties.  A bit of negotiating is to be expected.  If you really want the house, then you go back and re-negotiate the price.  Otherwise, you walk away and look for another property.

I think the thing to do is not to have too fixed an idea about price.  Generally speaking, if you have looked at a number of houses, you get a very good idea of what is good value, fair value, overpriced or whatever.

I look at the "expensive-to-remedy" elements to begin with:  that is, conformity of fosse, standard of electricals, condition of roof, type of heating and then at the less costly stuff like fencing, new kitchens, bathrooms, decorating etc.

Set a budget and do your best not to exceed it or, if you do exceed it, be sure that you can "justify" it to yourself: put another way, you don't think you can buy another property with the same amenity at the same price.