Tuesday, 16 August 2016

Tuesday, 16 August 2016

Selling a property in France – agency or private ?

I was recently asked about estate agencies in France and how selling fees are managed. Most agencies advertise their houses to include agency fees, (Price FAI) – as we do at Allez-Francais.

One or two agents advertise the property fully inclusive of all fees, (including agency & notary fees). However, this can be overly complicated, as prices may include fixtures & fittings, which would normally be excluded from notary fees.

Agency fees do also vary, sometimes quite considerably. Typically between 6 to 8%, which means that a house with a price net of 250,000 could be advertised anywhere between 265,000 and 270,000.

The agency fees are set out in the mandate which all agents have to have in order to market the property legally. The terms of the mandate will specify who pays the fees, either the vendor or the buyer, but in reality, because almost all properties are advertised to include the agency fees, it is effectively the buyer who pays.

There are a number of websites encouraging people to try and sell properties privately in France. On the face of it, this saves on agency fees and that money seems better off in the buyer's pocket than that of an agent.

However, not only can sales be slow, this can also be a huge mistake with legal and complicated repercussions. For example, items that should be listed in the Compromis de Vente (CDV) can be easily overlooked, and come completion day, the buyers are cursing their course of action as they haven’t got everything that they expected ... or worse.

On average, Allez-Francais fees are always highly competitive and we also offer the option of an exclusive mandat - which is of particular interest to any owners hoping for a quicker sale.

For details of the different Mandates we offer, please contact me sales@allez-francais.com

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