With real estate prices undergoing slight inflation, it's time to take a look at current promotions. Whether it's discounts, private sales, reduced fees or "digitalized" transactions, immonot has put together a list of the best deals to spot to buy without breaking the bank. The winter real estate sales are on!
With house prices up 2% over 12 months in the French provinces, according to the Indicateur immonot, the real estate market is not doing buyers any favors this year. But that doesn't seem to be making them shun the market, as transactions reached a record 958,000 sales in 2017. Fortunately, buyers were able to count on "discounted" interest rates, which enabled them to offset price rises in the real estate sector. Indeed, the average 15-year rate was just 1.51% in December(source: Observatoire Crédit Logement CSA). This compares with 1.56% last June. This small gain in the cost of borrowing, combined with larger rebates, has given the French back their real estate purchasing power. What are the best ways to make the most of year-round sales? The answer is immonot, who took advantage of the opportunity to find some great deals in notaries' stores, on the web and in sales rooms.
Tip 1
"Browse in notaries' offices
As you probably know, but it's worth reminding future first-time buyers, notaries offer a wide range of properties for sale. You'll find a selection in the following pages of this magazine and on the immonot.com website.
To help you with your purchase project, the notary's negotiation department presents a range of houses or apartments for sale, offers to visit them, examines your price offers and accompanies you right up to the signing of the preliminary sales agreement. Thanks to the intermediary of a notary, this acquisition offers several advantages:
- property put up for sale at market price,
- advantageous negotiation fees (4 to 6% of the purchase price on average),
- a single point of contact from the initial search to the signing of the preliminary sales agreement,
- legal certainty linked to the acquisition.
Potential savings: 5 to 10%
Selling at the right price, with limited negotiation fees, generates a significant reduction, which varies from sector to sector and from property to property.
Tip 2
Buy online with 36h immo
If you've never heard of "36h immo", remember this selling system, which is attracting more and more buyers. Offered by the immonot website and organized around an online bidding system, this interactive sale is a hit in major cities, where there is a deplorable shortage of properties in relation to the number of buyers. Apartments and houses in need of renovation are offered at very competitive prices, below their market value. For their part, prospective buyers are put in competition with each other via their secure space on immonot.
During the sale, which takes place over a 36-hour period, buyers compare their offers, each time adding the equivalent of a bidding step (€2,500, for example). At the end of the "36h immo" sale, it's the highest bidder in terms of price, or the most reassuring buyer in terms of financing, who wins the sale.
This interactive transaction system, equivalent to an online auction, offers a number of advantages:
- exceptional properties offered at friendly prices (first offer possible),
- reduced acquisition time,
- products with genuine exclusivity,
- legal certainty with the involvement of a notary,
- a great opportunity in tight markets such as Bordeaux, Lille, Nantes, Rennes...
Possible savings: 10 to 15%
The first possible offer is around 15% less than the presentation value (market price of the property).
Tip 3
Identify lesser-rated properties
If geography isn't one of your priorities, the market still has some great opportunities in store for you. For the moment, significant price rises have only affected the biggest cities. If the prospect of moving to the countryside doesn't frighten you, you'll find quality properties at the best negotiated prices. This is because small provincial towns are suffering from a certain disaffection on the part of young households, who prefer to live closer to the big cities, for reasons linked to the job market or the range of services on offer. For example, a 5-room/110 m2 house can easily be found for a median budget of €150,000, while a 70 m2 apartment in a large city like Bordeaux fetches €245,000 (€3,500/m2 on average). These price differences mean that you can take advantage of the great features of a property at a lower price:
- double the living space,
- appreciable quality of life, away from urban nuisances,
- construction with noble materials,
- land with potential for extension.
Potential savings: 25 to 30%
The difference in price per square metre can range from 1 to 3 on average between town and country for a property of the same surface area.
Tip 4
Take advantage of lower costs
The purchase of a property is accompanied by acquisition costs, most of which are paid to the State and local authorities. While the purchase of an old property represents around 7-8% of the acquisition price, the rate is only around 2-3% for a new property. This translates into a difference of 5 to 6 points, which is always worth taking into account. This may involve new construction or certain work. This applies to homes sold by a developer-builder under the "vente en état futur d'achèvement" (VEFA) scheme, i.e. those that have just been built and have not yet been occupied.
In this case, the sale price includes VAT, and acquisition costs are lower, being limited to the land registration tax and the notary's fees.
Under these conditions, it may be worth choosing a recent property to take advantage of :
- lower costs,
- newer homes,
- more energy-efficient properties...
Potential savings: 4 to 5%
The higher the price of the property, the higher the acquisition costs! A new-build property can help you cut the bill!
Tip 5
Try your luck at auction
With candlelight sales, notaries offer properties at auction. It's a great way to save money on rare or well-located properties. The principle: a small wick marks the start of the sale, and once three successive fires have been extinguished and no new bids have been received while they were burning, the property is sold to the last bidder. Please note that auction fees of 2-4% of the final price must be added.
New: degressive bidding. The sale starts with a public price that drops by €200 every 30 seconds. The first bidder to place a bid wins the property. With profitability increasing over time, it's ideal for rental investment!
Potential savings: 5 to 30%
While auctions can produce some great deals, they are limited to major cities and remain rare.
Christophe RAFFAILLAC