You might think that there are really only two main ways of buying property in France – either by purchasing a resale piece of land or real estate through an estate agent, or by committing to purchase an off plan property from a developer…but you’re wrong!
There are two alternative methods of buying property in France that are becoming increasingly popular with overseas buyers who are confident, who speak French relatively well and who, above all else, want to secure a bargain French home - and if that sounds like you, read on to find out how you could potentially save yourself a fortune when hunting for that dream French property.
Buying French Property at Auction
Buying property at auction is a commonplace event if you herald from Australia for example, but for Brits and other Europeans auctions are places where the majority of us would only ever consider bidding for furniture or perhaps a used car at a push! However, auctions are actually fantastic places to buy property at bargain prices and France is no exception.
French property auctions are held quite frequently across the nation with the majority of homes up for sale under the hammer actually there because of inheritance disputes, repossessions, debt defaults and so on…those selling the property are often not a passionate owner determined to get top euro for their home but an individual or corporation hoping to salvage some form of financial return from the sale of a piece of real estate.
By taking the emotion out of a property sale you can often buy for a far more attractive price – as cold hearted as that may sound…
If you’re thinking of buying French property at auction there are certain key facts that you must keep in mind. Firstly you must view the property well in advance of the auction, get it surveyed and checked out if you’re serious about putting in a bid for it as it is pretty much sold as seen on the day of the auction – i.e., you will have no comeback if you buy, move in and the roof falls off!
You usually have to have a solicitor/notary or avocat bid on your behalf – so you need to find one who is willing to do your bidding and you have to give them written authorization to bid on your behalf up to a certain maximum amount. You then have to have 20% of that amount to hand on the day of the auction in case your bid is successful, and it is normal to turn the entire sale around within a maximum of 3 months of the sale. Remember - if you’re going to need a mortgage to buy property in France…get it agreed before you even consider bidding!
Purchasing Real Estate in France Direct
Buying direct is not something that one usually considers if buying abroad because there are too many unknowns - from finding property that is actually up for sale from a vendor who has the right to sell it, to getting contracts drawn up that are legal, binding and that protect your rights. But France is a bit of an exception…more people are purchasing real estate in France direct now that the internet has such a presence in many more people’s lives. You can search online for property for sale by the owner - you can also look in specialist magazines as well as local newspapers in France and find those vendors who prefer to handle the sale of their home themselves.
If you feel your French is good enough to handle initial enquiries, viewings and negotiations by all means, go ahead and research your property options. Do not however sign any contract or hand over any money – not even a holding deposit – without first getting your solicitor (notaire) involved in the transaction. There is so much that can go wrong if you don’t involve a lawyer…they have to ensure the vendor is legally allowed to sell, they have to check the title of the property is valid, they should advise you about whether the asking price is right etc. Additionally if buying an older resale it makes sense to get a surveyor to check it out before handing over any form of deposit.
As you can see there are alternatives to the more traditional French property buying process that involves off plan homes or estate agents – but always proceed with caution and heed the advice and warnings of your lawyer and others who have followed the path before you!
