Property for sale by owner (FSBO), does it really offer huge benefits for both buyer and seller?
Why are more people looking to advertise privately?
One of the biggest factors is the high agent fee added to your property price. By adding this fee to your property price it can either make it appear over priced or you as the seller have to reduce your property price to accommodate the agent fee in order that the property doesn’t appear to be over priced.
If you found your property advertised with and without agent fees, providing a huge saving which would you choose?
Many sellers think that the buyer is the one who is paying the agent fee and it’s all free for the seller. Well maybe it’s time to review how the figures really add up using an agent and the potential financial benefits of marketing privately.
PRIX IMMOBILIER click the link to work out your property price in the current market.
Example: (% fee vary with agents)
Maximise your selling potential by offering your property for sale privately.
ESTATE AGENT PRIVATE SELLER
Asking price 210,000€ 210,000€
+ Agent fees % 19,000€ 0€
Advertising price 229,000€ 210,000€
The estate agent advertising price isn’t necessarily the market value of the property as this has added fees, therefore the property may devalue immediately once sold through an estate agent.
Buyer offer(which includes agent fee) 195,000€ 195,000€
Agent fee % taken from offer 18,000€ 0€
Seller receives 177,000€ 195,000€
As a private seller you have the potential to receive more money from the sale of your property than selling through an estate agent.
Why are more buyers looking to buy privately?
Choice, maybe it’s not an estate agent service they require any longer, times are changing, there are professional services widely available at a fraction of the cost of paying an estate agent, should a buyer require them, and don’t forget the Notaire is the one providing the legal contract, who is paid in addition to any agent fee.
We offer assistance with any part of the process of purchasing or selling a property as well as services from opening or closing a bank account, a telephone call and packages to suit your requirements, all for a great deal lower than using an agent, and these services still may not be included in their fees.
A legal service from a UK solicitor dedicated to French property purchase offer various priced packages, they liaise with your Notaire and are working for your interests.
THE AGENT IMMOBILIER AND AGENT COMMERCIAL.
The Agent Commercial is the person who will take you to view a property. They are generally self employed, and work as a representative for an Immobilier (Estate Agent). They are often required by the owner of the estate agency to build up a large portfolio of properties. It’s not necessarily a requirement to know anything about property, selling, the locations or even France to become and agent commercial.
What the agent commercial does for the seller.
As most agent commercial will need to build their portfolio of properties they maybe interested in yours, saying ‘we have clients looking for just what you have’. Most agents advertise your property in their agent window/online, often with limited details so buyers can’t find the property unless they contact the estate agent direct. We would strongly advise that as a seller you do not sign for a ‘mandat exclusive’ with an estate agent, this will mean that you can’t list your property with any other estate agent, this could potentially limit your property marketing exposure.
Generally the agent commercial will be wanting the seller to keep the price as low as possible allowing for a greater chance of a sale. The agent commercial may not be trained in the ability to make a valuation, they may though, through the agency they are associated with, have some form of selling training. This will more often be directed at how to achieve selling targets for the agency.
Estate agent fees need to be added to the price of the property and once these are displayed it may make the property appear over priced. It’s unlikely the agent commercial will reduce their fees, and whilst most sellers will be happy to accept offers close to the price, more often it is the seller who’ll take less.
Estate agent fees may range from a minimum of 4,000 € on percentage scale 3% – 10% of the price of a property.
What the agent commercial does for you as a buyer (you pay their fee)
- They will accompany potential clients to view properties
- Normally if the buyer wishes to put in an offer the agent will contact the owner
- If the offer is accepted the agent will either arrange an appointment with the Notaire/estate agent office in order that relevant documentation can be completed to start the purchase process . Normally as it will be a legal document the Notaire will be carrying out the majority of the work for your purchase.
Notaire fees are additional and obligatory, on top of any estate agent fees. These fees are an approx additional 6-8% of the purchase price.
More often the Notaire will make contact with the estate agent as and when documentation is ready to be forwarded to the buyer.
Generally you won’t have a great deal of contact from the estate agent until closer to completion or unless you require further information related to the purchase which may come from the Notaire.
Information can be found on the French Notaire website www.notaires.fr
English translation is available on the website.