How does a sale between private individuals work?
Property Appraisal
Before putting your house or apartment up for sale, it’s essential to appraise it accurately to set a competitive asking price. Today, with the advancement of computer tools and apps, it seems easy to get an online estimate in just three clicks based on the property’s characteristics. However, you risk getting a very wide price range, which is based on general characteristics and cannot take into account all the details of your property.
An online estimate can therefore be a first step, but to ensure it is accurate and reliable, working with a local real estate agent who has in-depth knowledge of the local market is often the best option. The agent will also be able to tell you whether your property aligns with current buyer demand.
How to Write an Attractive Listing for a Private Sale
You can choose to sell your property on your own (private sale) or work with a real estate agent. In either case, posting a detailed listing with high-quality photos is crucial. It should highlight the property’s key features and its potential. To write an effective real estate listing, it’s important to accurately describe your home, including the number of rooms, the square footage, the number of bedrooms, the property’s overall condition and orientation, the floor level, and whether there is an elevator and a live-in caretaker. Don’t forget to highlight your apartment’s strengths, such as a balcony, a storage unit, or a parking space; describe the view if it overlooks a courtyard or a garden; and provide details about thelocation of your property and the neighborhood—keeping in mind that your apartment will attract more attention if it’s close to shops, public transportation, or a school. The most important thing is to set yourself apart from similar listings. But to make potential buyers fall in love with your listing, taking high-quality photos to accompany your ad is essential.
Taking photos of the property
To take great photos, it’s best to have a professional do them. Before putting your property up for sale, make sure it’s in good condition—this may require minor repairs, a deep cleaning, and highlighting its best features through home staging. A well-presented property can attract the interest of potential buyers.
Organizing Visits
Once you have interested potential buyers, you’ll need to schedule showings. Be prepared to answer their questions and negotiate the price. Be open to discussion to reach a mutually beneficial agreement.
Offer to Purchase and Negotiations Between Private Individuals
When a buyer is ready to proceed with the purchase, they will submit a promise to purchase in the form of a letter of offer. Once this is accepted, you can begin the process of entering into a preliminary sales agreement. This involves drafting a detailed preliminary sales agreement that specifies the terms and conditions of the transaction, including the price, the closing date, and other specific conditions, particularly any conditions precedent related to financing, if applicable. This document is generally prepared by a notary, who can verify that everything is in order; however, it is possible for private individuals to sign this preliminary contract as a private agreement.
What documents are required for a sale between private individuals?
In Paris, most properties are condominiums. When signing the preliminary sales agreement, the seller must provide several documents:
- Title Deed: This document proves that you are indeed the owner of the property;
- The technical inspection file: It includes reports on energy efficiency, asbestos, lead, termite infestation, and other inspections required by law, as well as inspections of the common areas;
- Minutes of the general meeting;
- Expense statements;
- The condominium bylaws and any amendments thereto;
- The building maintenance log;
- Certificate of Compliance: It certifies that the property complies with building and zoning codes;
- Receipts for property taxes and other charges: To prove that you are current on your payments;
- Birth certificate or family register: If the seller is an individual;
- The Kbis extract: If the seller is a legal entity (a company).
Signing a Preliminary Sales Agreement Between Private Parties
Once the documents are in order, the parties can sign the preliminary sales agreement. This document commits both parties to proceeding with the transaction. Generally, the buyer must pay a deposit—usually between 5 and 10 percent of the sale price—at this stage.
After the preliminary sales agreement is signed, a statutory cooling-off period of 10 days generally applies. Once this period has expired, the notary will prepare the final deed of sale, known as the authentic deed, which will be signed by the buyer and the seller. Once this deed is signed, ownership is officially transferred to the buyer, and the transaction is complete.
