Real Estate Seller's Guide

November 29, 2022 7-minute read
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Guide du vendeur immobilier

If you're planning to sell your apartment, house, or parking space, our real estate agency in Paris's 16th arrondissement CENTURY 21 Auteuil Real Estate offers you our seller’s guide to walk you through, step by step, the information you need to successfully complete your sale in a simple and efficient manner. You can find detailed articles covering each step on our website, new-auteuil-immobilier.fr, in the “News” section.

Real Estate Seller's Guide 

Real Estate Sales

If you are a homeowner and wish to sell your property, this is a major step, and the sales process must be carefully prepared to ensure it proceeds under the best possible conditions. From the appraisal to the signing of the notarized deed of sale at the notary’s office, each stage of the sale is important and involves certain obligations that require the expertise of a professional.

Selling with or without a broker

Of course, there are several options available to you when you decide to put your house or apartment up for sale. You can choose to Sell on your own, person-to-person, keeping in mind that this may take a lot of time and require you to handle every step of the sales process, or you can choose to delegate and trust a real estate agency to ensure the success of your real estate project. Their market knowledge for appraising your property, their legal and financial expertise, and their client database are major advantages to consider as you move forward.

Real Estate Appraisal

There are various ways to get your property appraised; some are free, while others require a fee. You can also get an estimate yourself online in just three clicks. A real estate appraisal is a crucial step—and, above all, the most important step—in any home-selling process, and it should not be taken lightly. Keep in mind that buyers are often very well-informed about real estate market prices. You should therefore do everything you can to ensure you sell your property quickly and at the best price.
Only a real estate agency can add value to your search.
Since price is a key factor in whether potential buyers want to visit your property, the appraisal must be conducted on-site by a professional in a precise and methodical manner.

Sales Agreement

You can choose from different types of listings; whether it’s a standard or exclusive listing, the sales agreement is a legally binding contract that binds you to a real estate agency.  It is a contract between the seller and the real estate agency that defines the property for sale, its selling price, the amount of the agency’s commission, and who will pay it (the seller or the buyer).  By signing a sales agreement, you delegate, among other things, the authority to represent you throughout the entire process of selling your property. Instead, opt for a exclusive mandate, which is naturally more motivating for the professional, and you’ll avoid the pitfall of the simple power of attorney by making your property seem commonplace, if you're thinking of listing it with multiple real estate agencies.

Real Estate Inspections

When you put your house, apartment, or parking space up for sale, you must provide certain essential documents. In particular, you will need to prepare the Real Estate Technical Inspections. These reports are required and are intended to inform the buyer about the property they wish to purchase. This will help you avoid liability for hidden defects. There are 8 real estate inspections required for a sale: the Carrez Law, the parasitic state, theasbestos, the lead, the gas, theelectricity, theERP and the DPE. The Energy Performance Certificate (DPE) is an important assessment during a sale. Its purpose is to evaluate energy consumption and greenhouse gas emissions by assigning a rating, which will help determine whether it is necessary to carry out a energy audit of your property, with the goal of eliminating energy-inefficient homes by requiring sellers to carry out renovation work.

Real Estate Listing

A real estate listing is a key step in the sales process, as it serves as a showcase for your property. It must be appealing to buyers and stand out from the many listings posted on various real estate websites. To give yourself the best possible chance of selling your apartment, the photos must be high-quality and taken by a professional, and the listing description must be detailed and compelling enough to showcase your property.

Real Estate Negotiation

Real estate negotiation is a common step in the sales process that occurs when a buyer is interested in purchasing your property. Once the buyer has decided to purchase your house or apartment, they may make you a purchase offer, which may be equal to or lower than the price set by the seller. From the buyer’s perspective, real estate negotiations are prepared before the purchase offer is made. As the seller, you are free to accept the offer, reject it, or enter into negotiations.

Pledge and Sales Agreement

If you're satisfied with the price offered and you Accept the offer, the buyer is contractually obligated to complete the transaction by signing of a preliminary sales agreement or a sales agreement to legally finalize the sale. This is a preliminary sales agreement signed prior to the execution of the notarized deed at the notary’s office, in which both parties—the seller and the buyer—agree on the terms of the real estate sale.

Bill of Sale

The signing of thenotarized deed of sale is the contract that officially and definitively confirms all the terms of the sale of your property, including the real estate agency’s commission, if applicable, and constitutes the final and most important step in the sales process. The deed of sale is the document that formalizes the transaction between the buyer and the seller, triggering, in particular, the transfer of ownership upon the handover of the keys to the buyer and the payment for the property.

Notary fees

To be paid by the buyer, the notary fees must be paid on the day the notarized deed of sale is signed. These costs include both the notary’s fees and the various taxes owed to the state, the department, and the municipality, and amount to an average of 7.5 to 8% of a property’s sale price.

Area of a Property

It is essential to know the exact square footage of the property you wish to put up for sale; this calculation is governed by the Carrez Law, which applies to all real estate sales in condominium, except when selling a house. The Carrez Area is a technical assessment, conducted by a professional, that certifies the private living area of your property.

Real Estate Appreciation

Capital gains on the sale of real estate refer to the difference between the purchase price (plus certain expenses) and the sale price of a property. If the difference between the two prices is positive, the gain realized on the resale is generally subject to tax, unless an exemption applies. The capital gains tax on real estate is not collected as part of the income tax return but is calculated and collected at the time the deed of sale is signed. Capital gains tax consists of the capital gain itself, taxed at 19%, and the CSG, taxed at 17.2%. Depending on the length of ownership, you may be eligible for tax deductions. In special cases, such as the inheritance or gift of real estate, the capital gains tax is based on the declared value of the property.

Real Estate Taxation

When you have sold your property and wish to rent it out, you should be aware that rental income is taxable. The Finance Act includes various measures designed to support the real estate sector and provides for a wide range of tax incentives aimed at significantly reducing the owner’s tax burden. In particular, the Cosse program—known as “affordable rental”—which is in effect through December 31, 2024, offers a landlord a tax reduction that is all the greater the lower the rent is. It is therefore possible to pay less in taxes while investing in real estate.

Estate Planning and Gifts

Real estate assets consist of properties that, as the name implies, cannot be moved, and also include all financial instruments held that make up these assets. When donating real estate, each parent is entitled to a tax exemption of €100,000 per child on the value of the property being transferred, renewable every 15 years, without paying gift tax.  However, the gift must be executed before a notary and incurs fees based on the value of the property in full ownership.

For any additional information, our team is here to answer all your questions about your plans to buy or sell real estate. Please feel free to contact our two real estate agencies, CENTURY 21 Auteuil Immobilier and CENTURY 21 Auteuil Seine, by phone at 01 42 15 16 21 or 01 56 07 16 21, or by email: auteuil@century21.fr or auteuilseine@century21.fr

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