Top 10 Tips for buying a property in France
We at French Mortgage Advice transact loans with all of the French Banks. Listed below are the most frequently offered loans available to Non-Resident Purchasers.
1. Choose a good mortgage broker
We can’t stress this point strongly enough. Not only should they be dealing with all of the major banks but they should be able to provide you with a comprehensive service.
On the checklist should be No fees (French banks pay the broker a commission this should cover their fees). Fluent in French, if your broker is dealing directly with Estate Agents, Banks, Insurance Companies, Notaires and Vendors who are all French then it stands to reason your broker should not only speak French but should have an in depth knowledge of the Tax and Legal system governing your purchase. When you talk to your broker they should be able to deal with your enquiries without having to go and ask a third party for the answer so don’t be frightened to ask your broker about their qualifications and experience.
2. Choose the right mortgage for you
French Mortgages are not really suitable to be replaced every 2 or 3 years due to either early redemption penalties in the case of fixed rate products or just the Notaires fees involved in changing from one bank to another.
Feel free to ask your broker about the different options available to you. The right mortgage is more a case of making the right choice in understanding the product than which scheme offers the lowest introductory rate which often lasts only a few months.
Spend time talking to your broker about the various products on offer.
3. Buy the best properties available
The best properties are never on the market for very long sometimes only a matter of hours. To be in a position to be able to act quickly you will need to have done all of the preliminary work regarding obtaining your mortgage and be in a position to complete the purchase with the minimum of delay. This can only happen if you have already submitted your financial profile to the bank and they have agreed your loan. Ideally providing you with written evidence. So try to be a step ahead of any competition for the best properties.
4. Don’t be Charged for services that are already taken care of
Don’t use third party property agents who are doing nothing except taking a commission, or legal agents who are charging you for the work a good broker would include in their normal service. Generally avoid a service based in your home country that is really only sometimes very expensive hand holding. The people who truly do the work when you buy a property are the Broker, the Estate Agent and the Notaire. Avoid anyone who is basically piggy backing and charging you for it.
5. Put in the leg work
There is absolutely no substitute for this. You can only make a valued choice when you have taking the time to make comparisons between the different properties available in your chosen region. You literally have to spend some time looking at properties to get a real feel of what represents good value and what does not. Please do not rush in and make an offer for the first property you have seen. Quite often you will find the same property advertised at different prices in different agencies. This is due to the agents commission being charged which could literally be anything between 2.5% to 10%. There is no law governing what an agent can charge in France.
6. Check how long the property has been on the market
Your first question regarding a potentially suitable property should probably be” How long has the property been on the market?”
Once you know the answer to this question your next question should be “What price did it initially go on the market at? “ If it was placed on the market 6 months ago and the price is still the same even though it hasn’t sold it is probably overpriced and there should be room to negotiate. As I mentioned earlier the best properties are sometime only the market for hours!
7. Put your French head on
If you want the process to go smoothly and avoid yourself becoming frustrated then you should put your French head on. What do I mean by this? Two things really.
First don’t allow yourself to be treated any differently than a French buyer would be. Ensure that all the protection you should receive under French law to protect you is indeed afforded to you and don’t accept any excuses or reason why any of the protective clauses should be left out of the pre-sale agreement because a French person wouldn’t.
Secondly, try to avoid making comparisons between the system governing property transactions in your home country and those that apply in France. This will only lead to frustration. Just try to remind yourself which country it is that your are buying in.
If you are using a competent broker they will fully explain the reasons why this or that is happening to help you t understand the process. The French system is very clear and concise with good protection for both the vendor and the buyer.
8. Get the best exchange rate
Using a good currency broker will not only save you costs on the bank charges associated with each deal you place but will also enable you to obtain the best exchange rates. Many good currency brokers allow you book your exchange for the next 12 months. This can be useful when preparing your budget in advance.
9. Your new best Friend?
Bear in mind that the agent selling you the property is probably going to earn somewhere between 5% and 7% of the transaction. So don’t be surprised if they seem like the nicest person you have ever met. It is sound advice though to generally not use the services they will recommend in connection with the purchase i.e. Mortgage Broker, Surveyor, Builder to verify the structure etc. Try to use someone who is independent and you know has no financial interest in if you buy this property or another completely different one. Usually using good independent broker to whom it makes no difference which property you buy is the best solution.
10. Choose a good mortgage broker
Déjà vu, that’s because it really is that important.
At French Mortgage Advice we will be happy to advise you on any aspect of your prospective purchase and bear in mind we have a team of specialist advisers, Lawyers, Accountants, Surveyors, Insurers on call regardless of how complex an issue you need dealing all used to dealing with international clients.
So call us now for informal chat 00 33 1 34 74 91 64
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