Buying a Property in France-Why are French Estate Agents so Expensive?

Buying a Property in France-Why are French Estate Agents so Expensive?

France is a popular holiday destination among Europeans. Life seems slower in the country and the climate is one of the best in Europe. This has led to an increase in the number of people who want to buy a house in France. You may have identified an ideal piece of property in the country at what you considered a reasonable price but nearly changed your mind when the estate agent’ fee was quoted.

The fee is considerably higher compared to other countries.

Only 50% of the French population uses estate agents to purchase property but foreigners tend to rely on them. The agent’s fee can increase the cost of your purchase by a significant percentage.

There are various factors that determine the amount French agents charge property buyers.

Lack of Government Control If you plan to buy a house in France, it is important to note that the government has no control over the fees estate agents charge. The law requires agents to post all their charges in their premises. This makes it easy for potential buyers to know exactly what they are getting themselves into. The fees can range from 5% to 10%. French estate agents use a sliding scale to determine their fees. A higher fee is charged for cheaper properties. If you are purchasing an expensive property, the agent may be more willing to negotiate the fee. The fees are paid by buyers or vendors but the cost can be shared between the two. The vendor pays if the agent fee is part of the purchase price.

Fewer Transactions There are less property transactions in France compared to other European countries like the UK. The real estate agents have to take advantage of the few transactions that they make by charging high fees. They have to compensate for the small volumes with higher fees.

Time Consuming Viewings French property tends to be dispersed over large areas compared to other countries. This means that it would take an estate agent a few hours to drive out to showcase a piece of property. Viewings are time consuming in France and agents consider this a good reason to charge high fees. They have to spend a lot of time with the sellers and buyers and this increases their overhead.

Additional Agent Roles You may have to pay more to buy a house in France because the estate agents have additional roles.

They act as advisers, which is beyond the traditional role of an estate agent. In countries like the United Kingdom, agents pass on satisfactory purchase offers to a solicitor. Once they do this, their work is done. The situation is different in France because there are no solicitors to offer legal advice to property buyers and sellers. French estate agents have to provide legal advice to their clients. The law requires them to offer objective and informative legal advice to every individual who wants to buy a house in France. Buyers are guided through the basic legal formalities and made aware of what to expect. The high fees are considered necessary to compensate for this additional role.