What are the costs of real estate diagnostics?
Real estate diagnostics aim to inform the potential buyer about the condition of the property. Some diagnostics are mandatory for all properties, while others are required only in specific cases. They must be carried out by professionals and are at the seller's expense. Diagnostics are essential for the signing of the final deed of sale and include:
- lead diagnosis.
- termite diagnosis.
- energy performance assessment.
- asbestos condition.
- condition of the interior gas equipment.
- condition of the interior electrical installation.
- state of risk and pollution assessments for the property.
- condition of non-collective sanitation systems.
What are the costs to be borne by the buyer?
Notary fees are paid by the buyer of the property. The purchase of the property is naturally made by the buyer who generally pays, at the same time, the so-called "notary fees."
These famous fees include transfer duties, notary fees, and miscellaneous expenses, calculated based on the property's age. They will be between 7 and 8% of the property's price in old real estate and 2 to 3% in new construction.
What about taxes? (property tax, housing tax, etc.)
Property tax is due for the entire year by the owner on January 1st of the year.
If you sell or buy a property during the year, the seller (owner on January 1st) remains solely liable for the entire property tax for the year. Thus, the property tax will be established in their name.
However, during the purchase, the sale deed may include an agreement between the seller and the buyer on a "pro-rata temporis" distribution of the tax payment. This private agreement can distribute the tax amount between the buyer and the seller based on the transaction date and is usually included in the compromise or the sale deed.
Practically, the housing tax is exclusively the responsibility of the person living in the dwelling on January 1st. It is not customary to plan for a sharing of this tax in compromises. Thus, if a sale occurs on January 15th, the seller remains fully liable for the tax for the entire year. The buyer, therefore, does not have any part of this tax to reimburse them.
When is a seller subject to capital gains tax?
Capital gains realized by individuals and partnerships (companies not subject to corporate tax that carry out a non-professional activity) are subject to a flat-rate tax at the time of disposal:
- of real estate, whether built or unbuilt (apartment, house, or land...);
- of real property rights (usufruct, bare ownership...);
- of shares in real estate companies.
The disposal can be a sale but also an exchange of goods, a distribution, or a contribution. The capital gain is the difference between the sale price and the acquisition price. Various deductions can be applied to the obtained amount (deductions for the holding period, temporary exceptional deductions). After these deductions, capital gains are subject to:
- income tax at a rate of 19%;
- social levies CSG (9.9%), CRDS (0.5%), social levy (4.5%), additional contribution "solidarity autonomy" to the social levy (0.3%) and solidarity levy (2%) for a total rate of 17.2%.
I have an ongoing loan on my property for sale. What are the specifics?
If you plan to sell your property before the end of the loan term, you indeed have the option to do so, but you will have to make an early repayment of the loan following the sale of the property.
This early repayment notably involves fees, as you have agreed on a certain repayment duration with the bank, which will therefore apply penalties for agreeing to stop financing the property.
Who pays the transfer fees in the case of a sale in a condominium?
In a real estate transaction involving a condominium property, the syndicate charges transfer fees to carry out the necessary procedures for the change of ownership.
It is the seller who must pay this sum at the time of the sale.
I am selling my property through an agency. How do you explain the net seller price?
The net seller price represents the amount you will actually receive once your real estate is sold.
But this is not the amount the buyer will pay. Indeed, a number of fees are added to the sale price including the real estate agency fees according to the applied rate.
What are the benefits of using a professional to appraise and sell my property?
1) To get a fair evaluation of the sale price
A real estate agent can better evaluate the real value of your property based on its characteristics, condition, and location. The real estate agent has access to the latest real sale prices through various databases, not just the prices listed in ads. Meet our agency!
2) To benefit from professional services
A real estate agent knows all the steps of a real estate transaction and can advise you at any time. They take care of preparing the sales file, the real estate ad, and advertising for your property.
3) To distribute your sale ad more widely
With a real estate agency, your ad will be distributed on numerous sites, especially those reserved for professionals, the agency's website and showcase, and possibly on flyers distributed in your neighborhood or magazines published by the agency.
Moreover, the agency may operate with a shared file system within its network or via the FICHIER AMEPI. For you, nothing changes: you remain in contact with only one interlocutor, but your ad is offered by several agencies, therefore seen by more potential buyers.
4) To manage contacts and future buyers
Selling your property requires a lot of availability. If you do not wish to handle calls and visits from future buyers, it is better to go through a real estate agency. By choosing a professional, you also avoid the negotiation phases.
5) For a secure transaction
Being accompanied by a real estate agent throughout the sales process is very reassuring and a guarantee to comply with the law on real estate transactions and not to have any bad surprises later on.
