While stone prices are falling throughout France, taking an interest in real estate presented for sale through auctions can prove to be a good opportunity. First, the prices displayed are attractive, with discounts ranging from 10 to 20% compared to the estimate. In addition, at this time when the ranks of buyers have thinned, competition may be less strong. This can constitute a favorable context for trying to obtain a property at a reasonable price. Different types of auctions exist.
The first, and best known, are those organized by notaries. “This concerns, among other things, property without heirs and belonging to the State. This transparent sales method also constitutes an effective solution for resolving disagreements over the price of a property held in joint ownership (disagreement between heirs, divorces)”, explains Vanessa Roulland-Ficholle, notary in Boulogne-Billancourt (Hauts-de-Seine).
The “menu” of each session, with several dozen goods presented, is announced online, from three weeks to one month before the date. This period must be used to consult the “specifications” of the property accessible online and to read the documents (description, real estate diagnostics, etc.), consult your bank and make an appointment for a visit (often collective) places to the slots offered.
Irreversible process
To be authorized to place the bids yourself on the day of the sale, you must present yourself, before the start of the session, with an identity document and a simple so-called “consignment” check, an amount equal to approximately 20% of the starting price. If this sum exceeds 250,000 euros, a bank check is requested. There are other channels for bidding: through your notary present in the room, by telephone or online, using a virtual room. These sales are usually quick and last a few minutes.
Please note, this sales process is irreversible: “Once the award has been made, the sale becomes final and an authentic deed is drawn up by the notary. There is no sales agreement, nor even a reflection or withdrawal period, and above all no suspensive condition for obtaining credit”recalls Me Roulland-Ficholle. Unless there is a possible overbidding occurring within ten working days from the date of the sale, the person who won the bid has sixty days to pay the amount. Beyond this date, late payment penalties apply.
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