Your videos are incredible. We are a British couple living in Canada about start our journey to Chateau ownership at the end of this year - your vids are so informative
I think the reasons for such a difference in the prices paid for second houses, is that foreigners come with more disposable money ready to buy and they typically come from countries where prices are higher, so when they find a property they like they just buy it without bartering, they think it's a bargain. Locals may know different. The agents will also tell them things like "they have other interested buyers", "the property won't stay long in the market", etc so to get the sale closed. If the foreign buyers don't speak the language or don't have ilimited time to look around, they may be more inclined to pay the asking price for a property they like. Locals will take their time and research more and longer. Also foreigners tend to buy through agents who speak their language, and loose out on a wider range of properties. Same happens in other countries such as Spain and Portugal, where foreigners pay more than locals. The problem with paying above the average / overpaying is that if they need to sell in the future they may have problems getting all their money back. But in a rising market this won't be much of a problem.
Thank you for your input, but as an agency here in France I can honestly say that 90% of agencies price properties to the local market value, they have every interest not to over price. But even if we did accept that hypothesis, 30% is massively over priced, 5-10% would be arguable, but 30!!!. I think possibly it might be more down to unexperienced and under trained commercial agents for some of the big "mandataire" groups and so-called English agencies, that don't evaluate a property when they take it on, they just ask the owner how much he wants ! Or a 2nd possibility is the promoters, if one came in and did 1-3 luxury housing projects in the area, then this can throw the figures off for a year, but once again, 30% is massive!
@@FrenchEstateAgent I didn't say agencies overvalue properties for foreign buyers, that would be impossible and illegal in France, obviously agencies value ALL properties for the current market. But it's a fact that most foreign buyers will be more willing to pay the asking price without much negotiation, whereas locals will negotiate and research more and longer, hence they end up paying less.
@@donnacosta5633 Fair comment, but 30% ?? In French real estate you can't offer over an advertised asking price (accept certain rare situations), so in order for the buyers to offer that much, it means it is being advertised for at least that sum. And don't forget these are averages!
Your videos are incredible. We are a British couple living in Canada about start our journey to Chateau ownership at the end of this year - your vids are so informative
Thank you, I do my best
I think the reasons for such a difference in the prices paid for second houses, is that foreigners come with more disposable money ready to buy and they typically come from countries where prices are higher, so when they find a property they like they just buy it without bartering, they think it's a bargain. Locals may know different.
The agents will also tell them things like "they have other interested buyers", "the property won't stay long in the market", etc so to get the sale closed. If the foreign buyers don't speak the language or don't have ilimited time to look around, they may be more inclined to pay the asking price for a property they like. Locals will take their time and research more and longer.
Also foreigners tend to buy through agents who speak their language, and loose out on a wider range of properties.
Same happens in other countries such as Spain and Portugal, where foreigners pay more than locals.
The problem with paying above the average / overpaying is that if they need to sell in the future they may have problems getting all their money back. But in a rising market this won't be much of a problem.
Thank you for your input, but as an agency here in France I can honestly say that 90% of agencies price properties to the local market value, they have every interest not to over price. But even if we did accept that hypothesis, 30% is massively over priced, 5-10% would be arguable, but 30!!!. I think possibly it might be more down to unexperienced and under trained commercial agents for some of the big "mandataire" groups and so-called English agencies, that don't evaluate a property when they take it on, they just ask the owner how much he wants ! Or a 2nd possibility is the promoters, if one came in and did 1-3 luxury housing projects in the area, then this can throw the figures off for a year, but once again, 30% is massive!
@@FrenchEstateAgent I didn't say agencies overvalue properties for foreign buyers, that would be impossible and illegal in France, obviously agencies value ALL properties for the current market.
But it's a fact that most foreign buyers will be more willing to pay the asking price without much negotiation, whereas locals will negotiate and research more and longer, hence they end up paying less.
@@donnacosta5633 Fair comment, but 30% ?? In French real estate you can't offer over an advertised asking price (accept certain rare situations), so in order for the buyers to offer that much, it means it is being advertised for at least that sum. And don't forget these are averages!
Great video, very informative thank you
The department you pointed out on the map as Creuse was actually Nievre. Interesting stats 👍
Especially as I name it as Nievre just a bit later.... oh well.
Very interesting. Food for thought. Looking forward to a followup. Just a little curious, why are you wearing a coat indoors? Did the heating break?
No, Just a body warmer and between outside appointments
I thought they didn't want to be in the EU.....
Some do, but many don't
@@FrenchEstateAgent Having the cake AND eating it...