Monday, February 11, 2013

Sellers told to cut prices by up to 15%

A leading French estate agency group has recently written to its vendors telling them to cut their asking prices by 5-15% if they want to sell in a reasonable timescale.

How’s that for proof that we are definitely in a ‘buyers’ market’ here in France.

Bernard Cadeau, President of Orpi Immobilier  which has agencies across France, particularly here in Brittany,  was speaking  as banks moved yet again to boost the market by dropping mortgage rates to their lowest since ‘the Liberation’ meaning that a 20 year fixed loan of €200,000 costs you €20,000 less now than it did at the beginning of December last year.

Mr Cadeau said, that in a recent test, cutting prices by 3% had seen the delay in getting a sale fall by 17% and increase their sales across the test by 20%.  He also highlighted the movement between asking prices and final selling prices for properties which grew from 7% at the start of 2012 to 15% by the end of the year.

It’s time to grab a bargain ….. and as on average our property finding network saved between 16-18% on advertised asking prices last year we can save you even more money just because we are here on the ground and understand the market on a local basis……….

….. and having recently negotiated a massive 36% off asking price for a recent client, sometimes we even surprise ourselves.

1 comment:

  1. Hi Stephen. I wonder if Orpi's clients will listen to M. Cadeau. Sellers whose properties have been on the market for more than a few months would indeed do well to lower the asking price.They should also take fresh (and better!) photos and not show winter photos in summer and vice versa, but that is still too much to ask, both of most French agents and their clients :-) Here in the prime areas of Provence asking prices are mostly staying steady, but they're finally becoming more negotiable. Some sellers simply aren't in a hurry to sell but I tend to be able to negotiate a 10 - 20% reduction for my clients. Well done on the 36% reduction, that's very impressive. I have three searches on at the moment, it's starting to get busy in the Luberon and Aix area! Spring has come early.

    A plus,