France Real Estate Blog

17-11-2008

 French System of Real Estate Market

French System of Real Estate Market
The state of France real estate is fascinating yet puzzling, although consumers are usually given more choices to select from. Real
estate companies in the country embody more than fifty percent of the properties in the market for sale. The other half seem to be peer sales, which is equivalent to the US FSBOs where sellers find the buyers directly themselves without agent aid. A certain site charges a small amount to list a certain property, which is comparable to a classified advertising prototype. Presently, the Internet has created a more competent market place for the “P-to-P” sales, solidly establishing two definite markets for both sellers and buyers, regardless of whether they are agents or not.

The great majority of French agents work independently. Representatives of the real estate industry in France offer consumers more choice with the practice of listings, both exclusive and simple. Exclusive listings are held to a single real estate agent. While simple listings are handled by a number of agents, which could all have different prices listed. However, some information in the Internet may tend to mixed-up the prices brought about by separate listings. Real estate agents who have exclusive listings tend to limit displaying full information and complete property descriptions, even pictures. It somehow barred consumers from having admission to a full list of houses for sale on the market, and there are no patterns as to how listings are exhibited. Agents should build their relationship with the seller and not fear exposure which is obviously what some tend to do. The five trade associations that have impact in the French real estate business is another element obscuring the potentials of the market of real estate. It generates a political challenge for an organized effort. The real estate portal has the most number of property listings online. It leads the online real estate market and applies charges to agents for posts made.

In the end, there are many new business models materializing in France. Many are using the Internet advances and technology centered agents that utilize these tools to generate a more effective and efficient lower cost services in contrast to the customary six percent charges. Transactions are indeed expensive, not to mention the eight percent government fee including escrow charges and commission. However, the combination of costs verifies the potency of the real estate market.


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