1) When I put my house up for sale, the Notary I hired gave me an appraisal of the property; How reliable is that appraisal ?
Real estate value appraisal is not an exact science; however, notaries have an established method of coming as close as possible to the actual property value.
The key to this notarial real estate appraisal tool, unlike anything else of its kind, is in its national database that was developed over several years and contains more than 6,000,000 entries; This database is a fantastic source for researching comparable properties within a given sector, city, neighbourhood, or street, for a particular size, or even for a given construction period, all for a timeframe that is as close as possible to the date of the appraisal.
Additionally, the Notary or the Appraisal Clerk will try to come close to the actual price by using several evaluation methods, each adapted to the kind of property being appraised. These methods are all used while taking into consideration the surface area and the condition of the property, which will have been verified ahead of time. The socio-economic factors of the property being appraised, as well as its city planning situation are also taken into account.
The wealth of information contained in the real estate database, the appropriateness of the methods used, and of course the Notary's knowledge of the market are what give notarial appraisals a universally recognized, optimal degree of reliability.
2) Why should I choose a Notary to be my broker ?
Real estate brokering is one of the traditional activities of notaries. The notary therefore can, and has the explicit legal right to be a real estate broker.
The notary's specialized knowledge in the field of real estate law, property appraisal, city planning, and real estate tax make him or her a crucial contact for buying and selling real estate.
Notaries must also uphold the values of confidentiality and dignity required of all public officers. In performing their duties, and particularly their brokering activities, notaries must be independent, impartial, and objective, thus guaranteeing all parties the greatest amount of fairness in their dealings.
3) How is the notary compensated when acting as a broker ?
The parties come to an agreement in the form of a written mandate in which the Notary's right to collect a brokering fee is stipulated. This fee is strictly regulated and established by decree (Decree no. 2001-373 of April 27, 2001).
It has been established as follows :
From 0 to 45,735.00 euros: 5 %
Over 45,735.00 euros: 2.5 %
Plus VAT at the current rate.
Example 1: For a sale price of 100,000.00 euros : The brokering fees would be 3,643.38 euros before tax, or 4,357.48 euros including tax (with a VAT rate of 19.6%), or 4.357% of the sale price.
Example 2 : For a sale price of 100,000.00 euros 200.000.00 € : The brokering fees would be 6,143.38 euros before tax, or 7,347.48 euros including tax (with a VAT rate of 19.6%), or 3.674% of the sale price.
Example 3 : For a sale price of 100,000.00 euros 300.000.00 € : The brokering fees would be 8,643.38 euros before tax, or 10,337.48 euros including tax (with a VAT rate of 19.6%), or 3.446% of the sale price.
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