An « opinion of value » or « property estimate » is a price range often given verbally by an estate agent or solicitor, or by means of a simple letter or commercial presentation.
This document is not binding on the professional, who simply gives an indication of the price that could be asked when selling the property, taking into account the current state of the market and local supply and demand. The opinion of value (or estimate) is free or inexpensive. It is first and foremost an opinion.
A property valuation is a legally binding document based on precise calculations. It is a "secure" value. The analysis is based on the different aspects of the property and on economic, geographical, technical and legal points, while also analysing the market and looking for similar sales comparisons. It is drawn up in accordance with the standards of the European Valuation Charter.
The appraisal is entrusted to an expert who assumes responsibility and is insured as such.
The report consists of an assessment of the market value of a property at a given point in time. It is binding, unlike an opinion of value. It is therefore taken into account in many administrative and tax procedures, as it gives the property a legal value. There is a charge for this service.
- If you are applying for a bridging loan or another bank guarantee
- If the property is part of an inheritance or inter vivos distribution
- In the case of a divorce or ending of a joint property estate
- In the case of exiting a coparcenary or a share transfer for a French property investment partnership (Société Civile Immobilière)
- To create an accurate tax statement and the property tax statement
- To buy or sell a property
- To sell a property through home reversion
- To understand the rental value of a property or renegotiate it
- In the case of setting an eviction indemnity for commercial premises
- Etc...
The price of a property valuation depends on the type of property (a studio flat won’t be the same price as a large house), its location (in a rural or mountainous area), the travel time for the person doing the valuation, the complexity of the property (if there are multiple easements within the property boundaries, for example) and the services to be provided. For an accurate estimate of the cost of your valuation, please request a quote.
You will need to provide as many documents as you have in your possession about your property so the person doing the valuation can do the best job possible. This could include the title deed, leasehold title, co-ownership fee document, co-ownership rules, plans, building permits and notarised inheritance deeds.
Due to the new French « Climate and Resilience » law (Act no. 2021-1104 of 22 August 2021 to combat climate change), you are strongly advised to get an energy audit done.
Article 1964 of the French Code Civil states: « An aleatory contract is a reciprocal agreement where an uncertain event determines the effects, both in terms of benefits and losses, either for all the parties, or for one or more of them. »
- Occupied home reversion
The vendor, also known as the « reversion occupier », retains the usage and habitation right to the property (or a usufruct) for life or, in rare cases, for a limited period of time. This reversion occupier receives a cash lump sum and a monthly income from the purchaser (« reversion provider ») and continues living in their home until their death. They can also decide to move out of their home to move into a care home, for example. This is what is known as « early vacancy » and the monthly income is then re-evaluated. The reversion provider then takes possession of the property.
- Unoccupied home reversion
The vendor or « reversion occupier » puts a property up for sale that is not their primary residence and is unoccupied (second home or investment property). The reversion occupier receives a cash lump sum and a monthly income that the purchaser or « reversion provider » commits to paying them until their death. In the case of unoccupied home reversion, the reversion provider takes immediate possession of their asset.
- Mixed life annuity
The mixed life annuity is a combination of the free life annuity and the occupied life annuity. Part of a property can be sold as an occupied life annuity, while another floor of the property or another outbuilding is sold unoccupied.
- Bare ownership
It is becoming more common for retired people to sell the bare ownership of their property. It is an alternative to home reversion. During a bare ownership sale, the vendor receive the full sale price on the day of signature of the authentic deed of sale and will not receive home reversion income. They can however live in the property until their death. There are a few different options however: Sale of the bare ownership with retained status of usufructuary, and sale of the bare ownership with usage and habitation rights. Please get in touch if you require any advice.