Estimating a property

From the estimate of the property to the signing of the deed of sale, the net seller price is incremented by various taxes and commissions. To properly identify them, the sale price must be announced to the purchaser in two ways: in “Net Seller Price” or in “ISP Price” (including agency fees).

The net seller price corresponds to what the owner will actually receive for the sale of his property.

Agency fees are not regulated by law: agents can set them freely, usually between 5% and 8% of the net selling price. In most cases, they are declining as the price of the property rises.

The notary fee is added to the ISP price to determine what the purchaser will actually pay. Indeed, the acquisition rights (as it is more accurate to call the notary’s fees) are the responsibility of the purchaser, except in exceptional cases.

The total price to be paid is usually calculated by counting agency fees and acquisition costs. Acquisition costs are essentially incompressible. They consist of taxes, taxes and fees regulated by law: it is impossible to avoid them.

What is market value? How is it calculated? What’s the point of it?

The market value is the price one can expect to obtain from a property during a hypothetical resale. This is therefore an amount indexed to market prices, based on an estimate.

The market value is defined by the General Accounting Plan (GMP). it is therefore an accounting standard of legal value.

It is defined in section 310.1.11 of the PGC, as follows:

“The market value is the amount that could be obtained, on the closing date, from the sale of an asset in a transaction concluded on normal market terms, net of exit costs. “

It is therefore a price at which a property could be sold, calculated from market prices, under so-called normal conditions.

As far as real estate is concerned, it is known to have two main uses. The first is to calculate a replacement allowance when a property is destroyed. destruction

On the tax side, the market value is used to assess a taxpayer’s wealth. The goal is to prevent individuals from underestimating the value of their real estate when they return. The control bodies then compare the declared value to the market value.

What you need to know

Notion of habitable and useful surfaces

The UTILE surface is defined by the building and housing code. Article R 331-10, dating from 1995, defines it as:

“The useful area to be taken into account is equal to the living area of the dwelling as defined in Article R. 111-2 of this code increased by half the surface area of the annexes under the conditions set by the Minister of Housing’s decree.

SOIT: living space – 50% of the area of private annexes, originally used to facilitate the calculation of assisted rents (in public housing, local housing, etc.).

The HABITABLE surface (Boutin law) is also defined by the housing and construction code. It is equal to the floor area built, after deducting the surfaces occupied by walls, partitions, steps and stairwells, sheaths, door and window openings. It can be calculated by the owner, but it is possible to have it carried out by a professional (certified diagnosticor, expert-geometer…): an error of 5% or more to the extent commits the responsibility of the person who performed the calculation.

The annexes are specified by an ordinance of 9 May 1995: these are secondary, external and unfit for habitation. To be considered, annex areas must be at least 1.80 m high under ceiling.

The annexes included in the calculation of the useful surface are: Caves and basement, tons and attics, sheds and workshops, external dryers and cellars, balconies and loggias, Verandas, Terraces accessible upstairs or semi-buried.

On the other hand, garages, gardens or courtyards, even private ones, cannot be taken into account in the calculation of the SU.

Weighted surface

Weighted area is a concept used primarily by condominiums within their internal regulations. It aims to weight the area of a dwelling using non-metric criteria to allocate co-ownership costs in the fairest possible way.

Indeed, acreage is not the only criterion for determining the value of a lot within a condominium: the floor, view or height under ceiling are also objective elements that can be taken into account. The weighted area therefore allows to specify the value of a lot from several criteria, combined in a weighting factor.   This is none other than the meeting of different coefficients, each corresponding to a non-metric characteristic of the lot (stage, view, etc.). The choice of the reference surface is free, the important thing is that the same is chosen for all lots.

According to the law (status of the co-ownership of built-up buildings, act of July 10, 1965): Any co-ownership by-law published as of December 31, 2002 indicates the elements taken into consideration and the method of calculating the quotas of common areas and the distribution of expenses.

Generally, you can meet the following coefficients:  Floor, View, Height under ceiling, Nature of the lot, Ease of access, Proximity of annexes …. Each of the coefficients selected is expressed as a percentage. Their combination gives, for each batch, an overall weighting that is then applied to the selected surface.

The weighted area is primarily used to assess the common area quotas to be allocated to each lot, in order to distribute condominium expenses more equitably, but it can also be used to set a sale value when the condominium is delivered by the developer, and in the case of rental businesses (in shopping malls in particular), the weighted area is used to accurately assess the rental value of each.

Term of living space and surface Loi Carrez

Article R. 111-2 of the Building and Housing Code defines living space as follows:  “The living area of a dwelling is the built floor area, after deducting the surfaces occupied by walls, partitions, steps and stairwells, sheaths, door and window openings.”

In other words, it is the sum of all the rooms that make up a dwelling, excluding outbuildings and the medium and large work (windows, doors, stairs…) .

The living area and the Loi Carrez area measure the built floor area, including the attics that are designed and exclude any part of less than 1.80m in ceiling height. They do not take into account the non-amenable parts: walls and door openings, stairs, etc.

The Loi Carrez surface only takes into account parts with a minimum area of 8 m2.

The two have different uses: the area Of Carrez law is mentioned on a deed of sale, while the living space must appear in a rental lease.

What is living space and floor area

Finally, it is important to distinguish the living area from the floor surface! Also very close, there are differences in calculation between these two measures. Unlike the living area, the floor area includes the verandas and the space occupied by the interior walls.

Above all, these two standards are intended for markedly different uses. The floor area should be measured in the case of a new housing construction, or in the case of expansion or improvement. The resulting area is used to apply for a building permit.

Since 2012, the floor area has replaced the SHON (net hors work) and the SHOB (gross hors work surface).

How to calculate

The owner of a dwelling is entitled to calculate his own surface area, but the stake is high because the risk of error is significant, the definition of the areas to be included and excluded is quite technical. The measure commits the owner’s responsibility: if the error is greater than 120th (or 5%) of the total area, the aggrieved party can file a claim. There is a risk of having to pay compensation or applying a rebate on the rent.

The second solution is to call on a professional to make his diagnosis of living surface law Boutin, or surface Law Carrez, then it is necessary to resort to a certified diagnosticor. It issues a surface certificate of legal value.

There are advantages to using a professional diagnosticor: in addition to the precision of the measurements, the expert is liable for civil liability. The owner is therefore covered in the event of a dispute. The diagnosis of living space has an unlimited lifespan, as long as the owner does not carry out work that alters the area of the dwelling.