Real estate purchases: how to reduce notary fees—yes, it's possible!

With the recent announcement of an increase in transfer duties, notary fees could become an additional burden for real estate buyers. However, there are practical ways to reduce these fees and optimize your property investment. In this article, discover proven strategies to cut notary costs and save money on your next real estate purchase.

Understanding notary fees: a significant expense in your budget

Notary fees—or more precisely, property acquisition costs—represent a substantial expense in any real estate purchase in France. On average, these fees account for:

- 2% to 3% of the sale price for new properties,

- 7% to 8% for older properties.

A forthcoming 0.5% increase in transfer duties, announced by the government, could further escalate these costs. Fortunately, there are simple and strategic ways to minimize this financial burden.

1. Negotiate notary fees

Since 2021, buyers can request a discount on the notary’s fees, which form a small part of the total acquisition costs. These discounts, capped at 20%, can be granted for transactions exceeding €100,000.

Practical example:

For a property purchased at €200,000 with total notary fees of 8% (€16,000), the notary's share is approximately €3,000. A 20% discount on this portion would save you €600.

While this reduction may seem modest, it becomes increasingly valuable for higher-priced properties.

2. Deduct furniture from the sale price

One of the most effective ways to reduce your notary fees in 2024 is to deduct the value of any furniture included in the property purchase. Notary fees are calculated solely on the property's real estate value, so movable items can be excluded:

- Appliances (oven, dishwasher, refrigerator),

- Built-in furniture (closets, shelves),

- Other equipment (firewood, tools).

Practical example:

For a home sold at €500,000 that includes €30,000 worth of furniture, the taxable real estate value drops to €470,000. At a notary fee rate of 7%, this equates to a savings of €2,100.

To ensure this deduction, provide invoices or a detailed assessment of the included furniture.

3. Pay agency fees yourself

An often-overlooked yet effective strategy is to cover the real estate agency fees yourself. Why? Because notary fees are not applied to agency commissions.

Listing comparison:

- Scenario 1: Net seller price of €188,000 + €12,000 agency fees (notary fees apply to €188,000).

- Scenario 2: Total price of €200,000, including agency fees (notary fees apply to €200,000).

In the first case, you save approximately €840 in notary fees compared to the second scenario, assuming a 7% rate.

Why reducing notary fees matters

In a market where interest rates remain attractive, property acquisition costs shouldn’t hinder your plans. By applying these strategies, you can optimize your budget, achieve significant savings, and invest with confidence.

Partner with Côte d'Azur Sotheby’s International Realty

For your real estate projects on the French Riviera, trust Côte d'Azur Sotheby’s International Realty to guide you every step of the way. With our extensive network of partners, we can connect you with renowned, bilingual notaries, ensuring a seamless and transparent purchasing process.