Long sales: think about it!

In property sales, the commonly accepted rule sets a three-month period between the signing of the sale agreement and the signing of the deed of sale itself, accompanied by the handover of the keys to the property. This is actually a reasonable minimum to carry out the various steps on the buyer’s side: putting together their file and obtaining their mortgage.

A three-month period is therefore essential, but in no way constitutes an obligation: you can consider extending it for various reasons that we will explain to you. You will thus transform your transaction into what is known as a long sale.

The principles governing long sales

Let’s begin by defining the long sale process, useful for projecting yourself into a transaction that has been modified. In reality, nothing changes, except for the period set between the signing of the sale agreement and that of the notarised deed formalising the transfer of ownership: a sale is considered long when the period agreed between the parties equals or exceeds six months. In the other direction, the law sets no maximum period. However, you should know that it will become mandatory to sign a sale agreement at the notary’s office if the long sale exceeds 18 months.

It should be noted that this period is always defined at the outset, in order to mutually agree on the contours of the sale. However, in the event of difficulty obtaining financing on the buyer’s side or vacating the property on the seller’s side, an amendment can be signed to review the period.

The other steps are similar to a classic sale: signing a sale agreement (not mandatory but strongly recommended) containing any suspensive conditions and deposit arrangements, submission of the mortgage offer, then signing the deed of sale.

The long sale must result in an agreement with the buyer, who may endure it rather than desire it. To facilitate obtaining their approval, you could provide a financial gesture on the purchase price, for example. Or highlight the advantages they would gain, which we will detail further below.

Finding another property

As a seller of a property, your primary concern will be knowing where you will live once your property is sold. You can obviously buy another house before selling the one you own, but the operation is not accessible to everyone: you must have the budget and/or borrowing capacity to do without the capital from the sale. There is the option of taking out a bridging loan but, apart from the costs involved, this presents a risk if you have difficulty selling, and moreover the bank will only take into account part of the expected sale amount, in case it is revised downwards.

It therefore remains most often preferable to sell your property before projecting yourself into another one and even searching for one. Uncertainty then remains: will you find a house or flat that fully corresponds to you before the three-month deadline? Will you be forced to stay with relatives, and store your possessions in expensive self-storage? Even in the event that you find your ideal property fairly quickly, in one month for example, this new transaction will also be subject to the fateful three-month period: you will not be able to take possession of your new property until one month after handing over the keys to your current one!

The main advantage of the long sale lies here: by negotiating with your buyer a longer period before finalising the notarised deed, of six months for example, you will have a considerable three-month window to find your future home, in addition to the three months intended for putting together the financing. Provided that for your purchase, the owner does not also wish to proceed with a long sale, of course.

Reassuring banks

Given that you choose to sell before buying for all the reasons set out above, you will quickly realise that your bank or broker will find this idea brilliant: the capital you will have for your acquisition financing will then be a certainty, not a presumption. Banks will tend to offer lower interest rates given your stronger file.

Furthermore, a longer period may encourage you to look for the most advantageous loan conditions, rather than accepting a moderately interesting proposal that arrives within the allotted timeframe.

Preparing for your move more peacefully

Beyond the financial and administrative matters, it is possible that your home is filled with objects that you will not want to take with you into your new life. Sorting is often necessary when moving, and taking the time to sell or give away excess items will avoid cluttering your new home unnecessarily.

In the event of a change of region, a longer period can also make the transition smoother and more peaceful. Proceeding in several trips instead of one, and taking your bearings after, of course having found your new property, will be an appreciable strategy.

Optimising the chances of financing the transaction

A long sale can also relieve your buyer, whose impatience can be tempered by the advantages they gain from it. If it can mean a longer period to prepare their packing and plans regarding the move-in (and any work), it can also relate to the financing of the property.

During turbulent periods, notably as was the case during the health crisis and currently with rising rates, a file for a bank loan can experience difficulties. The procedures with brokers and various banks may require increased attention, all the more so as responses from the institutions concerned tend to be delayed.

Planning for a long sale, with a period of six months or more before finalising the transaction, will allow financing to be secured much more peacefully. Let us add that your buyer might also have a property to sell, and the long sale will give them more time to build up their deposit. They will thus gain in ease, without missing out on your property for which they fell in love.

Ultimately, the long sale can be seen as an intermediate strategy面对购买-出售或出售-购买的困境。可以说，它兼具两种解决方案的优势，如果需要更多耐心，牺牲与安心相比确实很小。对于买卖双方来说，长期销售都能保证交易的安全性和成功：请务必考虑！