The acquisition costs of a property far exceed the price displayed in the listing. Between transfer taxes, bank guarantees, and tax adjustments, the actual budget often lies well beyond what buyers anticipate, especially in older properties where the gap easily reaches a tenth of the sale price.
Structural Gap in Transfer Taxes Between Old and New Properties
The distinction between old and new is not limited to comfort or thermal standards. It directly affects the tax burden of the acquisition. In older properties, acquisition costs represent 7 to 8.5% of the price, compared to 2 to 3% in new properties. This gap comes almost entirely from transfer taxes (DMTO), whose increased departmental rate has been in effect since 2014 in nearly all departments.
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The notary’s fees are the same regardless of the type of property: they follow a proportional scale set by decree and are non-negotiable. What we regularly observe is a confusion between fees and transfer taxes, leading some buyers to attempt to “negotiate notary fees” when the room for maneuver is almost nonexistent.
One often overlooked point: the furniture included in the sale (fitted kitchen, wardrobe) can be deducted from the calculation base for transfer taxes, provided it is listed and valued in the preliminary agreement. For a high-priced property, this deduction represents a tangible saving. We recommend consulting a real estate guide on Capitaine Immo to anticipate these items as soon as the file is being prepared.
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Mortgage Guarantee: Surety or Mortgage, an Underestimated Financial Trade-off
The choice of guarantee weighs as heavily as the bank’s processing fees on the total cost of the loan. Consumer articles list this item without ever detailing the real impact on the buyer’s cash flow.
Two mechanisms dominate the French market:
- Bank surety (like Crédit Logement): the buyer pays a fee and a mutual guarantee fund. Part of this fund is refunded at the end of the loan, which reduces the net cost. No notary involvement, no registration fees.
- Conventional mortgage: this involves an additional notarial deed with registration fees at the land publicity service. In case of resale before the loan term, release fees apply, often forgotten in initial simulations.
- The lender’s privilege (PPD), less expensive than a mortgage as it is exempt from land publicity tax, but reserved for existing properties (not for new ones in VEFA).
We systematically recommend surety when it is accessible: the final net cost is lower, early resale does not generate additional fees, and the process is faster. Banks do not always offer this option spontaneously.
Processing Fees and Borrower Insurance: Negotiable Items
Bank processing fees vary by institution. Unlike notarial fees, these fees are negotiable and sometimes waived as part of commercial offers or income domiciliation. Not challenging them means accepting an avoidable extra cost.
Borrower insurance deserves special attention. Since the Lemoine law, changing insurance is possible at any time, without fees or penalties. The group insurance rate offered by the lending bank is rarely the most competitive, especially for young, non-smoking profiles. Delegating borrower insurance can reduce the total cost of the loan by several thousand euros over the term.
The acquisition budget should include this item from the simulation stage, not after signing the preliminary agreement. Insurance is calculated on the borrowed capital or on the remaining capital due according to the contracts, which significantly changes the monthly payment.
Personal Contribution and Additional Costs: What Banks Expect in 2024
Institutions now frequently require a contribution of 10 to 20% of the property’s price. This contribution is not only used to reduce the borrowed amount: it also covers notary fees, guarantee fees, and processing fees, which banks are increasingly reluctant to finance.
A buyer who presents a contribution covering only the additional costs (without reducing the borrowed capital) receives less favorable rate conditions than a profile contributing more. The discount grid applied by credit committees is directly indexed to the contribution/price ratio.
Often Overlooked Costs at the Time of the Preliminary Agreement
The preliminary agreement itself can generate costs if the buyer withdraws outside the legal deadline or if poorly drafted suspensive conditions do not serve their protective role. A few items to budget in advance:
- The deposit (usually between 5 and 10% of the sale price), held between the preliminary agreement and the signing of the authentic deed.
- Additional diagnostics requested by the bank or insurer (asbestos before work, soil study), which are the buyer’s responsibility in certain configurations.
- The real estate agency commission, displayed as “buyer charge” or “seller charge,” which modifies the base for transfer taxes depending on the case.
The agency commission “seller charge” reduces the base for transfer taxes, which mechanically decreases notary fees. This detail, rarely highlighted during negotiations, can represent a significant saving on high-priced properties.
Budgeting for a real estate purchase in 2024 requires adding the displayed price, transfer taxes, loan guarantee, borrower insurance, processing fees, and the deposit. Each item is negotiated or optimized differently. The buyer who masters this breakdown negotiates better, borrows better, and avoids unpleasant surprises at the time of signing with the notary.