Parler Paris Nouvellettre®: Not So Nice in Nice in Paris?

Nice, French Property Insider
Not So Nice in Nice: The Agency Pictured at Right

French Property Insider
Volume IX, Issue 19
May 12, 2011
Paris, France
FrenchPropertyInsider.com

Bonjour French Property Insider Subscriber,

* Legal and Compliance Issues for the US Expatriate

We've had such an overwhelming response to the presentation (as noted above) by legal and banking professionals Joel Nagel and Peter Zipper, "Legal and Compliance Issues for the US Expatriate," that we've moved to a larger venue: Chez Jenny. This will allow us to accommodate more than double the attendance in a quieter, more professional and private space.

As a result, there is a cost and we are asking for a 'donation' of 10€ per person, which will include one drink (Kir, wine or soft drink) to offset the expenses of the larger space. For those who arrive at the door with no reservation, the entry 'donation' will be 15€. If you have already reserved and decide not to attend, please cancel your reservation by emailing zing@adrianleeds.com

If you'd like to learn more about why this presentation is so vital to the American Expat, be sure to read Parler Paris Nouvellettre® from May 4th or last week's French Property Insider of May 5, 2011.

* Nice is Nice...Most of the Time

It is not my aim to frighten you from the real estate playing field in France, but on occasion, the way the agents in France do business is shocking, even to those of us who are not 'faint of heart.'

You may recall that I took advantage of the period known as the "délai de réflexion" within which I was entitled to retract the purchase of the Nice apartment, after a reconsideration of the steep and narrow stairs which gave me nightmares. The retraction was officially done by the Notaire, but I wrote a personal letter of apology to the agency:

----- Original Message -----
From: Adrian Leeds
Sent: Thursday, April 14, 2011 6:14 PM
Subject: Desole!!
Dear...,
I am terribly sorry that I have canceled the purchase of the Place du Palais apartment. It was certainly not my intention to do this! As it turned out, because the 7 day period of reflection was delayed, it coincided with my visit to the apartment with the contractors.
I LOVE THE APARTMENT!! And I am very sad to let it go. The apartment requires a lot of serious and expensive work. What I realized in the middle of the night (I had a nightmare!) is that the stairs and entry would forever be a problem for me, the workers and the renters. It would never be the great property I hoped it would be.
Please forgive me! And please get to work to find me another apartment as quickly as possible that meets all my requirements:
30 - 45 meters
light
views
not higher than 3rd (but easy and pleasant steps) without elevator
Old Nice
Many thanks for all your efforts and your understanding!
Adrian

The response I received from what is considered an important agency in Nice was this:

-------- Original Message --------
Subject: Re: Desole!!
Date: Fri, 15 Apr 2011 09:13:36 +0200
Organization: Palais de l'immobilier La Préfecture
To: Adrian Leeds
Chère Madame,
Nous ne croyons aucunemenent à vos bonnes intentions et soyez sûre que même si nous avions une affaire à proposer, nous la proposerions à tous sauf à vous.
Bon vent!
Laurence M.
TRANSLATION:
Dear Madam,
We do not believe at all in your good intentions and are sure that even if we had business to propose, we would propose it to everyone but you.
Good luck!
Laurence M.

It's hard to believe, coming from an American entrepreneurial perspective, that an agency would reject a client ready, willing and able to spend their money plus in this case, a client who gives preference to that agency over others!

But, this is France, and business is not conducted in the same way as is in our culture. Naturally, I will now cross the agency off my list of viable resources -- the kind of agency that clearly doesn't understand how to do business with our kind of clients and I will hope that none of you readers will ever have to cross their path!

In another instance this past week, a client of ours visited an apartment for a second time, bringing with her our designer, Martine di Matteo, to review what renovation could be done to bring the apartment to the standard she is hoping for. After two visits, she, like me, decided the staircase would prevent her from thoroughly enjoying the property and rejected it -- but of course, long before any offer was made on the property so the only thing lost was a bit of time. We all learned by the episode that we should eliminate properties on a high floor with no elevator and in our viewpoint, nothing was really lost.

The next day I received a phone call from the agent who proceeded to YELL at me over the phone, berating us for having wasted his time when 'the client should have known in advance that three flights of stairs were not acceptable!'

At first, I started to explain the process for a foreign client who is not familiar with Paris property and try to calm him down, and then midstream realized the scenario was much like in Nice -- that a professional agent is closing the door on potential business...for what?

What are they protecting? Their pride?

Clearly, it's our job to protect our clients from what we would consider very unprofessional behavior. And we do have a choice -- we aren't obligated to work with these agents who aren't open to doing business without letting their emotions overrule rational thinking. Luckily, there are lots of other agents who are more modern and open minded to the foreign client. We located another one in Nice, thanks to a property consultant on my team who has kept a steady watch on new properties coming on the market that might suit my taste.

Tuesday morning, she called and presented two potential properties, both of which carried with them exceptional addresses: 1) Place Masséna and 2) Cours Saleya. Within moments after seeing photos and hearing full descriptions, I made an offer on the Cours Saleya apartment -- an apartment that wasn't what I had in mind from the beginning at all, but which will actually better suit my needs than the Place du Palais apartment.

It's not at all unusual for this to happen, even with our own clients, who come with one thing in their mind, but end up making very different decisions about the property of their dreams, just as the client who in the second visit decided the stairs weren't for her.

In this case, a two-bedroom apartment with a lower price per square meter than the Place du Palais apartment that needs no renovation wins hands down as a better investment from a rental return perspective. Two-bedroom apartments that sleep up to six rent for about 50% more than a one-bedroom apartment than can accommodate only four -- and in this case, the bottom line costs will have very little difference.

No, it doesn't have a balcony, but it has lots of windows with views of the rooftops and sky as well as the stretches of old Niçois buildings on the street behind the Cours Saleya, which means it will be quieter than if it overlooked the Cours itself.

No, it doesn't have a bathtub, but as I understand it, it may be possible to fit one in. And of course, it's as plain as 'white bread,' but fortunately, it's amazing what great fabrics, beautiful furnishings and quality artistic touches will do to luxuriate a clean slate. Already, Mosaiiste Véronique Husson assure me she could work magic to the kitchen and bath and felt a corner tub could replace the large shower with little work.

So, a trip to Nice this weekend is necessary to confirm the purchase after seeing the apartment and doing the customary 'due diligence.' I will also view other properties our new (British) agent will find for me and will keep you posted on the results!

Adrian Leeds A bientôt,